Polaris Power Sales Grid News: Guangdong Electric Power Trading Center released the "Guangdong Electric Power Market 2019 Annual Report》 (hereinafter referred to as the "Report") shows that in 2019, GuangdongElectricity MarketThe cumulative settled electricity volume was 195.86 billion kWh, an increase of 26% year-on-year; the social power generation cost was reduced by 1.35 billion yuan, and the cumulative electricity cost was saved by 7.84 billion yuan; the average transaction price difference was -40.2 cent/kWh, and the average kilowatt-hour cost was 0.43 cents; coal consumption was saved by 1.691 million tons, and carbon dioxide emissions were reduced by 4.499 million tons.

The report shows that as of the end of 2019, 18,100 market entities obtained market access qualifications, an increase of 87.6% over the end of the previous year, and 10,752 participated in market transactions. Among them, among the market entities that have obtained access,Electricity sales companyThere were 436 companies, 95 power generation companies (including nuclear power and retired units), 776 large users, and 16,793 general users, an increase of 5.8%, 9.2%, 0.4%, and 100.5% year-on-year respectively.

In terms of medium- and long-term power market, in 2019, Guangdong had a total of 214.94 billion kWh of transactions and the market electricity volume was 195.86 billion kWh. Among them, the total transaction volume of annual bilateral negotiations, annual centralized competition, and monthly centralized competition was 195.03 billion kWh, an increase of 24.1% year-on-year, with an average transaction price difference of -40.2 cent/kWh; in the secondary market, the total transaction volume of power generation contract transfer was 19.91 billion kWh, and the average transaction price was 325.5 cent/kWh.

In terms of the retail market, as of the end of 2019, there were 134 power sales companies that actually participated in the transaction, and the market share and profit share of various power sales companies were significantly different. There are a total of 10,533 power users participating in the transaction, of which 10,530 are agents through power sales companies, accounting for 99.97%.

The report pointed out that in 2019, the supply-side settlement concession was 7.88 billion yuan, and the average price difference was calculated based on the total electricity in the settlement market was -40.2 cents/kWh; the net income of users (including users of the wholesale market and users of the retail market) was 6.69 billion yuan, and the average price difference was -34.2 cents/kWh based on the total electricity in the settlement market was 2.13 billion yuan; the net income of the power sales company was 1.13 billion yuan (of which the price difference electricity bill was 1.17 billion yuan and the assessment fee was 40 million yuan), and the average price difference was calculated based on the total electricity in the settlement market was -5.8 cents/kWh.

It is understood that the Southern (starting from Guangdong) power spot market was the first in the country to carry out settlement trial operation, and entrusted the General Institute of Electrical and Regulations as a third-party neutral institution to carry out the first third-party evaluation of the domestic power spot market. At the same time, two rounds of daily settlement trial operation and one round of weekly settlement trial operation were carried out, with a total of 13 days of trial operation.

In response to the problems existing in the actual operation of the three spot settlement trial runs in 2019, the report pointed out that a mechanism for market blocking surplus distribution has been established to achieve balance of settlement funds for trial runs; a power-side cost subsidy mechanism has been established, and under the conditions that the mechanisms such as auxiliary service transactions and fixed cost recovery have not yet been sound, high-cost units such as gas and conventional coal-fired units have been bidding on the same stage.

On the power sales side, the 2020 balanced settlement mechanism avoids structural losses caused by the difference in the electricity price of the annual price difference contract to absolute price settlement in the trial operation transition stage, which avoids structural losses caused by the difference in electricity prices of users; establishes a medium- and long-term curve decomposition mechanism for the price difference, and uniformly adopts the historical curve decomposition method to avoid losses caused by inaccurate curve decomposition of power sales companies during the trial operation, and provides guarantees for market entities to gradually transition to adapt to the spot market.

Regarding the spot pilot and market-oriented reform of electricity, the report pointed out that the Guangdong power market faces a series of deep-seated problems such as the coexistence of two management models of planning and market management, the interaction between planned electricity prices and market electricity prices, the need to coordinate and balance the market price reduction and construction, and the need to reasonably share the power generation costs of the whole society. As the market scale further expands, the working situation of market construction becomes more and more complicated.