Green power trading, open!

The green power deal is here! A few days ago, the National Development and Reform Commission and the National Energy Administration formally replied to the State Grid Corporation of China and China Southern Power Grid Corporation to promote the pilot work of green power trading (hereinafter referred to as "green power trading"). On September 7, the green power trading pilot was officially launched, with 259 market entities from 17 provinces participating, and the first batch of transactions totaled nearly 8 billion kilowatt-hours of electricity.

What is green electricity trading? How is it different from general electricity trading? What effect does green power trading have on China's realization of the "dual carbon" goal?

Guide green electricity consumption in a market-oriented way

"We purchased nearly 170,000 kilowatt-hours of green power for five factories in Shanghai, which can meet 88% of their electricity demand in 2022." Schneider Electric is one of the first companies to participate in the pilot green power transaction. The company’s senior vice president Zhang Kaipeng told our reporter that Schneider purchased a batch of green power from a photovoltaic supplier in Ningxia this time through the newly-built power trading platform of the State Grid. After the transaction is completed, these five Schneider Shanghai factories are expected to achieve the 2022 net zero carbon emission target ahead of schedule.

The country’s first green electricity trading pilot program just launched has been welcomed by many electricity purchase and sale companies.

What is green electricity trading? Shi Lianjun, general manager of Beijing Electric Power Trading Center, explained that green power trading is a brand-new trading product established within the framework of the medium and long-term power market system. "In simple terms, users can purchase wind power, photovoltaics and other new energy power through power transactions, consume green power, and obtain corresponding green certifications."

In the existing electricity 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 we need to implement green power trading again?

"In the past, market-oriented power transactions only reflected the value of electric energy. Even with the participation of new energy power generation, the environmental value was masked." Shi Lianjun said, compared to coal-fired and other fossil energy power generation, wind power, photovoltaic power generation and other new energy sources are provided. The electricity of China not only has the value of electric energy, but also has environmental value because of its cleanness and zero emission. "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 brand new starting point and will open up a new model of green power consumption in China."

Currently, energy green and low-carbon transformation has become the consensus of both power generation and electricity consumption. On the demand side, many companies have put forward the goal of achieving 100% green power production, and some traditional industrial companies also look forward to using green power production to promote transformation and upgrading.

"At present, users who are willing to buy green power, in addition to high-tech companies, there are also a large number of high-energy-consuming companies." Zeng Ming, director of the Energy Internet Research Center of North China Electric Power University, told our reporter. Increased pressure on energy use. The use of non-green energy will cause a large amount of carbon emissions, and companies need to bear corresponding compensation. Therefore, high-energy-consuming companies often have a demand for green power.

From the perspective of energy suppliers, participating in green power transactions will help expand the market and gain revenue.

As new energy enters the era of "parity", enterprises are gradually getting rid of dependence on government subsidies, but new energy is characterized by instability and strong random volatility. In order to promote the consumption of new energy, enterprises need adjustments such as supporting construction or purchasing energy storage. Resources to reduce power fluctuations, etc., resulting in pressure on investment returns.

"With the green power market, the power generation, that is, the power seller, can find users in need and sell the electricity to them. While expanding the market, it also reduces the probability of abandoning wind and solar power." Zeng Ming said.

The person in charge of the Department of Economic Restructuring of the National Development and Reform Commission stated that through green power trading, some users who are willing to assume more social responsibilities will be distinguished, and they will directly trade with wind power and photovoltaic power generation projects, and guide green power consumption in a market-oriented way. The environmental value of green power. The green power revenue generated will be used to support the development and consumption of green power, and to better promote the construction of new power systems.

Convenient transactions, multiple market entities can participate

How is green power traded? Which market players can participate?

"Green power is organized, arranged, executed, and settled first in the power market transaction and grid dispatching operation, and through relevant policies and measures to encourage the enthusiasm of the power user to purchase green power." The relevant person in charge of the National Development and Reform Commission's System Reform Department introduced and participated The main players in the green power trading market are wind power and photovoltaic power generation in the near future, and will gradually expand to other renewable energy sources such as hydropower in the future. "Green power transactions give priority to the arrangement of fully market-oriented green power. If some provinces have a limited scale of fully market-oriented green power at the beginning of the market, they can consider purchasing government subsidies and guaranteed green power purchases from power grid companies."

In order to facilitate transactions, the State Grid Corporation of China has developed a unified service platform for the "e-transaction" power market to provide green power trading services of "one network, three all and three exemptions".

"One-stop-shop" means that users can log in to enjoy one-stop services such as green electricity transaction declaration, transaction information acquisition, settlement result query, green electricity consumption certification, etc." Shi Lianjun said, "Three Alls and Three Frees", that is, convergent power grid enterprises , Power generation companies, power users, and power sales companies; covering the entire business scope of the province and inter-province, wholesale and retail; covering green power direct transactions, grid enterprise agency transactions, renewable energy consumption vouchers, and other all-green Electronic trading products. Provide market entities with green electricity trading services that are free of repeated registration, free of transaction fees, and free of green consumption certification.

On the “e-transaction” APP, the reporter found that two categories of “electricity sales intention” and “electricity purchase intention” were set up in the “market” menu bar on the homepage. According to the ranking of transaction intentions, the two columns displayed electricity sales respectively. , Electricity purchase enterprise's electricity category, guide electricity price and minimum purchase electricity quantity and other information. Just move your finger to make a transaction on your mobile phone.

Compared with ordinary electricity, how much is the price of green electricity "expensive"? The data shows that the price of the first batch of green electricity transactions is 0.03-0.05 yuan/kWh premium to the local mid- and long-term electricity transaction price. "The electricity price of green power is relatively high, but it contains high environmental value, which is conducive to maintaining a greener earth. This development trend is in line with our purpose." Zhang Kaipeng 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 power is slightly higher than that of general power, most companies still have a high degree of enthusiasm for green power transactions. Pay additional fees.

The result of the transaction is the most direct reflection of the market's attitude. On September 7, the first batch of pilot green power transactions reached 7.935 billion kilowatt-hours of electricity. Among them, the electricity volume in the operating area of ​​State Grid Corporation of China was 6.898 billion kWh, and the electricity volume in the operating area of ​​China Southern Power Grid was 1.037 billion kWh. According to statistics, this transaction is expected to reduce the burning of standard coal by 2.436 million tons and the emission of carbon dioxide by 6.0718 million tons.

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