Power industry ushers in huge development opportunities

Interpretation of the main contents of the government work report

1.The economic growth target downplays the growth rate and gives priority to quality.The 2018 government work report set the economic growth target as"about 6.5%",which is equal to the 2017 target.It no longer mentions"striving for better results in actual work",but for the first time includes the urban survey unemployment rate and macro leverage rate into the expected target.Highlighting employment orientation will help to reasonably set growth targets and avoid credit and investment impulses caused by excessive pursuit of economic growth."The basic stability of macro leverage"has been formally included in the government's work objectives,and preventing financial risks will be the focus of the government's work.

2.The active fiscal strength was weakened and the structure of fiscal expenditure was optimized.The budget deficit in 2018 is 2.38 trillion yuan,which is the same as that in 2017.The budget deficit ratio is 2.6%,0.4 percentage points lower than that in 2017.However,considering that the excess revenue in 2017 was carried forward to the planned expenditure in 2018,the actual deficit ratio is expected to remain around 3%.Constrained by the size of the deficit and the reduction of taxes and fees,fiscal expenditure has put more emphasis on"cohesion and efficiency".In 2018,the fiscal policy will pay more attention to the optimization of the expenditure structure,increase support for the three major challenges,and more favor innovation driven,"agriculture,rural areas",people's livelihood and other fields.

3.Monetary policy emphasizes moderate tightness and no longer sets M2 growth target.The tone of monetary policy in 2018 is still stable and neutral.Compared with the government work report in 2017,this time more emphasis is placed on"moderate tightness",and specific targets for the growth of M2 and social financing scale are no longer set.Instead,it is required to"maintain reasonable growth"on the basis of managing the monetary master gate.Under the background of the strengthening of monetary endogeneity and the gradual transformation of monetary policy regulation to price type,the controllability of M2 will become worse,and the growth rate of M2 will gradually fade out of the policy goal.In addition,the report also pointed out that"make good use of differentiated reserve,differentiated credit and other policies",strengthen the guidance of credit structure and support the real economy.

4.Supply side reform focuses on making up weak points and reducing costs.The supply side reform still takes the first place in the government's work objectives in 2018,highlighting the two points of making up for weaknesses and reducing costs.Specifically,it includes six measures:first,develop and strengthen new driving forces;Second,accelerate the construction of a manufacturing power;Third,continue to eliminate invalid supply;Fourth,we should deepen the reform of"releasing,regulating and serving";Fifth,further reduce the tax burden on enterprises;Sixth,substantially reduce the non tax burden on enterprises.With the weakening of the marginal strength of"three removal",the focus of the supply side structural reform in 2018 has changed,mainly focusing on simplifying administration,reducing taxes and fees,and developing and strengthening new momentum.

5.Vigorously implement the strategy of rural revitalization and regional coordination.The government work report clearly put forward the requirement of developing"Internet+agriculture",adding more than 80 million mu of newly increased standard farmland,and exploring the reform of"three rights"separation of homestead.Focusing on regional development,it is proposed to ease Beijing's non capital functions,build Xiong'an New Area with a high starting point and high standards,and introduce and implement the development plan of Guangdong Hong Kong Macao Bay Area.In 2017,the"solid promotion of new urbanization"was transformed into"improving the quality of new urbanization",and the goal of relocating to cities was to maintain 13 million people.Urbanization and rural revitalization went hand in hand.

6.People first and benefit people's livelihood.The 2018 government work report has specific requirements and arrangements for employment,poverty alleviation,income,education,medical care,housing,social security,ecological environment and other issues of concern to the people.It reflects the adjustment of the government's work focus after the change of major social contradictions.How to meet the people's needs for a better life will be the focus of the current government.

