Chinese version of smart grid expects electricity to break ice

Sources said that in the forthcoming "New Energy Industry Development Plan", distributed energy is expected to make its debut. In addition, the preliminary draft of the “12th Five-Year” energy planning distributed energy section, which is being drafted by the China Electromechanical Engineering Association Thermoelectricity Committee, has been affirmed by the National Energy Administration. Distributed energy is expected to enter the national energy five-year plan for the first time.

The prospect of distributed energy that has always existed as a niche industry seems to be bright. However, a survey by the China Securities Journal found that the Beijing South Railway Station distributed energy project, which was built after two years of indispensable networking, has reflected the reality of the development of distributed energy. Dilemma: How to connect to the network and how to price it. Behind these two major problems of technology and interests is a deeper structural problem. Because of the different development of smart grids due to differences in national conditions, there are few places in the country for the distributed energy that is the core and foundation of foreign smart grids. It is even more important to note that even though the smart grid reserves the entrance for distributed energy on the distribution side, under the circumstance that China’s power system reform has not made progress in the separation of power transmission and distribution for a long time, the intelligent development of the power distribution side still exists. For a long time to go, this narrow entrance to distributed energy could also be blocked.

I. Grid-connected problems Distributed energy needs to be solved

China's distributed energy started late, and many projects have the same grid connection problems as the Beijing South Railway project.

Two years after the opening of Beijing South Railway Station, known as the "Asia's No. 1 Railway Station," the China Securities Journal reporter visited the distributed energy station on the west side of Beijing South Railway Station and found that this was included in the national 863 plan, with a total investment of 7371. The large-scale energy-saving project of 10,000 yuan is still only operated as a central air-conditioner isolated network, and the power supply required by Beijing South Railway Station still requires an external power grid.

When Beijing South Railway Station was opened in 2008, Zheng Jian, the deputy chief engineer of the railway station planning and construction of the Ministry of Railways, responded to criticism from the outside world about “pseudo-energy conservation”, emphasizing the use of thermal power and cold triple supply and sewage source heat pump technology at Beijing South Railway Station. The use of waste heat generated by natural gas power generation for cooling or heating can increase the primary energy efficiency of natural gas from 35% to over 85%, and resolve 48.7% of the self-use power of Beijing South Railway Station. The triple supply system can save operating costs of 6 million yuan each year.

However, the failure to integrate the network for two years has made the question of “pseudo-energy saving” a reality. In fact, in order to solve the grid connection problem, relevant parties have repeatedly coordinated with the Beijing Electric Power Company responsible for the grid connection.

On March 3, 2009, the Beijing Municipal Development and Reform Commission issued the "letter on the related issues of the triple-supply of solar thermal power and solar photovoltaic power generation projects at the Beijing South Railway Station and related issues of the solar photovoltaic power generation project". It is hoped that the Beijing Municipal Power Company will work with the Beijing Municipal Railway Bureau to resolve the issue. Related networking issues. Since then, the relevant departments of the National Energy Administration have also coordinated several times and hope to solve the grid connection issue as soon as possible.

Xu Gang, the engineer of the Beijing Railway Administration responsible for the matter, ran for two years between the State Grid and the Beijing Electric Power Company. For two years, the grid has always been greeted with a smile, saying that the issue is being studied and will be properly resolved. However, as of the time of the China Securities Journal reporter, the Beijing South Railway Station distributed energy station is still operating off-grid.

According to insiders, China's distributed energy started relatively late, mainly in major cities such as Beijing, Shanghai, and Guangzhou. The installation sites are hospitals, hotels, office buildings, and university cities. The main use of “disconnected networks” or “on-grid access "The way it runs. Many projects have the same grid connection problems as Beijing South Railway Station.

According to Wang Zhenming, senior advisor to the Thermal Power Professional Committee of the China Electrical Engineering Society, China has built up 5 million kilowatts of distributed energy, of which the vast majority are isolated grids.

According to Liu Xianming, deputy general manager of Fanghua Power New Energy Technology Development Co., Ltd. of Guangzhou University City project, the project still needs to supply power to the university city through the local power grid. The so-called direct power supply has not yet been realized.

