Wang Hongzhi, Secretary of the Party Leadership Group and Director of the National Energy Administration: Anchoring the Goal of Building a Strong Energy Country and Promoting the Reform of Energy Mark

On March 13, Wang Hongzhi, Secretary of the Party Leadership Group and Director of the State Energy Administration, signed an article entitled "Anchoring the Goal of Building a Strong Energy Country and Promoting the Reform of Energy Marketization in the Fifteenth Five-Year Plan Period", which was published in the Learning Times.

The article points out that the "15th Five-Year Plan" period is not only the decisive period to achieve the goal of carbon peak, but also the "15th Five-Year Plan" energy system and mechanism reform of the https://www.databm., which not only shoulders the new mission of building a strong energy country and a new energy system, It is also facing new challenges in coping with the complex international situation and adapting to profound changes in the system. Wang Hongzhi

, Secretary of the Party Leadership Group and Director of the

National Energy Administration, proposed to speed up the construction of a new energy system at the Fourth Plenary Session of the 20th CPC Central Committee. Building a strong energy country is an important decision made by the CPC Central Committee to grasp the general trend of global energy development and implement the new strategy of energy security, and a strategic plan to promote China's high-quality energy development in the new era. The "Fifteenth Five-Year Plan" period is a critical period for the construction of China's new energy system. We must adhere to the organic unity of the effective market and the promising government, deepen the reform of the energy market, speed up the improvement of the market and price mechanism adapted to the new energy system, constantly improve the efficiency of the energy governance system, and broaden the energy development through the innovation of the system and mechanism. To consolidate the institutional foundation and provide strong momentum for the construction of a strong energy country. Since the 18th National Congress of the

Communist Party of China, under the guidance of the new energy security strategy of "four revolutions and one cooperation" put forward by General Secretary Xi Jinping, the reform of China's energy system and mechanism has been deepened, and the reform dividend has been continuously released. A series of landmark achievements have been made in the institutional framework, market system and price mechanism, which will lay a solid foundation for the construction of a strong energy country. The energy system structure of

"controlling the middle and opening up both ends" has been basically established. Several Opinions on Further Deepening the Reform of Electric Power System issued in 2015 and Several Opinions on Deepening the Reform of Petroleum and Natural Gas System issued in 2017 mark the start of a new round of market-oriented reform of electric power and oil and gas in China. After years of efforts, the energy system structure of "controlling the middle and opening up both ends" has been basically established. In the aspect of "controlling the middle", we should continue to improve the cost supervision and pricing methods of transmission and distribution, oil and gas pipeline transportation, and establish a natural monopoly pricing mechanism with equal emphasis on incentives and constraints. Establish the National Petroleum and Natural Gas Pipeline Network Group, integrate and operate the national main oil and gas pipelines, speed up the construction of "one national network", guide natural monopoly enterprises such as power grid and oil and gas pipeline network to focus more on implementing the national strategic plan and fulfilling their social responsibilities, and continuously improve the supervision system of natural monopoly links. In the aspect of "opening up both ends", the market-oriented reform of competitive links in the energy field has been comprehensively promoted, and a market-oriented electricity price mechanism of "being able to rise or fall" has been established. Competitive areas such as power generation, electricity sales, oil and gas exploration, development and sales have been fully liberalized, with more than 5200 registered power selling companies nationwide, more than 50 enterprises entering the upstream exploration and development of oil and gas, more than 3000 participants in the natural gas sales terminal market, and new models of new subjects such as virtual power plants, green power direct connection and smart micro-grid. The establishment of a diversified and symbiotic energy industry ecology has been accelerated. Historic breakthroughs have been made in the construction of the

