Under the background of the comprehensive implementation of the reform of the electric power system and the reform of state-owned assets and enterprises, the State Grid Corporation (hereinafter referred to as "State Grid") and China Southern Power Grid Corporation (hereinafter referred to as "South Grid"), two major power grid giants, simultaneously submitted the No. 1 document of 2017 to "Reform". According to the reporter of Economic Information Daily, this work will be carried out in three ways: electricity reform, mixed reform and internal reform. Among them, the State Grid will build a unified national electricity market and strive for market traded electricity quantity to exceed 1 trillion KWH. Mixed reform will mainly take the form of joint venture, cooperation and listing. It will focus on the construction of pumped storage power stations, the opening up of incremental distribution investment business, and industrial and financial units.

At a press conference on the 2016 reform work of the National Development and Reform Commission on January 19, Wang Qiang, inspector of the Department of Comprehensive economic system Reform of the National Development and Reform Commission, said that by January 2017, 21 provinces (autonomous regions and municipalities) had carried out comprehensive trials of electric power system reform, in addition to the Tibet Autonomous Region, which is formulating a pilot plan. Nine provinces (autonomous regions and municipalities directly under the central government) and the Xinjiang Production and Construction Corps have carried out pilot reforms on the electricity sales side, and three provinces (autonomous regions) have carried out trials on the nearby consumption of renewable energy. The pilot reforms on electricity transmission and distribution prices have covered all provincial-level power grids except Tibet and the power grids in North China, and the first batch of 105 pilot projects for incremental power distribution business reform have been implemented. It has formed a pattern of comprehensive pilot projects and multi-mode exploration.

Data from the National Development and Reform Commission (NDRC) shows that in 2016, the amount of electricity traded on the market, including direct transactions, exceeded 1 trillion kilowatt-hours, accounting for about 19 percent of the country's electricity consumption. An average of 7.23 cents per kilowatt-hour of electricity was cut, saving consumers more than 57.3 billion yuan. "Recently, the National Development and Reform Commission is formulating the Notice on the Orderly distribution and Development of electricity consumption Plan, which will be issued in due course." "Wang Qiang said.

On January 19th the priorities of the Spring Festival press conference, power supply high quality service and power grid development priorities, deputy director of economic restructuring office wei Bin, according to its business area 2016 power market transaction of 790.7 billion KWH, this year will report a positive, open market main body to participate in the power purchase options trading between provinces, orderly propulsion and power generation right trading power transactions, We will strive to exceed 1 trillion KWH of market-based electricity transactions.

The south network also said to be a good power system reform vanguard. The Guiding Opinions of China Southern Power Grid Corporation on Comprehensively Deepening the Reform in 2017 (Draft for Soliciting Opinions) clearly specifies the company's six key tasks this year: We will continue to improve the mechanism for electricity transmission and distribution, intensify market-oriented electricity trading, improve the standard operation of electricity trading institutions, deepen the reform of the electricity selling side, actively participate in the pilot reform of incremental distribution services, and steadily promote the reform of independent power supply areas.

In the electric power system reform at the same time, mixed reform is also expected to further breakthrough. The National Development and Reform Commission (NDRC) said it will speed up the mixed-use reform in key sectors and industries related to national economy, people's livelihood and economic security, such as electricity, oil and natural gas, and plans for the first batch of pilot enterprises are under discussion.

Nanwang said it will actively do a good job in the mixed-ownership reform pilot project in Qianhai, Shenzhen, in 2017. On the other hand, State Grid proposed that pumped storage power stations and peak and frequency modulation energy storage projects should be liberalized. We will actively participate in pilot projects of reform to liberalize incremental power distribution investment business by means of wholly-owned and holding companies, and expand our market share. We will speed up the listing of industrial and financial units, increase the rate of asset securitization, and strengthen standardized management of listed companies. Explore equity and dividend incentives for science and technology enterprises, and actively carry out trials.

It is worth noting that the slowing growth of power demand and the promotion of market-oriented reform have also caused a great impact on the development of power grid companies themselves. Hereunder, the two major power grid companies to grasp the internal reform of physical fitness, south the net has been clear about the seven main job: innovative new electric power marketing system, building materials and bidding management system, develop the comprehensive energy related business, such as development, optimize the financial platform to strengthen the international business to manage and overall dominated, carry out special operations and supplement the rural power grids. The State Grid focuses on improving the corporate governance structure, decision-making mechanism and management process. We will improve incentive and restraint mechanisms, establish systems for selecting projects, selecting and employing people, distributing salaries, and assessing performance in line with market demand, strengthen the building of entrepreneurs, carry out trials of a professional manager system, and explore diversified ways of distributing salaries.

Original title: The two power grid giants refocus on the joint venture and cooperation of State Grid to strive for market transaction electricity to exceed one trillion yuan