Main viewpoints on energy and power industry in the two sessions

1.Reduce the power transmission and distribution price and lighten the burden of electricity price for general industry and commerce.The government work report specifically proposes to reduce the power grid link charges and transmission and distribution prices,and the average industrial and commercial electricity price will be reduced by 10%.At present,China has taken measures in government funds,transmission and distribution electricity price reform and other aspects,by reducing the collection standard of the national major water conservancy project construction fund and the late-stage support fund for large and medium-sized reservoir resettlement,canceling the special funds for urban public utilities and industrial enterprise structure adjustment,and comprehensively completing the verification of transmission and distribution electricity price reform.This year,it is expected that the state will continue to reduce government funds,and may adopt the policy of reducing the grid price about twice;Power grid enterprises will also do a good job in reducing electricity prices by optimizing the structure of on grid electricity and increasing the proportion of market-based transactions.Shu Yinbiao,Chairman and Secretary of the Party Leadership Group of State Grid Corporation of China,said that State Grid would implement the requirements of the government work report,further release the dividend of reform,and reduce the burden of electricity prices for general industry and commerce.

2.Accelerate the construction of a clean energy development system.Promoting the revolution in energy production and consumption and building a clean,low-carbon,safe and efficient energy system are the key to winning the battle against pollution and promoting the formation of a new pattern of modernization with the harmonious development of man and nature.China has the largest installed capacity and power generation of clean energy in the world,but the problem of clean energy consumption is still prominent.Shu Yinbiao,Chairman and Secretary of the Party Leadership Group of State Grid Corporation of China,proposed to continuously promote grid technology upgrading and leapfrog development,strengthen scientific and technological innovation capabilities,and use new technologies to promote the development of new energy.Xi Guofu,the chairman of NARI Group,proposed that the global energy Internet should help build a new power system and promote the development of clean energy,increase investment in innovation and adhere to the innovation driven strategy.Cao Peixi,Chairman of Huaneng Group,proposed to coordinate the development of new energy and clean coal power development,and strengthen the top-level design and technological innovation on the power demand side.At the same time,innovation is conducive to the development and utilization of new energy related policies.Shi Yudong,Chairman of State Grid Sichuan Electric Power,proposed to accelerate the development of ultra-high voltage power grid and deliver the rich clean energy from southwest to the load center in the middle east.Zhang Chuanwei,Chairman of Mingyang New Energy Investment Holding Group,suggested that offshore wind power development be included in the national major strategy to meet the people's demand for a large amount of clean energy for a better life in the new era.

3.Accelerate the construction of new energy vehicle charging infrastructure.The government work report mentioned new energy vehicles twice:"promote the development of new energy vehicles in intelligent manufacturing"and"extend the preferential policy of new energy vehicle purchase tax for another three years to promote the terminal consumption of new energy vehicles".Compared with the development speed of new energy vehicles,the construction speed of charging infrastructure is obviously lagging behind,which restricts the user experience of consumers and the promotion and popularization of new energy vehicles.Xu Heyi,Chairman of BAIC Group,proposed to accelerate the construction of infrastructure charging facilities.Fang Yunzhou,vice director of Zhejiang Hezhong New Energy Automobile Co.,Ltd.,proposed to increase charging pile facilities in rural infrastructure construction,increase rural charging pile electricity subsidy,and introduce rural new energy car purchase subsidy policy.Lan Minbo,Director of the Management Committee of Jinshan Science and Technology Park of East China University of Science and Technology,Chen Hong,Secretary of the Party Committee and Chairman of the Board of Shanghai Automobile Group Co.,Ltd.,Zhou Shanhong,Chairman of the Board of Jiangsu Wanshun Electromechanical Group Co.,Ltd.and Secretary of the General Party Branch,and Wang Yili,Chairman of the Board of Directors of China Energy Guodian Group pointed out that the power batteries currently used in electric vehicles are mainly lithium-ion batteries,When the capacity of electric vehicle battery drops to 80%of the rated capacity,it is not suitable to continue to use.The direct elimination of lithium-ion batteries will,on the one hand,cause serious waste of resources;on the other hand,if not properly recycled,it will cause new secondary pollution.It is suggested to further optimize the subsidy policy for battery cascade utilization,establish a power battery recycling system and access mechanism,and accelerate the formulation of laws and regulations on power battery recycling of new energy vehicles.

