Biomass power generation is difficult to enter the spot market

Expert advice

Spot trading should be aimed at industry pain points

So, why is China's biomass power generation participating in market transactions delayed? Why has the spot market not broken through?

Yuan Aiping said that at present, there are two "pain points" in carrying out biomass power generation in the country to participate in power spot trading. First of all, the prediction accuracy of renewable energy is relatively low, may face greater risk of market price fluctuations, and bear heavy deviation electricity assessment or balancing costs. Secondly, there are many kinds of policies involving renewable energy consumption and participation in the market. Including renewable energy subsidy mechanism, renewable energy consumption responsibility weight mechanism and other policies coordination needs to be strengthened, and the efficient connection between renewable energy spot trading and medium - and long-term contracts, green electricity trading, carbon trading is also an issue that needs to be considered.

In this regard, Yuan Aiping proposed to further expand the scope of power spot trading pilot, including biomass power generation into the scope of power spot trading pilot. He said: "It should be clear that the biomass power generation stock project to participate in the spot market electricity, and the original subsidy of the project should continue to be retained, the benchmark price in accordance with the power market price implementation." At the beginning, it is recommended that all places adopt the way of "guaranteed quantity and guaranteed price" to encourage biomass power generation projects to voluntarily enter the power spot market."

At the same time, he also hopes to introduce relevant policies to support the transformation of biomass power generation projects. It is not only necessary to carry out technical transformation of energy fuel technology and environmental protection facilities, but also to encourage new, improved and expanded heat storage facilities of biomass power generation projects to adapt to the flexibility of the power spot market. To this end, the state should allocate special subsidies as support to further strengthen the adaptability of enterprises to market-oriented transformation.