State Grid: Will actively implement mixed ownership reform and promote the construction of a unified national electricity market

Release time:

2021-05-17

[Cable Network News] Recently, the State Grid Corporation issued Document No. 1 of 2020, the "Opinions of the State Grid Corporation on Comprehensively Deepening Reform and Striving to Overcome Breakthroughs" (hereinafter referred to as the "Opinions"), emphasizing that it is necessary to closely focus on the strategic goal of "three-type two-network, world-class", with the creation of a new business system of "two-network integration" as the main axis, and strive to promote the "three major reform breakthroughs" (mixed ownership reform, group management system reform, and power market construction), improve service capabilities, strengthen compliant operation, uphold integrity and innovation, assume responsibility, improve quality and efficiency, and accelerate the construction of a world-class energy Internet enterprise, to better serve the realization of the "two centenary goals"

Recently, the State Grid Corporation of China issued Document No. 1 of 2020, the "Opinions of the State Grid Corporation of China on Comprehensively Deepening Reform and Striving for Breakthroughs" (hereinafter referred to as the "Opinions"), emphasizing that it is necessary to closely focus on the strategic goal of "Three-Type and Two-Network, World-Class", take the creation of a new business system of "Two-Network Integration" as the main axis, strive to promote the "Three Major Reform Breakthroughs" (mixed ownership reform, group management system reform, and power market construction), enhance service capabilities, strengthen compliant operation, uphold integrity and innovate, take responsibility and act, improve quality and efficiency, accelerate the construction of a world-class energy Internet enterprise, and better serve the realization of the "Two Centenary Goals".

The "Opinions" pointed out that the main goals of the reform are: by the end of 2020, to promote the implementation of the new business system of "Two-Network Integration", promote the initial establishment of the system and mechanism for new business development, comprehensively promote the construction of the ubiquitous power Internet of Things, and effectively reflect its value; the headquarters' responsibilities will be more scientific and reasonable, and a group control model with classified empowerment, equal rights and responsibilities, flexibility and efficiency, and collaborative sharing will be basically established; the mixed ownership reform will be accelerated in a wider range and at a higher proportion, breakthroughs will be achieved in attracting strategic investment, attracting capital, and building mechanisms, and a new situation of win-win cooperation will emerge; promote the accelerated construction of a unified national electricity market and the coordinated operation of two-level spot markets, effectively exert the role of the market in allocating resources on a large scale, achieve independent and standardized operation of trading institutions, and gradually improve the company's operating mechanism that adapts to marketization and regulatory requirements; further release the dividends of reform, continuously improve the business environment, and basically form an ecological system of jointly planning reform, jointly promoting development, and sharing results.

The "Opinions" put forward key tasks in six aspects.

First, innovate the business development system of "Two-Network Integration". Promote the transformation and upgrading of power grid development methods and management models, implement precise investment in accordance with the principles of "ensuring safety, improving efficiency, and increasing benefits", and promote the transformation of power grid development methods from scale expansion to stable operation. Accelerate the construction of the ubiquitous power Internet of Things, promote the construction of an energy Internet industry chain, create a mutually beneficial and win-win new energy ecosystem, further improve the efficiency of all links in the power system, strengthen government-enterprise linkage, take the construction of new smart cities as the carrier, gather the power of the whole society to build the ubiquitous power Internet of Things, and iteratively build a corporate mid-stage and smart IoT system. Carry out comprehensive demonstration pilots and give full play to the value of the ubiquitous power Internet of Things. Accelerate the cultivation of emerging industries of "Two-Network" integration, based on strategic emerging industries such as comprehensive energy services and energy storage, strengthen technological, management and business model innovation, and cultivate new growth drivers. Give play to the driving role of scientific and technological innovation, strengthen basic and forward-looking research layout, focus on cutting-edge technologies such as 5G, artificial intelligence, and blockchain, carry out centralized tackling of key problems, build a standard system, promote industrial application, and deepen the construction of the national dual-innovation demonstration base.