“Beijing South Railway Station is not expected to be high, but just hopes to 'connect to the Internet' rather than 'internet surfing',” said industry sources familiar with the project. Grid-connected refers to that a distributed energy station is only connected unidirectionally to the grid and can purchase electricity from the grid; while residual electricity refers to a two-way connection. It can not only buy electricity from the grid, but also can sell surplus electricity to the grid.

Second, multi-party game interests become the biggest obstacle in coordination

Distributed power projects sell power to the power grid. Technology is not a problem. The core issue is interest.

So, what can't be the cause of the grid connection?

Technology is the first practical issue. Hu Xuehao, deputy chief engineer of the China Electric Power Research Institute, said that even if the grid is not connected to the Internet, the frequent start-up of distributed generation will cause the instantaneous load of the grid to increase, and the power company needs to reconstruct the line. From the perspective of power dispatch, the more power points, the more unfavorable the deployment. The lack of grid-connected standards allows China's distributed power grids to be treated as conventional power supplies. Wind power has provided a lesson in the past: In the absence of grid-connected planning and standards, wind power began to be launched on a large scale, resulting in subsequent problems of wind curtailment.

Fortunately, technical problems are expected to be resolved as soon as possible. According to the "Strong Smart Grid" plan of the State Grid, the State Grid will carry out research and development of key technologies and equipment including grid-connected and monitoring of distributed power and energy storage equipment of residents, other users, and formulate relevant technical standards and management specifications. Distributed Energy "On-demand". The "Regulations for the Distribution of Distributed Power into the Power Grid" formulated by the State Grid has been issued and implemented within the State Grid. This means that within the scope of the State Grid, distributed energy grids have been technically unified. This regulation clarifies the technical requirements that the distributed power supply should meet the voltage level of 35kV and below, and it has strong operability.

The second problem is accompanied by technical problems, namely the issue of costs. The fees charged for the transformation of the line due to the access of the distributed power source are called access fees; for the safety and stability of the system operation, the distributed power source also needs the power grid as a backup power source. Therefore, a certain amount of spare capacity fee must be paid to the power grid. Access fees are charged on a one-time basis, and surcharges are charged on a monthly basis.

Both the access and backup of distributed power supply require input from the grid and occupy the power grid resources. Therefore, people in the industry have no objection to these two charges. The key is how to determine the standard of charges.

At present, developed countries have generally established a charging standard for distributed power and grid connection. However, in China, only Shanghai has established a charging standard for access points and reserve fees for distributed power points. Other regions are determined by local power companies themselves. Shanghai access fees are based on the project capacity, with a minimum of 400,000 yuan.

At present, the cost of distributed power generation is about 0.7 yuan, which is far higher than the general thermal power benchmark price. Coupled with expensive access and back-up fees, most distributed energy stations can only choose to operate off-grid.

Compared with grid-connected networks, over-Net surfing has become an impossible task. Take Shanghai as an example, the city is the best city for distributed energy development. Even so, according to the regulations of the Shanghai Electric Power Company, only the Class I power supply network has signed sales contracts with it, and the Class II power supply can only be used for its own use. Unfortunately, in this regulation, distributed energy is classified as Class II power.

Even if the grid does not make the above provisions, but because of the need to obey the power grid scheduling, and the distributed power is mainly generated by natural gas, in the case of natural gas prices all the way bullish, the higher the cost of the grid power. The industry generally believes that in the absence of policy support and financial subsidies, the power grid will inevitably lack the power to switch power from distributed power points.

Cai Guoxiong, deputy chief engineer of the China Electric Power Research Institute, stressed that distributed power sources sell power to the power grid. Technology is not a problem. The core issue is interest.

In fact, behind the problem of fees is a deeper level of interest.

People familiar with the Beijing South Railway Project bluntly said: “The power grid is selling electricity, and distributed power generation is generating electricity. How can the two have no conflicts? As a central SOE, under the pressure of becoming bigger and stronger, the power grid needs to consider its own market share. ."

