Green power trading, open!
2021-09-15: [Original Article Link].
The green power deal is here! A few days ago, the National Development and Reform Commission and the National Energy Administration formally wrote to the State Grid Corporation and China Southern Power Grid Corporation to promote the pilot work of green power trading (hereinafter referred to as "green power trading"). Sep 7, green electricity trading pilot launching of the 17 provinces in 259 The Market Main body participation first a total turnover of nearly 8 billion over the course of the power.
What is a green electricity deal? How is it different from the general electricity deal? What is the role of green power trading in China's realization of the "dual carbon" goal?
"We are in Shanghai of 5 factories procurement nearly 170,000 over the course of the green power to satisfy their 2022, du 88% per cent of the electricity demand." Schneider Electric was one of the first companies to participate in the pilot green electricity transaction. Zhang Kai, senior vice president of the company, told our reporter that through the new power trading platform of the State Grid, Schneider purchased a batch of green power from a photovoltaic supplier in Ningxia. After the completion of the transaction, Schneider Shanghai of the 5 factories expected ahead of 2022, net-zero carbon emissions targets.
The country's first green power transaction pilot, which has just been launched, has been welcomed by many electricity purchase and electricity sales companies.
What is a green electricity deal? Shi Lianjun, general manager of Beijing Electric Power Trading Center, explained that green power trading is a new trading variety established within the framework of the medium and long-term power market system. "Simply put, users can purchase new energy power such as wind power and photovoltaics through power transactions, consume green power, and obtain corresponding green certification."
In the existing power market, the trading of conventional power sources such as thermal power is more common, and a more mature trading mechanism has been formed. Why do you want to implement green electricity transactions?
"The power market-oriented transactions carried out in the past only reflect the value of electric energy. Even if there is new energy power generation, the environmental value is covered up." Shi Lianjun said that compared with coal-fired and other fossil energy power generation, the power provided by new energy sources such as wind power and photovoltaic power generation not only has power value, but also has environmental value due to cleanliness and zero emissions. "The core of the major innovation in the mechanism of green power trading is to give full play to the role of the market. This is a new starting point that will open a new model of green power consumption in China."
At present, the green and low-carbon transformation of energy has become the consensus of both power generation and electricity consumption. On the demand side, many enterprises have proposed to achieve the goal of 100% green power production, and some traditional industrial enterprises are also looking forward to using green power production to promote transformation and upgrading.
"At present, in addition to high-tech enterprises, there are a large number of high-energy-consuming enterprises in addition to high-tech enterprises." Zeng Ming, director of the Energy Internet Research Center of North China Electric Power University, told our reporter that under the "dual carbon" goal, the energy consumption pressure of high energy-consuming enterprises has increased. The use of non-green energy will result in a large amount of carbon emissions, and enterprises will have to bear the corresponding compensation. Therefore, high-energy-consuming companies often have a demand for green electricity.
From the perspective of the energy supply side, participating in green electricity trading will help expand the market and gain revenue.
With the new energy into the "parity" era, enterprises gradually get rid of the dependence on government subsidies, but the new energy instability, strong random volatility and other characteristics of outstanding, in order to promote the consumption of new energy, enterprises need to build or purchase energy storage and other regulatory resources to reduce power fluctuations, resulting in investment return pressure.
"With the Green Power Market, the power generation side, that is, the seller, can find users in need and sell the electricity to them. While expanding the market, it also reduces the probability of abandoning the wind and abandoning light." Zeng said.
The relevant person in charge of the Economic Reform Department of the National Development and Reform Commission said that through the development of green power transactions, some users who are willing to assume more social responsibilities will be distinguished and directly traded with wind power and photovoltaic power generation projects, guiding green electricity consumption in a market-oriented manner reflects the environmental value of green electricity. The generated green power revenue will be used to support the development and consumption of green power and better promote the construction of new power systems.
"Green power gives priority to the organization, priority arrangement, priority implementation and settlement in the power market transaction and grid dispatch operation, and through relevant policies and measures to stimulate the enthusiasm of the electricity side to purchase green power." According to the relevant person in charge of the system Reform Department of the National Development and Reform Commission, the market entities participating in green power trading are mainly wind power and photovoltaic power generation in the near future, and will gradually expand to hydropower and other renewable energy sources in the future. "Green power transactions give priority to green power with full market-oriented access. If some provinces are fully market-oriented in the initial stage of the market, the scale of green power is limited, consideration could be given to purchasing government subsidies and green electricity from grid companies."
