This year’s “Government Work Report†emphasizes that we must adhere to stability and progress, and continue to handle the relationship between maintaining stable and rapid economic development, adjusting economic structure and managing inflation expectations, and accelerating the transformation of economic development patterns and adjustment of economic structure for energy and power. Issues such as development and reforms provide clear policy guidance. From the perspective of power in the report, there are four major points worth watching.
Aspect 1: Building Energy Channel
The original report: to promote energy-saving emission reduction and ecological protection. Optimize the energy structure and increase the proportion of new energy and renewable energy. Strengthen the energy channel construction.
Interpretation: Energy conservation, emission reduction and environmental protection are among the hot issues of representatives and committee members of the two National Committees in recent years. Energy and electricity, as the material basis for economic development, are also in the key areas of energy conservation and emission reduction while ensuring economic and social development of energy needs. There are problems in energy development, transportation, and utilization that reduce energy consumption and improve energy efficiency. From the perspective of energy saving and emission reduction, the key is the construction of energy transmission system.
In order to achieve the goal of optimizing the energy structure, the proportion of non-fossil energy in primary energy consumption during the 12th Five-Year Plan period will exceed 11%, which is about 2.5 percentage points higher than the end of the “Eleventh Five-Year Plan†period. It needs to add 120 million kilowatts of hydropower, 70 million kilowatts of wind power capacity, and 40 million kilowatts of nuclear power. Among them, hydropower is concentrated in the southwest region, and land wind power is concentrated in the northeast, north and northwest regions. In order to optimize the layout of energy development, the “Twelfth Five-Year Plan†outline clearly stated that it is necessary to increase the level of local processing and conversion of energy, relieve the pressure on large-scale long-distance transportation of primary energy, and plan to build large-scale coal and electric power bases in northern Shaanxi, Shendong, and Xinjiang. Therefore, whether it is to adjust and optimize the energy structure or optimize the layout of energy development, the key lies in improving the ability of the power grid to optimize the allocation of energy resources in a wide range. It is imperative to increase the application of advanced technologies such as UHV transmission to meet the needs of large-scale energy base construction and the elimination of large amounts of clean energy. This is an urgent task for implementing the national energy strategy.
Aspect Two: Development of Smart Grid
The original report: Strengthen the use of energy management, the development of smart grids, the implementation of energy-saving power generation scheduling and other effective management methods.
Interpretation: Building a smart grid is an effective means to improve energy regulation and utilization efficiency. Smart grids with information, automation, and interactive features are closely related to energy conservation and environmental protection, high-end equipment manufacturing, and new energy vehicles. They are important support for China's strategic emerging industries and have a low-carbon economy and clean energy development. The important supporting role has become the development trend of the world power grid.
However, unlike developed countries such as Europe and the United States, China is advancing the use of energy intensively and efficiently, and the development of smart grids can precisely meet the needs of large-scale energy bases, especially new energy intensification.
Aspect 3: Promoting Electricity Price Reform
The original report: To further promote the strategic adjustment of the state-owned economy. We will steadily advance the reform of electricity prices, implement the residents' ladder price reform plan, and improve the pricing mechanism for hydropower, nuclear power, and renewable energy. Gradually rationalize the coal price relationship. Study and promote the reform of railways, electricity and other industries.
Interpretation: At present, China has not yet formed an energy price system that effectively reflects market supply and demand, resource scarcity and reasonable production costs. The overall low energy price level is not conducive to regulating demand, energy conservation and emission reduction. The price-to-price ratio of different types of energy products is unreasonable, and the price level of electricity is 20%~60% lower than that of crude oil, coal and other energy sources. Due to the coexistence of market pricing and government pricing and the lack of an effective price transmission mechanism, the contradiction between market coal and planned electricity has become increasingly prominent. This year, the overall level of domestic prices is expected to remain basically stable, providing room for reforms such as rationalizing the price of coal and electricity and implementing residents' ladder prices.
The power reform has already gone through more than 10 years. At present, it is necessary to comprehensively review the reform of China's power industry and speed up the development of ideas for electricity development that are conducive to accelerating the transformation of energy development methods, promoting scientific development of electric power, and effectively guaranteeing national energy security. Promoting electricity price reform and improving the price mechanism during this period will probably become an important breakthrough in deepening reforms.
Aspect 4: Strengthen rural network construction
The original report: Strengthening rural infrastructure such as water and electricity, and continuing to improve rural production and living conditions.
Interpretation: The energy use potential in rural areas in China is very large, but the rural power system is more complex. Due to policy reasons, the rural power grid lacks a sustainable input mechanism for a long time. Although the state continues to increase the intensity of construction and transformation, there are still a few areas where rural power grids are still unsatisfactory, the power supply facilities are aging, and the power supply capacity and safety level are poor. The power management system has not been straightened out. With the acceleration of urbanization, improving rural infrastructure has become an important part of safeguarding people's livelihood. It requires the state to issue complete solutions for the development and management of rural electric power, improve supporting policies, and increase rural investment in fiscal investment, loans, and taxes. Support for development has been established to establish a sound rural power sustainable development mechanism.