In the case of the Beijing South Railway Station's distributed energy integration, Liu Runsheng, deputy general manager of Beijing Electric Power Co., said in an interview with a China Securities Journal reporter that accepting clean power access to the Internet is a major policy of the State Grid, but at the same time, the interests of the power grid must also be considered. “The key issue of the redundant Internet is to rationalize the electricity price mechanism. Because of the high price of distributed energy, it is difficult for the grid to purchase this part of the electricity at a high price without subsidies on electricity prices.”

A person of Beijing Electric Power Company, who asked not to be named, said that to change the grid connection problem of distributed power supply, the grid has its own hardships. For example, according to the different uses of electricity generated and different time periods, Beijing's electricity prices are divided into multiple levels. The main profit point for power companies is not residential electricity, but commercial electricity, especially commercial electricity during peak hours. The original design of the distributed energy system was to generate electricity when the electricity price was the highest, and buy electricity online when the electricity price was the lowest.

Take the Shanghai Pudong Airport distributed energy station as an example. This project uses the electricity price difference to generate electricity at 0.7 yuan during the day and buy electricity at the price of 0.2 yuan at night. Basically, it can achieve an average of 0.6 yuan per kilowatt plus cooling and heating. .

However, the problem is that when most of the distributed energy systems used by commercial users, such as shopping malls, hospitals, train stations, and airports, operate in accordance with this "best economic plan," the grid becomes the "most economic person."

Third, the path is not a smart grid light view of the power distribution side

China's smart grid will focus more on the transmission side, emphasizing the strong smart grid under UHV architecture

However, under the current system of smart grid construction dominated by grid companies, the choice of grid companies appears to be “the most economical” among some industry experts. The treatment of distributed energy that is considered as the core of smart grid in foreign countries can be described as a world of difference.

“The current emphasis on the development of smart grids in foreign countries does not focus on continuously raising the voltage level, but instead gives priority to the development of more efficient and energy-efficient distributed energy systems. China’s smart grid will focus more on the transmission side, stressing A strong smart grid under high-voltage architecture, said Han Xiaoping, chief information officer of China Energy Network.

Han Xiaoping introduced that in the United States, Europe, and Japan, the development of smart grids has a solid foundation and a real market, that is, a distributed energy system that has been gradually developed since the “oil crisis” in the 1970s. The development of smart grids in foreign countries is to provide a free dynamic access platform for various distributed energy sources, an intelligent control and management platform for energy-saving and demand-side management, and an innovative application platform for storage vehicles and various new types of appliances. Issues such as power supply security and sustainable development. Just as many PCs form a local area network, many distributed energy sources form a microgrid. These microgrids need to be connected to the main network, which requires an intelligent management system.

However, in China, the definition of the smart grid by the State Grid Corporation of China is: a strong smart grid characterized by information, digitization, automation, and interaction based on the strong grid with coordinated development of grids at all levels and UHV grids. .

Hu Zhaoguang, vice president of the State Grid Energy Research Institute, explained that by 2020, the State Grid will face 150 million kilowatts of wind power transmission problems, and will focus more on the transmission side, which is the stage of China’s economic development and energy concentration. The distribution characteristics are determined.

"After all, China's national conditions are different from the West. Distributed energy sources cannot be the basis and mainstream of smart grids."

However, some experts believe that in the current system, the grid companies are the only buyers of electricity, and the power distribution side will erode the interests of the grid companies, while emphasizing that large-capacity, long-distance transmission of energy can further enhance the control of the grid companies. . Some experts questioned that since the separation of the plant network in 2004, China’s power grid investment has lagged behind the investment in power supply, and the power grid construction on the power distribution side is a weak link in the power grid construction. In the future, UHV is the skeleton to emphasize the construction of the smart grid on the transmission side. This gap will be further increased. These may make smart grid construction ignore the intelligence of the distribution side, such as distributed energy, and will not allow more consumers to benefit from electricity.

Liang Weite, deputy to the National People’s Congress and chairman of the Center for Development Strategy Research in Macau, suggested that the State Grid should learn from the “super smart grid” of the European Union. While building UHV long-distance transmission, the focus of development on distributed energy development focuses on the distribution of electricity. Side of smart grid.

