Analysis on Priority Power Generation and Purchase After the Reform of Coal-Fired Electricity Price in China

Abstract

Chinese government has just liberalized the coal-fired electricity price and industrial and commercial catalogue electricity price in 2021, which will prompt fully liberalization of power generation and utilization plans. This paper analyzes the composition of power generation and users after coal-fired electricity price reform, summarizes four scenarios of relationship between priority power generation and purchase in different provinces, considering power grid agency. Then, three schemes of matching solutions for priority generation and purchase are purposed. Taking into account the practicality and stability of electricity reform, the surplus priority power generation can be distributed to power grid agency users at this stage. In the future, the surplus inter-provincial priority generation need to be distributed to all industrial and commercial users to maintain market fairness.