"'One Netcom Office 'means that users can log in to enjoy green power transaction declaration, transaction information acquisition, settlement result query, green power consumption certification and other one-stop services." Shi Lianjun said that "three all three exemptions", that is, to gather power grid enterprises, power generation enterprises, power users and electricity sales companies and other market entities; Covering the whole business scope of provinces and provinces, wholesale and retail; covers direct trading of green power, grid enterprise agent trading, renewable energy consumption voucher trading and other all green electricity trading varieties. Provide green electricity trading services that are free of duplicate registration, free of charge and green consumption certification for market entities.
On the "e-transaction" APP, the reporter browsed and found that two categories of "electricity sales intention" and "purchase intention" were set up in the "market" menu bar of the homepage, ranking according to the transaction intention, these two column pages show information such as the types of electricity sold and purchased by electricity companies, the guidance of electricity prices and the purchase of electricity. With just the movement of your finger, you can realize the transaction on your mobile phone.
Compared with general electricity, how much is the price of green electricity? Data show that the first batch of green electricity trading price than the local electricity long-term trading price premium of 0.03-0.05 yuan/kWh. "The electricity price of green electricity is relatively high, but it contains high environmental value and is conducive to maintaining a greener Earth. This development trend is consistent with our purpose." Open Peng said.
The results of the preliminary survey conducted by the National Development and Reform Commission and relevant departments also show that although the price of green electricity is slightly higher than that of general electricity, most enterprises are still very motivated to carry out green electricity transactions. Many enterprises said, willing to pay extra for the environmental properties of green power.
The results of the transaction are the most direct reflection of market attitudes. Sep 7, the first batch of green electricity trading pilot reach a deal power 7.935 billion over the course of the month. Wherein, State Grid Corporation of China (SGCC) operation area transaction amount of 6.898 billion over the course of the month, China Southern Power Grid Company operating regions transaction amount of 1.037 billion over the course of the month. According to statistics, this transaction is expected to reduce the standard coal burning 2.436 million tons, emission reduction carbon dioxide 6.0718 million tons.
After the user completes the green electricity transaction, he can obtain the corresponding green certification, and as a green indicator, it can be traded in the market. So, how can we avoid selling green electricity and earning a profit from selling green certificates again, resulting in repeated sales or measurement of environmental value?
"Blockchain is a powerful tool for the traceability of green power, and it plays a role of technical support in green power transactions." Zeng Ming explained that green electricity is widely distributed, and the trend on the power grid is a mixture of various electric energy. With the help of blockchain technology, it is possible to identify and record who buys and who sells which type of electricity, and to ensure that market entities trade and settle openly, fairly and fairly, "which is essential for electricity market transactions."
"The good convergence of the three means that there will be more and more types of products and related derivatives in the market. Both the supply and demand sides can trade in different markets according to their own needs." Zeng Ming believes that the effective convergence of the three types of markets is conducive to improving the efficiency and transparency of market transactions and making it easier to carry out market supervision.
"All parties generally believe that it is of great significance for China to take the lead in carrying out green power trading, which not only plays an important supporting role in the implementation of the 'dual carbon target' and the construction of a new power system, and it will provide Chinese solutions for global renewable energy development." The relevant person in charge of the National Development and Reform Commission said that as new energy becomes the main body of the power system, green power trading will play an increasingly important role in the power market system.
"Green power trading is a new thing. To carry out the pilot project of green power trading, we should fully consider the actual situation of China's power grid operation, power structure and market construction, under the framework of the national unified power market, we will do a good job in the overall promotion of the pilot work of green power trading." The relevant person in charge of the National Development and Reform Commission stated that it is necessary to adhere to the principle of consumer voluntariness, give priority to the participation of users with green power needs in transactions, and guide all parties in society to form a consensus on active consumption of green power. "In the future, power grid enterprises will be actively guided to organize and implement green power transactions, and implement priority implementation and priority settlement of green power transactions. Strive to build a trading platform with perfect operational services to attract more users to participate."
Note: This is auto-translated version of an article meant for Chinese audience. A mature and nuanced reading is suggested.