energy market. The national unified electricity market has been initially established. After 10 years of exploration and practice, China has formed a multi-level, multi-category and multi-functional electricity market structure, with more than 1 million registered operators in the market, and 64% of the total electricity consumption in the electricity market. The electricity spot market is basically fully covered, effectively reflecting the space-time value of electric energy. With the establishment of the southern regional electricity market, the inter-provincial electricity trading mechanism in the Yangtze River Delta has played an important role in effectively breaking the barriers between provinces. The normal trading mechanism across power grid operation areas has been basically established, and the scope of optimal allocation of power resources has been expanding. The national unified "1 + 6" basic rule system has been continuously improved, and the basic system of the electricity market has become more solid. The coal trading market system has been continuously improved. The coordinated development of the national coal trading center and regional coal trading institutions has formed a coal trading platform system covering the whole country, regions and localities. We will improve the medium and long-term contract system for coal and ensure the smooth operation of the coal market. The "X + 1 + X" system of oil and gas market has been initially established. An oil and gas market system featuring multi-subject and multi-channel supply of upstream resources, efficient gathering and transportation through a unified intermediate pipeline network, and full competition in the downstream sales market has been initially formed, and the allocation efficiency of oil and gas resources has been continuously improved, effectively guaranteeing the safe and stable supply of oil and gas. The number of active shippers has increased to hundreds, and the market vitality has increased significantly. The

energy pricing mechanism has been improved at a faster pace. The reform of electricity price has been pushed forward in depth and made many breakthroughs. In the power generation sector, the on-grid price of coal-fired power and new energy is fully marketized, and the fixed price mode is changed to sensitively reflect the relationship between power supply and demand; the capacity price mechanism on the power generation side is established to ensure the adequacy of the reliable capacity of the system. In the transmission and distribution sector, we should establish a transmission and distribution pricing mechanism of "allowable cost + reasonable income", innovate the transmission and distribution price model of single capacity system, and promote the absorption of new energy nearby. In the user sector, the time-of-use electricity price mechanism has been constantly improved to guide users to optimize their electricity consumption behavior. Price reform in the oil and gas sector has achieved remarkable results. We will improve the pricing mechanism of refined oil products and promote the price of refined oil products to better reflect the changes in oil prices in the international market and the domestic supply and demand situation. We will steadily promote the market-oriented reform of natural gas gate station prices, and the proportion of natural gas market pricing will exceed 80%. Establish and improve the linkage mechanism between upstream and downstream prices of natural gas, and steadily straighten out the terminal gas price. We will improve the price mechanism for oil and gas pipeline transportation, innovate and implement the "one area, one price" for trans-provincial natural gas pipeline transportation, and promote the formation of a "national network". The market-oriented pricing mechanism of coal is more perfect. Optimize the medium and long-term market price formation mechanism of coal. The coal price range control policy was introduced to continuously guide the coal price to operate in a reasonable range.

Firm confidence in reform and deeply grasp the new situation and challenges

faced by China's energy market construction. The "15th Five-Year Plan" period is not only a decisive period to achieve the goal of carbon peak, but also a critical period for the construction of a new energy system. The reconstruction of the global energy structure is accelerating, and the competition of energy resources, technology and industry is intertwined and superimposed. The transformation of the old and new energy systems in China is accelerating, and the energy supply structure, consumption mode, organization mode, market form and cost composition are profoundly adjusted. The reform of the energy system and mechanism during the 15th Five-Year Plan period not only shoulders the new mission of building a strong energy country and a new energy system, but also faces the new challenges of coping with the complex international situation and adapting to the profound changes in the system. Market and price mechanism are the "bull nose" of the reform of energy system and mechanism. By giving full play to the decisive role of market allocation of resources, especially the guiding role of price signals, we can achieve the overall coordination of multi-dimensional objectives such as safe supply, green transformation and economic efficiency, which is the only way to build a new energy system and a strong energy country.

