Analysis Of The Market-Oriented Reform Of Chinese Electricity Industry

In the changing situation of China’s economic development, industry demand for electricity is also growing. Although the investment in the power industry is growing, but still can not meet the needs of all walks of life development. The technical aspects is the one reason of the problem, however, in-depth study found that the degree of marketization of China’s electric power industry is the main constraint of electrical energy, so the market-oriented reforms is the only way for the development of China’s electric power industry.A brief description in the first chapter of this paper describes the characteristics of the power product, organizational characteristics of the power industry, power system and market-oriented concept, then introduce the natural monopoly theory, the theory of imperfect competition, industrial organization theory, institutional economics theory and regulation theory. So I get the important theoretical support for China’s power market reform, which put forward ideas and research framework of this study.In the second chapter Ⅰ describe the course of the electricity market reform, from the initial set up factories in fund-raising, investment diversification, to separating government from enterprises, and then separating power plant from grid, then the electricity trading market. Then introduced the number of remaining issues in the electricity reform, such as electricity supply and demand imbalance, the shortage of coal, and bidding difficult implementation, transmission and distribution regardless of the regional grid coordination mechanism, and regulatory functions of the blurred and other issues.In chapter III I analyzes the case of a foreign power reform, such as the POOL and NETA mode in UK, the power pool model in Australia, the United States PJM electricity reform program. Summed up the experience of foreign electricity market reform is to break the existing monopoly, to achieve the separation of power generation, transmission, distribution, transmission and scheduling system independent normalized unified agency management. Power generation and placement power should be in full competition.Chapter IV sets out the way to solve the many problems of the power industry, namely, the wholesale electricity trading center program, power plants, placing power companies and large users trading on the main electricity trading platform, the State Electricity Regulatory Commission, CEC and other agencies are responsible for maintain a neutral body of the operation and regulation of the transaction, transactions are divided into spot trading and futures trading in two ways, trading mechanisms, including settlement mechanism, information and regulatory mechanisms. Due to China’s energy for power generation and electricity load of regional imbalances, the major regional co-ordination is not tight enough, the wholesale electricity trading implementation of the program is a sub-regional, in the region of China Southern Power Grid and the national grid north, northeast, northwest, central, eastern, six regional implementation of the program of the wholesale electricity trading center. Then gave a brief introduction on the electricity retail market.