Zhou Yuanbing, deputy chief engineer of the State Grid Energy Research Institute, emphasized that the development of distributed energy in the national power grid is always based on both the power transmission side and the power distribution side, but consideration must be given to the different phases. The primary task of the current development of the smart grid is to solve the problem of large-scale delivery of renewable energy. Because China lacks the basis of distributed energy, the smart grid is the first to develop the transmission side. With the development of distributed energy, the future smart grid will certainly be popularized to the distribution side.

IV. Separation of transmission and distribution of institutional reforms is not necessary to break the deadlock

Institutional problems are the root cause of the lack of attention of the smart grid construction to the distribution terminal, and grid companies have no incentive to support the development of distributed energy sources.

However, the intelligentization of the power distribution side cannot be accomplished overnight. The grid-connected distribution of distributed energy is facing a series of deep-seated problems in power system reform.

Hua Wei, director of the Research Center for Natural Gas Utilization at South China University of Technology, believes that it is possible to solve the problem of grid connection by means of network fees. "The electric grid is like highways. Over-net fees are like tolls. Toll booths only charge tolls. The goods in the car also belong to the owner. If electricity and power plants can be negotiated according to the market and only pay the toll to the grid, then all problems All will be solved."

This can refer to the practice of the Danish National Grid. Hans, Vice President of Corporate Communications of the State Grid Corporation of Denmark, stated that in the Nordic power trading system, power generation, transmission and distribution are dismantled. Power generation and distribution are operated by private companies, which guarantees consumers the right to choose; the transmission is handled by the State Grid Corporation, which is affiliated with the Danish Energy Agency. The company is in a monopoly, but it is a non-profit organization. Throughout the transaction chain, the State Grid Corporation of China is a public utility company, not for the purpose of making profits. Its responsibility is to ensure that consumers use the cheapest electricity. In this trading system, consumers pay local power companies, local power companies, and power plants to pay for the power grid. Power companies can also bypass the power grid and buy power directly from the power plant.

These transactions were done mainly through Nordic Power Real-time Trading Center in Oslo, Norway. The trading center consists of two parts: the real-time trading market and the balanced trading market. The real-time trading market is mainly based on the principle of competitive bidding. There are four main trading entities: power plants (generation), national grids (transmission), local power companies (distribution) and consumers (electricity). The power company predicts electricity consumption at various times during the second day. No matter how much or less than the predicted electricity is actually traded, the power company will have to pay for the power plant because the power plant either needs additional power generation or needs to shut down the shutdown group. As a power plant, if it is not possible to provide electricity forecasted by the power company in a certain period of the next day, compensation will be given to the power company, who will take the money and go to other power plants to generate electricity. These costs were collected by the Danish State Grid Corporation and transferred to all parties. If there is a surplus of electricity, the trading system can use the price signal to encourage large power users to advance or delay the use of electricity to consume this excess of electricity. Most of these large users are factories. They choose to produce during periods of excess electricity, and the price of electricity will be much lower than usual.

The actual situation in China is that the power plant must sell all its electricity to the power grid and then wholesale it to the electricity supplier. This is like the owner must sell all the goods to the highway, and then sold by the highway to consumers. Hua Tuo believes that if the grid is allowed to charge a net fee, then no matter how much the distributed power price is, as long as someone is willing to buy it, the grid will be profitable.

“Taking Guangdong University City's distributed energy project as an example, the on-grid tariff is 0.78 yuan. This price is profitable to the enterprise and users can accept it. What can't be done with free trade? The power grid and our construction party have different interests, but no one We set up a platform for the exchange of benefits.” Liu Xianming’s so-called interest exchange platform is also a settlement platform for net fees.

However, this operation method will undoubtedly be met with strong opposition from the grid. The implementation of net fees is equivalent to transmission and distribution, which is equivalent to depriving the power grid companies of monopoly power.

In 2002, the State Council issued the “Power System Reform Plan” with the document “Gufa [2002] No. 5” and insisted on the reform of the power industry in which the separation of government and enterprises, the separation of factories and networks, the separation between the main and auxiliary industries, and the separation and transmission of electricity and materials require the breaking of monopoly and the introduction of competition. Establish a socialist power market economic system. However, after a lapse of eight years, apart from the separation of government and enterprises, and the separation of plant and network, the separation of the main and auxiliary divisions from the transmission and distribution targets is still out of reach.