To achieve a high level of energy supply security, we need to further improve the energy market mechanism. General Secretary Xi Jinping pointed out that the rice bowl of energy must be in his own hands. Energy is the basic and strategic resource of the national economy, and the energy industry is an important stabilizer to enhance the endogenous power and reliability of the domestic cycle. With the increasing proportion of new energy supply, its randomness, intermittency and volatility significantly increase the instability and complexity of system operation, which is difficult to deal with only by technical or administrative means. We should give full play to the role of price signal "baton", promote the safe, reliable and orderly substitution of fossil energy, and keep the bottom line of energy security. On the one hand, we should smooth the value transmission chain of market-price-investment, guide the investment distribution of various basic and regulatory resources, and lay a solid foundation for reliable energy supply and flexible regulation. On the other hand, the market mechanism and price signals reflect the real supply-demand relationship, effectively promote the high-level coordination of energy supply and demand, and enhance the level of complementarity and security resilience of the energy system.

Accelerating the green transformation and development of energy needs to further improve the energy market mechanism. Unswervingly promoting carbon peak and carbon neutralization is an unshakable strategic measure to build a beautiful China and highlight the unshakable responsibility of a big country. According to the new round of national independent contribution target, China's new energy will double in 2035 on the basis of the current installed capacity of 1.8 billion kilowatts. To ensure super-large-scale new energy access and high-quality absorption, it is necessary to give full play to the traction role of market mechanism in energy transformation. On the one hand, let the market and price mechanism reflecting the value of green environment promote the sustainable growth of new energy, and promote the transformation of new energy development mode from policy guarantee to market drive. On the other hand, through the market mechanism, we can reasonably reflect the multiple values of energy, such as energy supply, reliability and flexibility, promote all links of production and consumption to bear the responsibility of system regulation and transformation costs fairly, and activate the endogenous power of green and low-carbon development of all kinds of subjects.

Accelerating the cultivation of energy

Perfecting the energy market and pricing mechanism is a systematic project and a profound reform of the system and mechanism. We should achieve a dynamic balance among the multiple objectives of energy structure adjustment, system security, economic affordability and social equity, and focus on dealing with three pairs of relationships. First, coordinate the relationship between the government and the market. We should respect market rules, adhere to the direction of marketization, reflect costs and values, and regulate supply and demand through the energy market and price signals. We should also better play the role of the government in planning, rules, standards and the rule of law, strengthen supervision, and form a market environment that is both "flexible" and "manageable".The second is to coordinate the relationship between the whole and the part. We should adhere to the basic requirements of "five unifications and one opening" of the unified national market, deepen the construction of the unified national energy market system, break the local protection and market segmentation, and play a good "national chess game"; we should fully consider the actual situation of various regions and encourage the exploration of market construction paths within the unified institutional framework. Third, we should coordinate the relationship between efficiency and fairness. Adhering to the concept of people first, we should not only optimize the allocation of resources and improve the efficiency of the system in a wider range through market construction, but also create a fairer and more just market environment so that the achievements of energy development can benefit enterprises and the people more.

Bravely shouldering the mission of reform and scientifically planning the key tasks

of energy marketization reform during the "Fifteenth Five-Year Plan" period, the "Fifteenth Five-Year Plan" period is the key period for basically realizing socialist modernization, laying a solid foundation and making full efforts. We should adhere to the combination of effective market and promising government, anchor the strategic goal of energy power, speed up the improvement of market and price mechanism adapted to the new energy system, give full play to the decisive role of the market in the allocation of energy resources, innovate and improve the market price formation and guidance mechanism, and stimulate the endogenous power and innovation of energy transformation and development. To provide a solid institutional guarantee for the construction of a strong energy country.

