Research On The Vertical Relationship Of China's Coal-fired Power Industry Under The New Normal

As a basic energy industry in China,the coal and electricity industries are in the upstream and downstream industries of the same industrial chain and the vertical relationship between the two has always been a research hotspot.Under the new normal,China's economy has slowed down,and the supply and demand situation of coal power has changed from "coal tight electricity pine" to "coal power double loose",resulting in overcapacity of China's coal power and operating downturn.And in order to improve green economy,and built a clean and low-carbon modern energy structure,the state has increased restrictions on fossil energy such as coal,making the development of coal and electricity industry more difficult.In 2016,China's electricity prices have been lowered and the coal prices have recovered.The double blow has caused serious losses in China's power industry.The contradiction between coal and electricity has once again been pushed to the forefront.The double strike has caused serious losses in electricity industry,and the contradiction between coal and electricity has been pushed to the forefront once again.The number of vertical integration of coal-fired power companies has gradually increased in order to the development of the enterprise.The vertical integration of coal-fired power enterprises can not only alleviate the problem of excess coal-fired power industry,but also achieve scale effect,reduce transaction costs,improve corporate profits,and ensure the sustainable development of enterprises.It is a good way to resolve the contradiction between “planned electricity” and “market coal”.Based on this,this paper will study the vertical relationship of China's coal-fired power under the new normal,and provide a reference for enterprises to integrate coal-fired power.To study the relationship between vertical enterprises of coal-fired power enterprises under the new normal,This paper is divided into four aspects: theory,model,evidence and conclusion.In theoretical aspect,this paper firstly analyzes the motivation of vertical integration by using neoclassical economics,industrial organization theory and new institutional economics,and detailed the related literatures at home and abroad from two aspects: the contradiction between coal power and the vertical relationship between coal and electricity.Secondly,based on the current situation of insufficient demand and overcapacity in the coal-fired power industry under the new normal state,the reasons for the contradiction of the coal-fired power industry are discussed,and the advantages of integration of coal-fired power enterprises are obtained.Finally,an example is analyzed by using the example of coal-electricity integration of Zhangze Power.In model aspect,this paper mainly uses Stackelberg game model(non-cooperative game model)and cooperative game model tocompare profits.Through research,it is found that vertical integration of coal-fired power enterprises increases the profits of enterprises,while coal-electricity integration model is the optimal decision to the vertical integration of coal-fired power industry.In empirical aspect,coal-electricity enterprises with different vertical integration degree are taken as research objects,and the entropy method is used to establish an evaluation system for the performance of coal-fired power enterprises in 2008-2017.Through research,it has been found that the operational capacity and profitability of coal-electricity integration enterprises have increased,but due to the increase in the scale of enterprises,the solvency of enterprises has declined.Comparing the comprehensive scores,the operating performance of coal-fired integrated enterprises is higher than that of non-vertical integrated enterprises,and compared with the vertical integration model without types,the higher the vertical integration level,the better the business performance level,and the investment of newly built power forward integrated enterprises has the best benefit..In terms of conclusions,this paper summarizes the research results and proposes relevant policy recommendations based on the current problems in China's coal-electricity integration process: The reform of power enterprises should be deepened,the access system of coal-fired power market should be improved,and the vertical integration of coal-fired power enterprises should be promoted,especially the forward integration of power companies,giving full play to the advantages of vertical integration of enterprises and saving transportation costs.