The industry believes that the State Grid, relying on its own monopoly position, is bigger and stronger than it should be, and how can it allow a split in the distribution and separation of small distributed energy sources? Liang Weite believes that, for the sake of interests, a monopoly power grid company may not be keen on the development of distributed energy, and may even artificially delay or fail to take advantage of technology, regulations, standards, and other reasons, thus objectively hindering the distribution of The development of energy systems.

Another reason for the inability of net fees to be implemented under the current system is to violate the electricity law. Because the Electric Power Law stipulates that only enterprises with the “Power Supply Permit” issued by the power management department can become legitimate power supply entities, in addition to some direct power supply pilots, the power plant must sell electricity to the power grid, otherwise it is an illegal act.

In a strict legal sense, it is contrary to the power law that distributed power supplies excess power to other power consumers. Liang Weite believes that the lag in policies and regulations is the most fundamental reason for the rapid development of distributed energy.

In addition to the dispute over the interests of electricity prices, as an independent power generation side, how to pay relevant taxes and fees is another difficult problem that surrounds the distributed power supply and the power grid.

Last year, the National Development and Reform Commission, the China Electricity Regulatory Commission, and the Energy Bureau jointly issued a notice re-emphasizing that enterprises with self-owned power plants should pay government-sponsored government funds and subsidies, and local power grid companies should be responsible for collection and payment. Many of these taxes and fees have roughly the following categories: “The Three Gorges Project Construction Fund, Rural Network Repayment Funds, Urban Public Utility Surcharges, Renewable Energy Price Additions, and Post-Resident Resettlement Support Funds”.

However, the notice did not define the exact meaning of the captive power plant. Is the distributed power source a self-contained power source or is it a captive power plant? The power grid believes that since distributed generation generates electricity, it is essentially a captive power plant and it is only natural to pay the above taxes.

On the one hand, distributed energy practitioners believe that under the major government policy of energy conservation and emission reduction and encouraging the use of natural gas, the financial subsidies for distributed power sources are not enough. How can they pay the same taxes as thermal power plants?

Liang Weite suggested that the responsibility and obligations of the grid companies in the development of distributed energy systems should be further established, and the basic principles for full purchase of electricity and the benchmarking prices for reasonable sustainable development should be established; at the same time, corresponding tax reductions, etc., should also be provided. Incentives.

Institutional reforms are unlikely to happen overnight.

Chi Guojing, secretary-general of the China City Gas Association, put forward a compromise proposal that distributed energy builders can form joint ventures with the grid and share profits. For example, he said that Tokyo Electric Power and Tokyo Gas in Japan are through joint ventures and have conducted close cooperation in distributed energy. However, people in the industry are pessimistic about this: In the current situation of oversupply of electricity, where does the grid come from?

Zhou Yuanbing believes that it is wrong to point the contradictory focus to the power grid company. The key to the problem lies in the local government. The government is the maker of policies and standards. It is also the deployment of key resources. The enterprise is only the executor. As long as the government departments have objectives, requirements, and rules, the company can't implement it.

Zhou Yuanbing disclosed that, commissioned by the National Energy Administration, the State Grid Energy Research Institute has begun special research work on distributed energy policies and regulations, and has already completed the first draft of the report. The first draft includes a package of policy recommendations such as planning and project management, grid management, operation mode, electricity pricing mechanism, and preferential policies, which have basically been approved by the energy authorities.

Although there are many obstacles to the development of distributed energy in Yokohama, it is worthwhile to note that the Beijing South Railway Station has seen a turnaround in the distribution of distributed energy. The China Securities Journal reporter learned from the person familiar with the matter that the State Grid recently approved the Beijing Power Company's relevant materials on the grid connection problem of the Beijing South Railway Station project. The grid connection problem of the Beijing South Railway Station project is expected to be resolved during the year. Xu Gang, an engineer of the Beijing Railway Bureau, who had been working on this for two years, could finally breathe a sigh of relief.

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