With the head of China's power watchdog, the State Electricity
Regulation Committee, smiling as he rang a gong, China's second
simulated regional power market went online in Shanghai on Tuesday.
The event was another big step toward marketization of the electric
power sector.
In this phase, the simulation will include market registration,
monthly offers, transaction listings, information release and
regulation programs. A total of 171 power generators, with a
combined installed capacity of 43.4 million kW in 59 power plants,
are participating in the simulation.
Based on the east China power grid, the simulated market will
cover the commercial hub of Shanghai and the four adjacent
provinces of Zhejiang,
Jiangsu,
Anhui
and Fujian.
The simulations are part of the response to an earlier
government circular calling for acceleration of reform in the
monopoly sectors. Market access restrictions will gradually be
loosened and competition introduced.
Just four months ago, the nation's first power market simulation
began in the northeast power grid, where the provinces of Heilongjiang,
Jilin
and Liaoning
form one of the country's largest industrial bases.
"Power marketization is in line with the general requirement to
build a sound socialist market economy. This reform enables
coordination between the power sector and other sectors," said Chai
Songyue, director of the State Electricity Regulation
Committee.
Turnover was 3.3 billion kWh in the first peak hour and 1.2
billion kWh in the first valley hour. The figures indicate that the
simulation was launched successfully.
Provincial power companies in the region will buy electricity on
the regional power transaction platform.
Contracts now are mainly year- or month-based. With the updating
of technical support, daily and real-time contracts will be
available, according to the operation staff.
"Only by deepening the reform can the power sector achieve
comprehensive, coordinated and sustainable development," said
Chai.
(Xinhua News Agency May 19, 2004)