The first batch of 37 companies directly purchased cheap electricity

37 power companies including China National Heavy Duty Truck and Qilu Pharmaceutical, which applied for participating in the pilot program for direct electricity trading in 2014, passed the review and public announcement and were identified as pilot users of direct electricity trading. At this point, our province's power users and power generation companies that participated in the trials of direct electricity trading this year have all confirmed that both parties will sign a contract for direct electricity trading by the 28th of this month.

Earlier, the Shandong Energy Supervision Office of the National Energy Administration disclosed that 84 units of 32 power plants in our province were publicly audited and allowed to participate in this year's direct power supply pilot project. The total capacity of the 84 generating units is 35.52 million kilowatts.

According to the "Shandong Province Power Users and Power Generation Companies Direct Trading Pilot Work Program," the province has taken out 10 billion kwh of electricity each year for direct transactions, and temporarily adopts an annual contract trading model. The electricity purchase price of electricity users consists of direct transaction transaction electricity prices, transmission and distribution prices, government funds, and additional components; among them, the direct transaction transaction electricity prices are determined by the electricity users and power generation enterprises through negotiation, and the transmission and distribution prices are determined by the national price authority.

“The direct electricity trade is a win-win situation. Power generation companies and power users can negotiate directly for direct power trading, determine their own power, electricity prices, etc., and then entrust power companies to deliver power to users.” Fu Mingshi, assistant to General Manager of State Power Shandong, said that reforms The key to trading is the introduction of competition.

At present, the on-grid tariffs vary among power generation companies in Shandong, and are generally at 0.43 yuan/kWh, while terminal industrial power consumption is about 0.8-1 yuan/kWh. If it is a direct power supply, deduction of various costs, electricity companies can save five or six cents per kilowatt-hour. At the same time, for power generation companies, those that could not be sent before and that have direct access to purchase channels will have new sources of stable benefits.

"The direct trading of power users with power generation companies increases the number of market competitors, which helps companies and power plants respond quickly to prices and improve the efficiency of power grid operation," said Zhang Li, a professor at the School of Electrical Engineering of Shandong University.

In order to steadily advance pilot projects for direct electricity trading, the province’s users who have participated in pilot projects for direct electricity exchanges this year were temporarily executed by “users with 110 kilovolts and above”, canceling “the electricity consumption for the entire year at 50 million kwh and above. Power supply for special transformers or dedicated lines at voltage levels of 10 kV and above, no enterprise-owned power plants, and direct supply users". At the same time, the limitation of “limiting each user’s trading power to no more than 10% of all direct transaction power” is temporarily suspended. In the next step, the selected conditions for the voltage rating of pilot companies will be gradually relaxed with the adjustment of national policies.