Aspect 1: Building Energy Channel
The original report: to promote energy-saving emission reduction and ecological protection. Optimize the energy structure and increase the proportion of new energy and renewable energy. Strengthen the energy channel construction.
Interpretation: Energy conservation, emission reduction and environmental protection are among the hot issues of representatives and committee members of the two National Committees in recent years. Energy and electricity, as the material basis for economic development, are also in the key areas of energy conservation and emission reduction while ensuring economic and social development of energy needs. There are problems in energy development, transportation, and utilization that reduce energy consumption and improve energy efficiency. From the perspective of energy saving and emission reduction, the key is the construction of energy transmission system.
In order to achieve the goal of optimizing the energy structure, the proportion of non-fossil energy in primary energy consumption during the 12th Five-Year Plan period will exceed 11%, which is about 2.5 percentage points higher than the end of the “Eleventh Five-Year Plan†period. It needs to add 120 million kilowatts of hydropower, 70 million kilowatts of wind power capacity, and 40 million kilowatts of nuclear power. Among them, hydropower is concentrated in the southwest region, and land wind power is concentrated in the northeast, north and northwest regions. In order to optimize the layout of energy development, the “Twelfth Five-Year Plan†outline clearly stated that it is necessary to increase the level of local processing and conversion of energy, relieve the pressure on large-scale long-distance transportation of primary energy, and plan to build large-scale coal and electric power bases in northern Shaanxi, Shendong, and Xinjiang. Therefore, whether it is to adjust and optimize the energy structure or optimize the layout of energy development, the key lies in improving the ability of the power grid to optimize the allocation of energy resources in a wide range. It is imperative to increase the application of advanced technologies such as UHV transmission to meet the needs of large-scale energy base construction and the elimination of large amounts of clean energy. This is an urgent task for implementing the national energy strategy.
Aspect Two: Development of Smart Grid
The original report: Strengthen the use of energy management, the development of smart grids, the implementation of energy-saving power generation scheduling and other effective management methods.
Interpretation: Building a smart grid is an effective means to improve energy regulation and utilization efficiency. Smart grids with information, automation, and interactive features are closely related to energy conservation and environmental protection, high-end equipment manufacturing, and new energy vehicles. They are important support for China's strategic emerging industries and have a low-carbon economy and clean energy development. The important supporting role has become the development trend of the world power grid.
However, unlike developed countries such as Europe and the United States, China is advancing the use of energy intensively and efficiently, and the development of smart grids can precisely meet the needs of large-scale energy bases, especially new energy intensification.
Aspect 3: Promoting Electricity Price Reform
The original report: To further promote the strategic adjustment of the state-owned economy. We will steadily advance the reform of electricity prices, implement the residents' ladder price reform plan, and improve the pricing mechanism for hydropower, nuclear power, and renewable energy. Gradually rationalize the coal price relationship. Study and promote the reform of railways, electricity and other industries.
Interpretation: At present, China has not yet formed an energy price system that effectively reflects market supply and demand, resource scarcity and reasonable production costs. The overall low energy price level is not conducive to regulating demand, energy conservation and emission reduction. The price-to-price ratio of different types of energy products is unreasonable, and the price level of electricity is 20%~60% lower than that of crude oil, coal and other energy sources. Due to the coexistence of market pricing and government pricing and the lack of an effective price transmission mechanism, the contradiction between market coal and planned electricity has become increasingly prominent. This year, the overall level of domestic prices is expected to remain basically stable, providing room for reforms such as rationalizing the price of coal and electricity and implementing residents' ladder prices.
The power reform has already gone through more than 10 years. At present, it is necessary to comprehensively review the reform of China's power industry and speed up the development of ideas for electricity development that are conducive to accelerating the transformation of energy development methods, promoting scientific development of electric power, and effectively guaranteeing national energy security. Promoting electricity price reform and improving the price mechanism during this period will probably become an important breakthrough in deepening reforms.
Aspect 4: Strengthen rural network construction
The original report: Strengthening rural infrastructure such as water and electricity, and continuing to improve rural production and living conditions.
Interpretation: The energy use potential in rural areas in China is very large, but the rural power system is more complex. Due to policy reasons, the rural power grid lacks a sustainable input mechanism for a long time. Although the state continues to increase the intensity of construction and transformation, there are still a few areas where rural power grids are still unsatisfactory, the power supply facilities are aging, and the power supply capacity and safety level are poor. The power management system has not been straightened out. With the acceleration of urbanization, improving rural infrastructure has become an important part of safeguarding people's livelihood. It requires the state to issue complete solutions for the development and management of rural electric power, improve supporting policies, and increase rural investment in fiscal investment, loans, and taxes. Support for development has been established to establish a sound rural power sustainable development mechanism.
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