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

Under the Pilot Rules for Inter-Provincial Surplus Renewable Energy Power Spot Trading (Trial) issued in July 2017, in terms of inter-provincial spot trading, the National Grid has achieved full coverage of inter-regional surplus renewable energy power spot trading in 2020. On this basis, in November 2021, the State Grid issued the "Inter-Provincial Power Spot Trading Rules (Trial)", and planned to start pilot trading within the scope of the State Grid Company and Inner Mongolia Power Company. The rules not only open the sale of electricity companies, power grid purchasing, power users to participate in the inter-provincial power spot trading, the market scope from the inter-regional inter-provincial expansion to all provinces, but also the market positioning in the implementation of inter-provincial medium - and long-term transactions on the basis of the use of the remaining transmission capacity of the inter-provincial channel, to carry out inter-provincial power spot trading before the day and intra-day energy trading. The realization of the spatial dimension covering most provinces in the country, covering the power trading of a variety of energy sources, has played an important role in the establishment of a complete power market system. Its operation indicates that China's complete and unified inter-provincial power trading system has been basically built.

3. The reform of electricity price liberalization is deepening

We will in an orderly manner lift the on-grid tariff for all coal-fired power generation and the electricity prices for industrial and commercial users. In October 2021, the National Development and Reform Commission issued the Notice on Further Deepening the Market-oriented reform of the on-grid Tariff for coal-fired power generation, which clearly and orderly liberalized the on-grid tariff for all coal-fired power generation, and formed the on-grid tariff within the range of the "benchmark price + fluctuation" through market transactions, and the fluctuation in principle did not exceed 20%, and the spot price of electricity was not subject to the above range limits. All industrial and commercial users should be encouraged to enter the electricity market in an orderly manner, purchase electricity at market prices, and abolish the tariff for sales of industrial and commercial catalogues. Residential and agricultural electricity consumption shall implement the current catalogue sales price policy. For users who have not yet entered the market, all users of 10 kV and above should enter, and for users who have not purchased electricity directly from the power market, power grid enterprises should purchase electricity as agents (The "Notice of the National Development and Reform Commission on Matters related to Enterprise agent power purchase Work" regulates the process of power grid enterprises agent power purchase). In addition, in order to ensure the market-oriented reform of the on-grid electricity price for coal-fired power generation, further liberalize all types of power generation plans and strengthen the connection with the time-of-use tariff policy.

We will improve the tariff mechanism for catalogues. The Notice on Further improving the time-of-use tariff mechanism said that on the basis of maintaining the basic stability of the overall level of sales electricity price, further improve the catalogue time-of-use tariff mechanism, establish the peak tariff mechanism, and improve the seasonal tariff mechanism. According to incomplete statistics, 24 provinces and cities have introduced 25 relevant policies to improve the time-of-use tariff mechanism.

Electricity transmission and distribution prices enter the second regulatory cycle. The "Notice on the Key Work of Reducing Costs in 2021" issued by the National Development and Reform Commission in April 2021 said that the newly approved 2021 transmission and distribution electricity prices and sales electricity prices should be smoothly implemented, and unreasonable increases in electricity prices should be further cleaned up, and the general industrial and commercial electricity prices should be continued to be reduced. Continue to promote the market-oriented reform of electricity, and allow all manufacturing enterprises to participate in market-oriented electricity transactions. On October 14, 2021, the National Development and Reform Commission issued the "Trans-Provincial and Trans-Regional Special Project Transmission Price Pricing Measures", which revised the "Trans-provincial and Trans-regional Special Project Transmission Price Pricing Measures (Trial)" issued in 2017. On the basis of the first regulatory cycle (2017-2019), taking into account the impact of the reduction of electricity prices (electricity bills) in response to the epidemic in 2020, the transmission and distribution prices of the second regulatory cycle of each provincial power grid after approval will be implemented from January 1, 2021. Compared with the first regulatory cycle, the transmission and distribution price of the second regulatory cycle has decreased as a whole, among which, the power price of the five regional power grids in the two-part transmission price has changed from 2 electricity prices in the first cycle to 5 electricity prices in the second cycle, and each regional power grid has its own electricity price. In addition, from December 2, 2021, temporary transmission prices will be implemented for UHVDC projects in Northern Shaanxi - Hubei and Yazhong - Jiangxi.