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

We will improve the pricing mechanism for pumped storage. In May 2021, the National Development and Reform Commission issued the "Further Improving the Price Formation Mechanism of Pumped storage", which clearly states that it is necessary to adhere to the two-part price policy as the main body, further improve the price formation mechanism of pumped storage, clearly form the electricity price in a competitive way, incorporate the capacity price into the transmission and distribution price recovery, and strengthen the connection with the construction and development of the power market. We will gradually promote pumped storage power plants to enter the market.

4. Implement the "six contracts" for medium and long-term transactions, and introduce the green power trading plan

The "six signature" work requirements include six aspects of "full signature", "long signature", "time period signature", "meeting signature", "standardized signature" and "electronic signature", aiming to comprehensively deepen the reform of the electricity market and build a more perfect and orderly market system and market structure. According to the data of China Electric Power Union, in 2021, the total amount of medium and long-term power direct transactions in the national electricity market will be 3,040.46 billion KWH, an increase of 22.8%. Among them, the total amount of direct electricity transaction in the province is 2,851.45 billion KWH, and the total amount of direct electricity transaction (external received) between the provinces is 189 billion KWH, accounting for 93.8% and 6.2% of the medium and long-term direct electricity transaction in the national electricity market, respectively. In addition, Guangzhou Power Trading Center has taken the lead in the country to complete the 2022 power medium and long-term contract signing work in December, the transaction volume reached 242.3 billion KWH (landing end), a record high, more than the average power supply scale of the past three years, the participation rate of market players reached 100%, and for the first time, all "network to network" and "point to network" transactions were signed in full. It has also locked in advance the trans-provincial power supply arrangement for the southern region in 2022, of which the power supply from the west to the east reaches 230.8 billion KWH.

The "green power trading pilot work plan" says that green power trading will set up independent green power trading varieties under the existing medium - and long-term trading framework. The market players involved in green power trading, mainly wind power and photovoltaic power generation, have gradually expanded to other renewable energy sources such as hydropower, green power trading prioritizes fully market-oriented green power, further reflecting the green attribute and value of energy. Data from the China Electricity Union show that 630 million KWH of green power will be traded in the province in 2021.

5. The second batch of spot power pilot is progressing steadily, and Guangdong will open a trial operation of annual settlement in 2022

On the basis that the first batch of 8 pilot power spot markets in the province have completed at least one month of continuous settlement trial operation, Gansu, Fujian, Zhejiang, Sichuan, Shanxi and Guangdong have started continuous settlement trial operation. Shandong has launched five power spot market settlement trial runs, and entered the long-cycle continuous settlement trial run from January 1, 2022; In principle, the Southern power spot market (starting from Guangdong) will enter the annual continuous settlement trial operation from January 1, 2022.

The second batch of power spot pilot launched. In April 2021, the "Notice on Further Doing a good Job in the Pilot Work of the construction of the Power Spot Market" selected Liaoning, Shanghai, Jiangsu, Anhui, Henan and Hubei as the second batch of spot pilots. In addition, the construction of spot market in Shanghai, Jiangsu and Anhui should strengthen the overall planning and coordination with the Yangtze River Delta regional market; We will support pilot projects for a regional electricity market in the South, and accelerate research on specific plans for the construction of a spot electricity market in the Beijing-Tianjin-Hebei region and a regional electricity market in the Yangtze River Delta. The Jiangsu Energy Regulatory Office has discussed the "Jiangsu Power Spot Trading Rules (Draft for Comments)" in November.

In addition, a new mechanism for the participation of renewable energy in the market has emerged in the Guangdong spot market rules. In December, the Guangdong Provincial Energy Bureau issued the "Southern (starting from Guangdong) Power spot Market Implementation Plan" (draft for comments), proposing the establishment of a "medium - and long-term + spot + auxiliary services" power market system, introducing market-oriented users with renewable energy power consumption demand, through the sale of electricity companies and centralized wind power, photovoltaic and biomass and other renewable power generation enterprises to carry out transactions. When conditions are ripe, research and development of renewable energy electricity to participate in spot market trading.