4.Strengthen the construction of rural networks to help fight poverty alleviation.The government work report proposed that this year,we should vigorously implement the rural revitalization strategy,promote the all-round development of rural undertakings,improve water supply,power supply,information and other infrastructure,and build and renovate 200000 kilometers of rural roads.To get rid of poverty precisely and truly,and effectively improve the living standards of urban and rural residents,power and other infrastructure construction must go ahead.Shu Yinbiao,Chairman and Secretary of the Party Leadership Group of State Grid Corporation of China,proposed to further strengthen photovoltaic poverty alleviation,give more priority to the construction plan of photovoltaic power stations to poor areas,and give priority to financial subsidies for photovoltaic to support photovoltaic poverty alleviation projects,so that more poor people can benefit from it;Guide and support state-owned enterprises to give full play to their comprehensive advantages such as professional technology,increase investment in capital and resources,actively participate in photovoltaic poverty alleviation,and play a major role in the fight against poverty.Gao Feng,member of the National Committee of the Chinese People's Political Consultative Conference and vice governor of Yunnan Province,proposed to combine the construction of village level poverty alleviation power stations with the implementation of the rural revitalization strategy in poor areas,and create conditions for poor villages to carry out industrial poverty alleviation,develop collective economy and achieve targeted poverty alleviation through the construction of village level poverty alleviation photovoltaic power stations.

5.Vigorously promote the reform of mixed ownership of electric power enterprises.The government work report pointed out that it is necessary to deepen the pilot reform of state-owned capital investment and operating companies,continue to promote the optimization and restructuring of state-owned enterprises and the shareholding reform of central enterprises,and promote the strengthening and expansion of state-owned capital.We will steadily advance the reform of mixed ownership.At the 2018 annual work conference held in succession,central enterprises in seven major fields,including electricity,oil,natural gas,railway,civil aviation,telecommunications,and military industry,have made clear the mixed transformation plan.Among them,the mixed transformation of electric power enterprises in 2018 is the strongest and most widely involved.At present,8 central enterprises,including State Grid,China Southern Power Grid,China Huaneng,China Huadian,State Power Investment Group,Three Gorges Group,National Energy Group and China Power Construction Group,have proposed the work deployment of mixed transformation in 2018.

6.Strengthen international cooperation on the"the Belt and Road"in the field of energy and power.The government work report pointed out that international cooperation along the"the Belt and Road"should be promoted.We will expand international production capacity cooperation and drive Chinese manufacturing and services to go global.Cooperation in the field of energy and power is an important part of the"the Belt and Road"construction.At present,there is an excess of thermal power installed capacity in China,and there is an obvious supply gap of power and other energy resources in countries along the"the Belt and Road".There is huge potential in the investment,design and construction of energy and power projects in countries along the"the Belt and Road".In the context of the"the Belt and Road Initiative",China should give full play to its advantages in energy resources,scientific and technological innovation,strengthen energy connectivity,and promote related industries to"go global"better.

7.Promote the energy consumption revolution and vigorously promote electric energy substitution.To promote the energy production revolution,we should vigorously develop new energy,which is an inevitable choice to increase the proportion of non fossil energy in China.To promote the energy consumption revolution,we should vigorously implement electric energy substitution.Every 1 percentage point increase in the proportion of electric energy in terminal energy consumption will reduce the energy consumption per unit of GDP by 3 percentage points.Increasing the proportion of electric energy consumption can effectively improve China's comprehensive energy efficiency.Jiang Weiping,the chairman of Tianqi Lithium Industry Co.,Ltd.,pointed out that we should vigorously develop clean power energy,implement the power substitution policy of"replacing coal with electricity",and change the current unreasonable economic growth mode and energy development status.Lu Xiaoguang,member of the National Committee of the Chinese People's Political Consultative Conference and vice chairman of the Hebei Provincial Committee of the Chinese People's Political Consultative Conference,suggested establishing a sustainable development mechanism to replace coal with electricity to promote clean heating in northern winter.Zhou Hongyu,vice director of the Standing Committee of the Hubei Provincial People's Congress and professor of Central China Normal University,suggested that the north-south heating boundary should be redrawn along the Yangtze River.In order to avoid going back to the old ways of damaging the environment such as smog caused by heating in the north,it is recommended that the country actively consider the use of nuclear energy,solar energy,shallow geothermal energy and other new clean energy when planning and building central heating in the south.Ren Yaping,member of the National Committee of the Chinese People's Political Consultative Conference,pointed out that there is a solid foundation for accelerating the promotion of clean heating in the northern region.The northern region has significant advantages in resources and is relatively surplus in electricity.Therefore,appropriate clean heating strategies can be adopted according to local conditions.Zhang Fengbao,Vice President of Tianjin University,proposed to increase the power substitution and promote the implementation of re electrification strategy.

