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2022

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07

Have you ever heard of colored electricity?

Author:


Utilizing specific power generation equipment, such as wind turbines and solar photovoltaic cells, to convert renewable energy such as wind and solar energy into electricity. The electricity generated through this method does not produce or rarely produces harmful emissions to the environment (such as nitric oxide, nitrogen dioxide, greenhouse gas carbon dioxide, sulfur dioxide that causes acid rain, etc.) during the power generation process, and does not require the consumption of fossil fuels, saving limited resource reserves.

01

What is green electricity?

 

 

  Utilizing specific power generation equipment, such as wind turbines and solar photovoltaic cells, to convert renewable energy such as wind and solar energy into electricity. The electricity generated through this method does not produce or rarely produces harmful emissions to the environment (such as nitric oxide, nitrogen dioxide, greenhouse gas carbon dioxide, sulfur dioxide that causes acid rain, etc.) during the power generation process, and does not require the consumption of fossil fuels, saving limited resource reserves.

  Compared to conventional thermal power generation derived from fossil fuels such as coal, oil, and natural gas, the use of fossil fuels to obtain electricity is more conducive to environmental protection and sustainable development. Therefore, it is called green electricity.

  Green electricity includes wind power, solar photovoltaic power, geothermal power, biomass gasification power, small hydropower, etc.

  Green Power Certificate - abbreviated as Green Certificate, refers to an electronic certificate with a unique code identification issued by the National Energy Administration's Renewable Energy Generation Project Information Management Platform based on the online electricity consumption of green power such as wind power and photovoltaic power, in accordance with relevant national management regulations.

  Green power trading refers to the process of electricity users or selling companies and green power generation enterprises synchronously conducting medium to long-term electricity trading and green certificate subscription trading in accordance with rules.

  02

  National policies related to green electricity

  01

  The National Development and Reform Commission released the "Implementation Plan for Promoting Green Consumption" on January 21

  Article 10 clearly states that "further stimulate the potential for green electricity consumption in the entire society". The key points are as follows:

  Firstly, "regions with strong economic capacity will gradually increase the proportion of green electricity consumption" (green electricity has a premium compared to conventional electricity, and the premium may exist for a long time).

  Secondly, "strengthening the rigid constraints on the use of green electricity by high energy consuming enterprises" (- High energy consuming industries are expected to become one of the main sources of green electricity consumption in China in the future, helping to expand and increase the price of green electricity).

  Thirdly, after consuming green electricity, priority can be given to ensuring "demand side management", which is particularly suitable for users who do not exceed energy consumption control standards but have extremely high requirements for power supply stability, which is conducive to increasing and expanding the demand for green electricity.

  02

  Notice of the National Development and Reform Commission on the Comprehensive Work Plan for Energy Conservation and Emission Reduction during the 14th Five Year Plan period

  Key points: Promote energy conservation and emission reduction, deepen the battle for pollution prevention and control, accelerate the establishment and improvement of a green, low-carbon, circular development economic system, and promote comprehensive green transformation of economic and social development.

  Among them, policies related to green electricity

  Firstly, promote the substitution of electric energy from blast furnaces to electric furnaces in the steel industry;

  Secondly, improve the energy dual control policy, strengthen energy intensity constraints, and increase the elasticity of total energy consumption;

  Thirdly, we need to strengthen the coordination between electricity pricing policies and energy conservation and emission reduction policies, continuously improve green electricity pricing mechanisms such as tiered electricity prices in high energy consuming industries, expand the scope of implementation, increase implementation efforts, and lower the electricity prices of backward "two high" enterprises.

  03

  On January 28th, the National Development and Reform Commission issued the "Guiding Opinions on Accelerating the Construction of a National Unified Electricity Market System"

  Key points: By 2025, a "market trading and pricing mechanism conducive to the development of new energy, energy storage, and other industries" should be established.

  Firstly, by 2025, a unified national electricity market system will be established, forming a market trading and pricing mechanism conducive to the development of new energy, energy storage, and other industries.

  Secondly, establish a market-oriented mechanism for the allocation and transaction of transmission rights across provinces and regions, and maximize the utilization of the wealth channel between provinces and regions. The cross provincial and cross regional trading mechanism is conducive to smoothing out the price depression of green electricity in the central and western regions, and achieving optimal allocation of green electricity resources nationwide.

  Thirdly, establish a cost recovery mechanism for power generation capacity, explore various methods such as capacity compensation mechanisms, capacity markets, and scarce electricity prices.

  03

  Trading of Green Electricity Market and Its Current Situation

 

 

  It is reported that the green power trading pilot project in China was officially launched in September 2021, with a total of 259 market entities from 17 provinces participating on that day, resulting in a trading capacity of 7.935 billion kilowatt hours. In 2022, medium - and long-term green power trading rose significantly with the rise of coal and electricity prices, exceeding market expectations. The results of mid to long-term electricity marketization transactions in 2022 showed that the average transaction price of green electricity in Jiangsu Province was 462.88 yuan/megawatt hour, slightly lower than the average transaction price of coal electricity, with an increase of 18.39% compared to the benchmark electricity price. The average transaction price of green electricity in Guangdong Province was 513.89 yuan/megawatt hour, higher than the average transaction price of coal electricity, with an increase of 13.4% compared to the benchmark electricity price. Compared with the slight discount of green electricity in Jiangsu Province compared to coal electricity, the further premium of Guangdong green electricity is more in line with market-oriented trading and the "green" value normal of green electricity. Due to the fact that renewable energy generation has no marginal cost and the main cost is fixed depreciation, the increase in electricity prices can significantly improve profitability.