We will accelerate the establishment of a unified and open national energy market system with orderly competition. We will implement the requirements of a unified national market, deepen the construction of electricity, oil and gas, coal and other markets, strengthen the convergence of cross-energy markets, accelerate the construction of a unified national energy market system, and support the construction of a strong energy country with efficient resource allocation and super-large-scale market advantages. First, deepen the construction of a unified national electricity market. Optimize the realization path of the national unified power market, promote the smooth flow of power resources throughout the country, and enhance the ability of power load staggering, mutual aid of surplus and deficiency and emergency support among provinces and regions. We will further enrich the varieties and functions of the electricity market and promote the leap of the electricity market system from "mainly electric energy" to "fully embodying multi-dimensional values". We will comprehensively build a spot market that can better discover prices and regulate supply and demand, coordinate the functional positioning of the "ballast stone" of the medium and long-term market, the "wind vane" of the spot market and the "regulator" of the ancillary service market, create a standardized, orderly, convenient and efficient power retail market, and give full play to the important role of the power market in supporting the development of the real economy and serving the construction of the new power system. The second is to speed up the construction of oil, gas and coal market system. Continuously improve the "X + 1 + X" oil and gas market system, improve the oil and gas market trading varieties, improve the spot market of refined oil and crude oil futures market, promote the diversification of upstream gas suppliers, explore the establishment of natural gas pipeline network balance and gas storage peak shaving market mechanism, and improve the efficiency of pipeline network operation. Optimize the coal market trading system, improve the functions of the national coal trading center, promote the healthy and orderly development of the multi-level coal trading market, consolidate the performance responsibilities of the parties to medium and long-term coal contracts, and promote the efficient and smooth coal market. The three is to strengthen the convergence of various energy market mechanisms. We will improve the coordination mechanism across energy varieties and explore ways to build a unified and coordinated market system across energy varieties. Promote the coordinated development of electricity market and carbon market, and strengthen the coupling of green electricity green certificate market and carbon market mechanism.

We will build a new energy pricing system featuring market dominance, multiple values, equal rights and responsibilities, incentive compatibility, fairness and reasonableness. To adapt to the new features and trends of the new energy system, we should deepen the price reform of energy competitive links, strengthen the price supervision of natural monopoly links, improve the energy price governance mechanism, and build a high-level new energy price system. First, deepen the price reform of competitive links. We should improve the market price formation mechanism, improve the price transmission mechanism, and better play the role of price signal guidance. Strengthen the price discovery function of the electricity market, continuously optimize the electricity price structure, continuously deepen the market-oriented reform of on-grid electricity prices of various power sources, steadily and orderly promote the formation of electricity energy, capacity and ancillary service prices by the market, improve the market-oriented formation mechanism of inter-provincial and inter-regional power transmission prices, and improve the retail market price mechanism. We will further improve the pricing mechanism for refined oil products and deepen the market-oriented reform of natural gas gate prices. Improve the price formation mechanism of coal market. The second is to improve the price mechanism of natural monopoly links. We will improve the transmission pricing mechanism for trans-provincial and trans-regional special projects and promote the trans-provincial and trans-regional flow of energy resources. Optimize the transmission and distribution price structure of provincial power grids, and gradually straighten out the transmission and distribution prices of different voltage levels. Improve the price mechanism of oil and gas pipeline transportation, and promote the efficiency of pipeline network operation. Third, we should improve the price transmission mechanism with equal rights and responsibilities. We should straighten out the rights and responsibilities of all kinds of subjects in the new energy system, improve the fair price transmission and cost sharing mechanism, and promote full competition among multiple subjects.

We will further strengthen market supervision. Focusing on the new requirements of energy power and new energy system construction, we should further improve the energy laws and regulations system, improve the energy market supervision mechanism, and focus on building a multi-governance, multi-coordination and multi-pronged energy governance system. One is to strengthen the supervision of the energy market. We will improve the legal and regulatory system for energy market supervision to ensure that there are laws and regulations to follow. We should innovate the way of market supervision, strengthen the application of digital and penetrating supervision, establish and improve the normal evaluation and monitoring system, and constantly improve the efficiency of supervision. Strengthen the construction of credit supervision system in the energy industry, build a hierarchical and classified energy credit management system, and expand the scope of application of credit supervision results. The second is to strengthen the supervision of energy prices. We should do a good job in market price monitoring, early warning and information disclosure, guard against market risks and stabilize market expectations. Strengthen the price supervision of natural monopoly links, improve the cost supervision mechanism of power grid and oil and gas pipeline network, and promote enterprises to reduce costs and increase efficiency.