Future development trend of electric power industry

1.The production and operation pressure of electric power enterprises increases.The number of hours for power generation utilization across the country has been decreasing year on year.In addition,the price of raw materials has been at a high level in recent years,which makes it difficult to effectively channel the cost of power generation to the outside world.The benefits of power generation enterprises are under pressure.A series of reform measures,such as the reform of the electricity selling side,the liberalization of incremental distribution network business,the power generation and consumption plan,and the reform of transmission and distribution electricity prices,have brought new challenges to the construction and operation of the power grid.The functional orientation,revenue mechanism,and profit model of the power grid enterprises have changed,and the operating pressure has increased.From the perspective of power generation enterprises,the cost of power generation should be reduced through technological progress,and the production efficiency should be improved by strengthening operation management,strengthening cost capital management and control.From the perspective of power grid enterprises,it is necessary to reduce the operation and operation costs through management improvement and technological innovation,explore new business models and develop business forms,and improve the level of business ability and power supply service quality.From the perspective of the government,factors such as historical legacy and cross subsidies of the power industry should be considered to reasonably check the transmission and distribution price level to promote the healthy and orderly development of the power industry.

2.Re electrification leads the development of clean energy.The fundamental way to realize energy transformation and build a new energy system is re electrification.From the perspective of energy production,new energy that is converted into electric energy for use will replace traditional fossil energy.From the perspective of energy consumption,electricity will replace coal,oil and other terminal fossil energy.It will become the normal state of production and life style reform to meet various energy demands through re electrification and improve the overall energy utilization efficiency.With the further development of re electrification,the energy development pattern with electricity as the center and grid as the basic platform will become increasingly prominent.Accelerating the construction of a strong smart grid with ultra-high voltage as the backbone grid,building a new generation of power system,building a unified power market,and improving the market mechanism are strategic choices to promote China's energy production and consumption revolution and promote clean energy transformation.

3.New energy vehicles have developed rapidly under the"two wheel drive"of policy support and technological progress.Based on the consideration of energy security,environmental protection and manufacturing power,the new energy automobile industry will still be China's strategic emerging industry in the future,and will be the key development object supported by the state.At present,the development policy of new energy vehicles in China is relatively sound,and it will be more systematic in the future.Policy support will be given in terms of power battery research and development,power battery recovery,production cost differential subsidy,purchase tax reduction,and priority given to the right of way.With the support of systematic policies,the number of new energy vehicles in China will continue to grow,and the growth of crude oil consumption and foreign dependence will gradually decline,playing a positive role in ensuring China's energy security.

4.The reform of the power system was further deepened and the power market system was continuously improved.China will reduce the power consumption cost of the real economy through the reform of transmission and distribution electricity price,market-oriented transactions,and tax and fee reduction.On the one hand,we will continue to improve the transmission and distribution electricity price mechanism,steadily promote the reform of electricity prices,carry out bidding for grid access and pilot reform of transmission and distribution electricity prices,promote the reform of the classification of sales electricity prices,and improve the pricing mechanism for hydropower,nuclear power and renewable energy power generation.On the other hand,the scale of electricity market trading will be greatly increased.We will continue to improve the medium-and long-term electricity trading mechanism,further promote the construction of the auxiliary power service market,actively and steadily promote the pilot construction of the spot electricity market,standardize the trading behavior of the electricity market,accelerate the reform of electricity rationing and selling,improve the supporting policies for the pilot reform of incremental distribution business,and strengthen the standardization and guidance of the electricity selling side market.