China Integrated Energy Market System Research

Energy is not only one of the important material basis for human survival anddevelopment, is also the lifeblood of economic and social development of a countryor region. It is the main driving force of economy and sources of raw materials, butalso one of the important industries in the national economy. The fundamental pur-pose of the study about energy problems is to explore how to maintain the dynamicequilibrium of supply and demand in the energy market, and is to meet the growingenergy needs of human economic and development with the limited energy re-sources.Traditional energy research is generally about the analysis of single energymarket that based on the external form of energy such as oil, gas, coal, electricityand so on.The nature of all types of energy that we are accustomed to classify issame, they are energy storage materials that can supply the surrounding environmentwith power, light, heat by certain technical means and can achieve mutual conver-sion. This paper argues that the construction of the energy market should grasp theessential attribute of energy on the basis of the traditional theory of single energymarket, takes energy as a unified concept to explore definition and connotation ofintegrated energy market, researches on the constructed elements, structure design,operation rules, as well as related support system of the construction of the inte-grated energy market, analyses the operating status of integrated energy market sys-tem and the path of how to expand the in-depth implementation of integrated energymarket study.The first chapter of this paper describes the realistic background andsignificance of the topics. Through summarizing and drawing lessons from thedomestic and international energy market research progresses and on the basis ofthat have been done by domestic and foreign scholars, this paper studies theconstruction of China’s comprehensive energy market system in accordance with theideas of this paper by using systematic approach, exploratory method, quantitativeand qualitative research methods and other research methods. The second chapteranalyzes, researches, summes up the basic theory of the construction of energymarket, comprehensively exposits the definition, classification, special attributes of energy, energy market system, as well as the relation between energy and economicsecurity of the country in accordance with the hierarchical progressive way.Different countries and different regions have different objective conditions andforms of the energy market; energy market theory that applies to all countries andregions is still not formed, so research energy market must be combined withspecific country situations. The third chapter summarizes these historical changes ofChina’s energy industry systematically, which sum up historical experience anddevelopment context of changes in the energy industry in China, and thedevelopment trend of China’s future energy production and consumption arepredicted.The fourth and fifth chapter analysis of the operating status of China’sexisting energy market as well as problems on basis of energy market research ofseveral foreign countries with reference value,it can be seen that the main problemsfor China’s energy market is currently is the administrative monopoly resulting inenergy market fragmentation, the mutual establishment of barriers, the marketmechanism can not be the normal function of the allocation of resources, soinstitutional mechanisms has become a major bottleneck of China’s energy market tocontinues to develop.These abroad several major reference countries some country’s resource baseconditions are superior to China’s, some country’s resource conditions are not asgood as China’s, as well as the land area, resource status of countries with a highdegree of similarity to China. These countries take different strategies and policiesfor energy industry development but have one thing in common are the introductionof competition mechanism, the difference is just the difference of the degree ofmarket regulation and specific control measures.After rapid development since the reform and opening up, the scale of China’senergy industry has developed into the world’s No.1. Though has the world’s largestenergy industry but still can not meet the continued growth in demand for energy inChina, this energy imbalance between supply and demand will be a seriouschallenge to China’s future economic and social developmentform, and even a threatto China’s future economic security. Based on the problems and their root causes ofour existing energy market, relationships between energy supply and demand arere-division, proposals of building China’s integrated energy market system are made.The concept, connotation, framework of the objectives, path to achieve, strategic choice, construction of elements, design of structure, and operating rules Etc. areexposited comprehensively for integrated energy market system, simulation methodsfor the operation of the integrated energy market system are described. Integratedenergy markets studied in this paper is not only an evolution of traditional energymarket but also a disruptive reconstruction, it provides a practical new idea for ourfuture energy market construction.In order to make the energy market to continually develops, we must reform theexisting institutional mechanisms. Energy is the basic industry related to the nationaleconomy and people’s livelihood, in order to achieve the established objectives ofthe reform on the basis of the entire energy market stability, we deepen energy re-form must make right objective and detailed reform plan, steps in accordance withthe breakthroughs in key areas and the orderly ways forward to implement. Finally,this paper gives specific proposal for China’s energy development policy, develop-ment strategy, energy supply and consumption policy, energy strategy leading in-dustry training and development policy.