Power grid investment increased by 1.1% year-on-year, and the total scale of operation increased steadily

In 2021, the national power grid infrastructure investment will be 495.1 billion yuan, up 1.1% year-on-year. From the data of the past ten years, the proportion of power grid investment showed an overall upward trend during the "Twelfth Five-Year Plan" period, and an overall downward trend during the "thirteenth Five-Year Plan" period. The "14th Five-Year Plan" continued to decline in the beginning of the year.

The total scale of power grid operation increased steadily. In 2021, China will add 243.34 million kVA of power transformation equipment with a capacity of 220 kV or above, 20.46 million kVA more than in the previous year, an increase of 9.2 percent. A total of 32,000 kilometers of 220-kilovolt or above transmission lines were added nationwide, 2,809 kilometers less than in the previous year, or 8% less than in the previous year. The new DC converter capacity was 32 million kilowatts, 20 million kilowatts less than the previous year, down 38.5%. By the end of 2021, the country's 220 kV and above substation equipment capacity totaled 4.94 billion kVA, an increase of 5.0% year-on-year; The circuit length of 220 kV and above transmission lines totaled 840,000 kilometers, an increase of 3.8% year-on-year.

Steady progress has been made in the construction of power transmission channels, and the ability to allocate resources across regions and provinces has been improved. By 2021, two UHV projects will be completed and put into operation across the country. On June 21, Yazhong - Jiangxi ±800 kV UHVDC project was completed and put into operation, becoming the first UHVDC transmission project completed and put into operation during the "14th Five-Year Plan" period. On December 26, the Changchang-Changsha UHV AC project was completed and put into operation, becoming the first UHV AC project in the first year of the "14th Five-Year Plan" of the State Grid. By the end of 2021, a total of 32 UHV lines will be completed and put into operation across the country. Among them, 15 AC UHV, all in the national grid; 17 DC UHV, 13 State grid, 4 Southern power grid.

The service quality of power business qualification license and the service level of "access to power" continue to improve. In 2021, among the "good and bad" evaluations of power business qualification licenses, 13,248 were "very good", accounting for 96.52%, and 446 were "good", accounting for 3.25%, with an overall favorable rate of 99.77%; "General" 22 cases, accounting for 0.16%; "Poor" and "very poor" 9 cases, accounting for 0.07%. Since 2021, the power business environment has been continuously optimized through a series of initiatives nationwide, such as deepening "three zero" (zero door-to-door, zero approval, zero investment) and "three provinces" (labor saving, time saving, and money saving) services. In 2021, it will save more than 65 billion yuan in electricity costs for users.

The fourth power system reform situation and policy

1. The system structure of the electricity market has been gradually improved, and market-based transactions have been growing

China has initially formed a full market system structure covering inter-provincial and intra-provincial spatial scope, covering multi-year, annual, monthly, and intra-month medium and long-term transactions and pre-day and intra-day spot transactions in the time cycle, and covering electric energy, auxiliary services, contracts, renewable energy consumption weights and other trading varieties on the trading targets. At present, the inter-provincial and intra-provincial medium and long-term market has been relatively perfect and normal operation.

According to the data of the China Electricity Union, in 2021, the country's electricity trading centers have organized and completed 3,778.74 billion KWH of market electricity transactions, an increase of 19.3%, accounting for 45.5% of the total social electricity consumption, an increase of 3.3 percentage points. Intra-provincial transactions (medium and long term only) totaled 3,076.03 billion KWH, while inter-provincial transactions (medium and long term and spot) totaled 702.71 billion KWH. The power trading centers in the State grid region have organized and completed 2,917.15 billion KWH of market electricity transactions, accounting for 44.5% of the total social electricity consumption in the region; The power trading centers in the Southern Power Grid region have organized and completed a total of 670.28 billion KWH of market electricity transactions, accounting for 46.6% of the total social electricity consumption in the region.

In terms of market players, the regional power trading platform operated by the State Grid has registered 366,000 market players of various types, an increase of 85% year-on-year; A total of 89,800 entities were registered in the regional power market of Southern Power Grid, an increase of 39.9% year-on-year.

2. China's inter-provincial power trading system has been basically completed

The Implementation Rules of the Beijing Power Trading Center for Inter-Regional and Inter-Provincial Power Medium and Long-term Transactions were officially issued in September 2021 after several rounds of revisions, becoming the operating rules for the implementation of the Basic Rules for Medium and Long-term Power Transactions, providing a basis for market players to participate in inter-regional and inter-provincial power medium and long-term transactions. Detailed rules add monthly (weekly, multi-day) transactions on the basis of annual and monthly transactions.