By the end of 2025, the installed capacity of gas and electricity will reach 165 million kilowatts, accounting for 4.3% of China's installed power generation capacity and firmly ranking as the world's second largest installed capacity of gas and electricity... However, behind the impressive data is the industry dilemma of "the more we produce, the more we lose". Facing 2030, opportunities and challenges coexist. Industry institutions estimate that by then, the apparent consumption of natural gas in China will exceed 500 billion cubic meters, and the total installed capacity of gas and electricity is expected to reach 250 million kilowatts.
The implementation deviation of the three major mechanisms of gas electricity linkage, capacity compensation, and auxiliary services, coupled with the mismatch of reform pace and rules in different energy categories and links, has caused systemic problems that have resulted in the profitability of enterprises falling far short of theoretical expectations. The core contradiction has shifted from the question of "whether there is vitality" to the issue of "whether it is worth it, whether it is possible, and whether it is good or not" regarding the adaptability of the mechanism. Recently, the National Development and Reform Commission and the National Energy Administration jointly issued the "Implementation Opinions on the National Unified Electricity Market System", which clearly proposes to "promote the entry of gas power, hydropower, nuclear power and other power sources into the electricity market in a rhythmic manner according to different varieties", setting a policy path for the market-oriented development of gas power.
In response to the core challenges faced by the current entry of gas and electricity into the market, such as functional positioning deviation, poor cost transmission, incomplete revenue channels, and insufficient cross market collaboration, combined with the requirements of the national unified electricity market construction and the practical situation of gas and electricity entering the market, we adhere to the principles of "reasonable revenue on the power generation side, affordable on the terminal side, and overall system economy", and put forward five suggestions to promote the high-quality development of gas and electricity:
One is to improve the top-level design of the entry of gas and electricity into the market, and build a solid institutional foundation for the smooth promotion of market-oriented reforms. Establish a unified national framework for the entry of gas and electricity into the market, issue basic guidance documents for the participation of gas and electricity in the electricity market at the national level, clarify the principles and basic models, unify the admission standards and basic supporting specifications, clarify the core functional positioning of "market-oriented regulated power sources" for gas and electricity, unify the four basic supporting specifications of unit admission qualifications, regulation capacity verification, cost accounting caliber, and information disclosure, and avoid transaction barriers caused by fragmented rules in various regions.
The second is to strengthen the connection between gas electricity linkage and medium - to long-term electricity trading, and to open up the regulatory channels for the synergy between natural gas and electricity markets. Further improve the gas electricity linkage mechanism and clarify the transmission path of medium and long-term contract prices after the adjustment of gas electricity linkage.
Thirdly, optimize market pricing and gas and electricity pricing rules to ensure a smooth transition from policy prices to market prices. Moderately relax the upper limit of electricity prices during peak hours, fully cover the marginal costs of gas and electricity fuel, power generation losses, etc., incentivize short-term peak supply of gas and electricity, and guide gas and electricity to autonomously respond to system electricity balance and peak regulation needs.
The fourth is to improve gas and electricity auxiliary services and capacity compensation mechanisms, and expand diversified revenue channels for gas and electricity to participate in the market. Accelerate the construction of the auxiliary service market, accelerate the expansion of service products, promote products such as fast climbing, moment of inertia, fast backup, black start, voltage support, etc., and clarify their entry thresholds for gas and electricity; Accelerate the completion of the rules for the auxiliary service market, establish a "who benefits, who bears" guidance and sharing mechanism, promote the linkage between product pricing and regulatory performance, streamline the service fee sharing mechanism, and establish a cross provincial and cross regional cost sharing mechanism.
The fifth is to explore an energy market system that integrates "gas electricity carbon" linkage, and to establish collaborative rules between upstream and downstream energy markets. Accelerate the exploration of collaborative mechanisms between the natural gas market and the electricity market, shorten the adjustment window period of natural gas trading contracts, and adapt to the medium - to long-term and short-term flexible trading mechanisms of electricity on a weekly and daily basis.
Disclaimers
The content is sourced from public news reports, and citations are for browsing and reference only and not for commercial purposes. If there are any issues with the content, copyright, or any other objections of the work, please contact us for deletion.