Second, actively implement mixed ownership reform. Explore the diversified reform of power grid business equity, further promote the introduction of strategic investment in UHV DC, actively introduce private capital to participate in incremental distribution network pilot projects, and continue to promote pumped storage mixed reform. Vigorously implement market-oriented business mixed reform, effectively stimulate enterprise vitality, improve efficiency and benefits through high-quality introduction of strategic investment, reform of the system, and construction of mechanisms, and vigorously implement industrial unit mixed reform to achieve complementary advantages and transform the operating mechanism.

Third, promote the reform of the group management system. Accelerate the improvement of the modern enterprise system, improve the company's system system, transform institutional advantages into governance effectiveness, and effectively play the role of the board of directors and the board of supervisors. Optimize the headquarters structure and powers and responsibilities, combine with the special rectification of the "headquarters organ", clarify the functional positioning of the headquarters, strengthen effective coordination between departments, and reduce the headquarters' approval items. Transform the group control model, continue to deepen the "delegation of power, management and service" reform, further stimulate the vitality of the grassroots, dynamically optimize the list of authorized items according to different industrial characteristics, expand the scope of pilot projects for business authorization, innovate the development model of international business, and promote the integration of investment, construction and operation to go global. Improve the market-oriented operating mechanism, and in the field of competitive business, increase the market-oriented selection and employment of professional managers. Accelerate the creation of world-class demonstration enterprises, give play to the innovative exploration and pilot role of typical leading units, actively benchmark against world-class enterprises, and achieve breakthroughs in key areas and key links.

Fourth, actively promote the construction of a unified national electricity market. Accelerate top-level design research, propose construction plans and implementation paths, and promote the optimal allocation of electricity resources nationwide. Gradually sort out cross-subsidies, further deepen the transmission and distribution price transmission mechanism of inter-regional, regional and provincial power grids, and promote the orderly connection between transmission and distribution prices and the electricity market. Accelerate the independent and standardized operation of trading institutions, comprehensively complete the joint-stock reform of trading institutions, and improve the level of standardized operation. Promote trading institutions to give full play to their platform role and establish an efficient and coordinated operating mechanism with power grid business. Establish a new operating management mechanism adapted to the electricity market, optimize business processes such as power grid construction, operation and maintenance, and dispatch operation, and establish a new marketing service model adapted to the opening of the retail side.

Fifth, improve the ability and level of serving customers. Reduce the cost of energy use for the real economy, implement national tax and fee reduction policies, promote the improvement of time-of-use electricity price policies, establish a peak load avoidance compensation mechanism, encourage users to actively cut peaks and fill valleys, and reduce the overall cost of energy use for users. Innovate power supply service models, fully implement sunshine power expansion, improve the information disclosure mechanism, further optimize power application processes, continuously optimize the power business environment, comprehensively promote grid-based comprehensive services, and strongly support reliable power supply for distribution networks and high-quality customer service. Accelerate the development of comprehensive energy services, focus on service areas such as comprehensive energy efficiency, multi-energy supply, clean energy, and emerging energy use, optimize and improve the business development layout, strengthen core capacity building, and create value for customers.

Sixth, improve the system and mechanism adapted to supervision. Improve the business classification and development mechanism, study and establish a mechanism for effective utilization of resources, reasonable allocation of costs, and effective separation of businesses, strictly regulate related transactions, create a fair market environment, and rely on the construction of "Three-Type and Two-Network" to realize the digitization of energy flow and business flow in power production, transmission and use.

The "Opinions" emphasized that it is necessary to strengthen organizational leadership, strengthen compliance with laws and regulations, conduct in-depth supervision and evaluation, and maintain safety and stability. It is necessary to fully recognize the special importance and practical urgency of comprehensively deepening reform, strive to promote reform and achieve comprehensive breakthroughs, and make greater contributions in continuously promoting supply-side structural reform, achieving "stable growth, adjusting structure, and benefiting people's livelihood", and supporting high-quality economic development.

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