The hottest mandatory policy design for natural ga

2022-09-19
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The compulsory policy design of natural gas and renewable energy power in Taiwan Province

there is a great difference between the implementation of vertical monopoly in the power industry and the market-oriented operation of liberalization, privatization, deregulation and the introduction of competition mechanism. However, when we study some policies, we often still consider the situation of vertical monopoly. For example, when studying the "China's renewable energy power mandatory market share policy", it is suggested that the power branch company, as the bearer of the share target, should allocate the same share target to all power companies. From the perspective of China's power system reform, it is obviously inappropriate for the power branch company to be the target bearer of share, which cannot reflect the purpose of power consumers to bear the system costs fairly and impartially. On June 21 this year, the national development and Reform Commission and the Electricity Regulatory Commission jointly issued a "notice to ensure that the national electricity price is implemented in place", requiring local power enterprises to levy the Three Gorges fund on the self generated and self consumed electricity of self owned power plants (excluding waste heat, residual pressure power generation, accident standby diesel generator sets) in accordance with the unified collection standards in the region. The agricultural loan repayment fund and urban public utility surcharges shall be turned over to the national financial department for special purposes, and the self owned power plants connected by local power enterprises shall collect system reserve fees. If these costs are not borne by captive power plants, large users will get rid of building captive power plants and avoid these burdens. It is believed that as large users purchase electricity directly from power plants, all kinds of price increases must be borne by all power plants, so the compulsory market share of renewable energy power should also be borne by all power plants

the power industry liberalization plan (approved version) formulated by Taiwan Province in February 2001 defines several

policy points of power reform in Taiwan Province, including the full opening of free competition in the power sector; Give priority to encouraging competition in the power generation sector; The power transmission and Distribution Department maintains public utilities; Independent power dispatching to maintain objectivity and fairness; Gradually liberalize users' power purchase options; Energy policy and free competition develop in parallel; Give consideration to the rights and interests of the people and the development of the power industry; Adjust the role of the government and formulate fair competition rules. The following is a brief introduction

1. Energy structure adjustment should give priority to promoting energy conservation and improving energy efficiency, continue to promote cogeneration and renewable energy, and vigorously promote the role of liquefied natural gas (LNG). The fuel cost of natural gas power generation in Taiwan is about NT $1.8/kWh, and the power generation cost is 2.2 yuan/kwh; The coal cost is 0.6 yuan/kWh, and the power generation cost is about 1 yuan/kwh; The gap between the two is quite large. Under the premise of pursuing profits, the power industry will give priority to coal as the main power generation fuel, so it will not be able to achieve the established energy policy goals. Therefore, after the liberalization of the power industry, supporting measures should be taken to encourage the establishment of gas-fired power plants to achieve the energy policy goals, provided that the customers have fully affirmed the company's production scope, production capacity, product performance and equipment capacity without prejudice to free competition. As for the cogeneration system that was encouraged in the past to improve thermal efficiency, after the liberalization of the power market, it continues to be encouraged without violating the principle of fair competition, so as to improve energy efficiency. Only in this way can the energy policy and free competition and opening be coordinated and developed in parallel

2. In the framework of the electricity market, the obligation of compulsory energy allocation is stipulated. First, the integrated power industry (which owns power generation, transmission and distribution industries) bears the matching obligation of nuclear energy and hydraulic energy; Second, all comprehensive power industry, power generation industry and self use power generation equipment with a certain capacity or above should bear the energy matching obligation of natural gas and renewable energy. The way of undertaking can be to build natural gas and renewable energy power plants on their own, or to buy the required capacity from other integrated power industry, power generation industry or those who set up their own power generation equipment; Third, power generation enterprises and self use power generation equipment enterprises with a certain capacity or above can also pay funds when the deformation in the diameter direction of the cross-sectional area of the pipe sample is 3.0% of the inner diameter of the pipe sample. If the energy efficiency of the generator set reaches a certain proportion or more, it will not be included in the energy ratio and total capacity. At present, Taiwan's nuclear power and hydropower are built by the integrated power industry Taiwan electric power company. Taiwan's hydropower resources are scarce, and most of them have been developed and utilized, so the matching obligations in this regard are borne by the integrated power industry

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3. In the electricity liberalization plan proposed by Taiwan Province, the power generation industry is a non-public utility, and the electricity produced by power generation enterprises can be sold to other power generation and distribution industries in addition to the integrated power industry. In addition, it can also sell electricity directly to users. There are two ways to sell electricity to users: one is to sell electricity through integrated power industry (including transmission and distribution), and the other is to build self built lines, which are directly connected with power plants and users, and the power plants supply power to users directly. Power generation enterprises can sell electricity in one way or in many ways, so as to increase the business flexibility of power generation enterprises. In order to implement the power energy allocation policy related to the promotion of clean energy and energy diversification in the energy policy, after the liberalization of the power industry, the power generation industry has the obligation to set the power energy allocation amount of natural gas and renewable energy generating units, that is, it should set a certain proportion of natural and renewable energy generating units in its total installed capacity according to the specified power energy allocation amount of the power generation industry, so as to meet the amount standard. If investors only set up natural gas power generation equipment or renewable energy power generation equipment, there is no need to set up coal-fired or oil-fired power plants. Through this obligation of matching the amount of electric energy, the cost difference between different fuels can be homogenized, and the use of clean energy can be promoted

the power generation industry can not only build and set up its own electricity and energy ratio of natural gas and renewable energy power generation equipment due to the implementation of energy policies, but also sign contracts with the integrated power industry, other power generation industries or those who set up their own power generation equipment. However, the power generation capacity purchased by the power generation industry from those who set up self-use power generation equipment is limited by the proportion of wholesale sale of surplus electricity by those who set up self-use power generation equipment. Because the amount of energy matching cannot be calculated repeatedly, the capacity of power generation equipment purchased by the power generation industry from the integrated power industry, other power generation industries or those who set up their own power generation equipment needs to be the excess energy matching capacity of the industry. The purchased capacity is not limited to generator units, that is, part of the capacity of a generator unit can be attributed to the energy matching capacity that the power industry itself should bear, and the rest is sold to other power generation industries or integrated power industry as its energy matching capacity

the energy matching capacity purchased by the power generation industry from the integrated power industry, other power generation industries or the installation of self-use power generation equipment can be handled by paying royalties in addition to the way of signing contracts, that is, the power generation industry can purchase provisions similar to "pollution discharge rights". After application for a period of time, the power generation industry will have energy allocation

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