On March.01,2016 the opening ceremony of Beijing Electric Power Trading Center Co., Ltd. (BEPTC) was held in Beijing. This is China’s firstregistered electricity trading organization,which serves as a platform forbroader optimized distribution and operation of energy resources LIU Zhenya, chairmanState Grid Corporation of China (SGCC), inaugurated the new BEPTC. WANG Qiang ,Inspectorfrom National Development and Reform Commission of the People's Republic ofChina (NDRC), and SHU Yinbiao, board member of SGCC, delivered speeches on theconference. Leaders of NDRC, National Energy Administration (NEA) and ChinaElectricity Council (CEC) as well as responsible associates from the majorpower generation groups in Beijing attended the conference.
Afterthe “Suggestion from CPC Central Committee and the State Council on further reformingthe power sector” (NDRC No.9 Document) and relevant documents relating to thereform package were issued, SGCCseriously studied and implemented the central spirit of the reform. SGCC hasalso strongly supported and actively promoted the implementation of the reform.With the support of NDRC and Beijing municipal government, BEPTC completed theapproval and registration in two months and successfully organized transregionaltrading in YinDong DC network.
Asthe major operator of the electricity market, BEPTC aims at promoting fairtrade, stimulate the formation of an effective market mechanism and realizingthe market’s decisive role in allocating resources, leading to the optimizeddistribution of electric power in a broader range and the sustainabledevelopment of the electric power and energy industry.
The founding of BEPTC marks a concrete step of power sector reform. As stated in the NDRC No.9 Document, “To establish relatively independent electric power tradingorganizations and build a fair and regulated trading market platform.” is oneof the major tasks of the power sector reform. According to the document "Opinionson the foundation of electricity trading institutions and norms of tradingoperation", BEPTC will be separated from other business segments of thegrid operators and will be financially independent and self-funding. From theservice aspect it will provide trading services in accordance with market rulesand constitutions approved by the government, complying to the spirit of the officialdocuments and effectively promote the progress of power sector reform.
The founding of BEPTC is the crucial element in forming a fair and effective market structure. The trade of electric power has diverse influencing factors and has high requirements on information and needs to be supervised.The founding of BEPTC will be able to provide a regulated, transparent and informative platform with favorable service to the power generation companies, powerselling companies, users and other major market players. BEPTC will reduce the trading costs while increasing the market efficiency, thus to fulfill the growing demand of electricity trading.
The founding of BEPTC is the inevitable way of implementing the national energystrategy and promoting clean energy. The coal-dominated energy structure andthe method of “local balance” have resulted in severe problems such as smog,excessive CO2 emission and waste of resource. The task of accelerating cleanenergy transformation is arduous and urgent. The clean energy resources in China locate mainly in the southwest and the “three North” area, where the demand is very limited. Therefore, it is essential to optimize the distributionof energy nationwide through larger power grids and trading markets. According to the market principle, BEPTC will optimize the energy allocation and advocate the effective exploitation and utilization of clean energy, thus promoting the clean energy transformation in China.
BEPTC will be market- and customer-oriented and continuously improve the operation mode, working mechanism and business procedure. It will also improve the trading platform, increase operational efficiency, expand tradescale, publish market information, maintain market order and secure thelegitimate interests of major market players.
Results of the transregional trading in YinDong DC network were alsopresented on the conference. The YinDong transregional trading was the firstaction after the foundation of BEPTC. 30 electricity consumers from Shandongmet 824 power generation enterprises from Shaanxi, Gansu, Qinghai and Ningxiaprovinces through the trading platform of BEPTC, during which 9 TWh electricitywere traded. The transregional trading in YinDong DC network demonstrated theadvantages of the transparent, regulated and efficient trading platform.
The transregional trading in YinDong DC network is also the veryfirst time that electricity consumers directly trade with power generationcompanies through transregional DC transmission channels. It marks an importantexploration in shaping the transregional and interprovincial trading mechanism.More than 20 percent of the traded electricity was generated from wind andsolar resources in southwest, which benefited the consumers in the east with cleanand economical electricity from the west and promoted an optimized allocationof energy resource in a large scale in a market-driven approach.