What? State Grid and Southern Power Grid merge? National Committee member of the Chinese People's Political Consultative Conference, Cai Guoxiong, advises


North Star Power Transmission and Distribution Network News: Introduction: Separation and integration are inevitable, and changes that are inevitable over time continue to emerge. The rise and fall of dynasties are accompanied by economic and social development, and of course, the power industry must also follow this law. The energy sector is far from the establishment and separation of the Ministry of Energy of China, the recent restructuring of the National Energy Administration and the China Electricity Regulatory Commission, and the merger of China Power Investment Corporation and China National Nuclear Power Technology Corporation. During the same period, the restructuring of the industrial sector was most typical of the merger of North and South China Railway Vehicles, and the expansion of the bubble in central enterprises seemed to be the trend.
The organizational structure of energy production and consumption varies in different economic and social contexts. In the early stage of the electricity reform in 2002, State Power Corporation of China was split into two power grids, five major power generation companies, and four auxiliary companies. With the deepening of reform, the subsidiary companies have been restructured into China Electric Power Construction and China Energy Construction, with the two power grids operating independently and competing with each other. This pattern has played an excellent role in the promotion of this round of electricity reform. Shenzhen has taken the lead in promoting the pilot of transmission and distribution electricity prices within the Southern Power Grid region, which has forced nationwide reform to advance. Other provinces within the State Grid region have successively joined the reform demonstration, and a benchmarking management trend has also been formed between the two.
Recently, Mr. Cai Guoxiong, a member of the National Committee of the Chinese People's Political Consultative Conference, Vice Chairman of the Beijing Municipal Committee of the Chinese People's Political Consultative Conference, and Chairman of the Beijing Municipal Committee of the Taiwan League, initiated a "proposal solicitation" to suggest the merger of State Grid and Southern Power Grid to adapt to the market situation. This suggestion has attracted great attention in the industry, with both supporters and opponents.
The following is the full text of Mr. Cai Guoxiong's proposal. Proposal for the merger of State Grid and Southern Power Grid
Due to well-known reasons, in order to adapt to the needs of reform, the management of the power grid has been decomposed into two major companies: State Grid Corporation of China and Southern Power Grid. The establishment of the two major power grid companies did indeed promote the reform of China's power grid system to a certain extent, based on the purpose of the power system reform at that time and the requirements of promoting market-oriented competition.
But we should also see that at the beginning of the establishment of the two major power grid companies, China's ultra-high voltage power grid was in its early stages, and the formation of the two power grids did not have a significant impact on the development of ultra-high voltage. Today, the multi horizontal and multi vertical ultra-high voltage power grid spanning across regions and north and south has begun to spread throughout the country. Nowadays, people are more aware of the negative impact of the regional division between State Grid and Southern Power Grid on the planning, design, and distribution of ultra-high voltage power grids, as well as the scheduling of new energy and the effective utilization of resources.
The formation of the two major power grids has its historical reasons, including the need for reform at that time and the immaturity of the ultra-high voltage power grid. Today, with the development and technological progress of ultra-high voltage power grids. Require state-owned enterprises to better adapt to the current market situation.
Previously, the Chinese government promoted the merger of high-speed rail companies CRRC South and North, also due to the international market demand for China to cross borders. Similarly, with the gradual formation of the energy Internet. The formation of ultra-high voltage power grids across regions and borders is also a historical trend. In this new situation, the organizational form and operational mode of national enterprises should adapt to the development of technology, international and domestic energy development trends, and the development trends of the power industry. Especially, we need to consider what kind of organizational structure and form can better adapt to the rapid development of ultra-high voltage power grids in China and the development opportunities it brings.
In today's rapidly developing ultra-high voltage power grid, when further planning China's ultra-high voltage blueprint, we cannot help but notice that due to the non overlapping regions of the two national level power grids, more consideration is given to the development of our company's jurisdictional area in development and planning, and interference in management areas is avoided. This planning approach seriously affects the scientific and rational development and planning of ultra-high voltage in China.
In order to promote the healthy development of China's ultra-high voltage power grid, the merger of State Grid and Southern Power Grid should be actively considered in administrative planning. In terms of administrative management, create a reasonable and suitable management system for the development of ultra-high voltage.
This article is a proposal from the National Committee of the Chinese People's Political Consultative Conference, rather than a research report on the rationality of the power grid system. There is no detailed listing and demonstration of the rationality of separating the operation of the two national power grids and forming a corporate system. This proposal focuses more on the rationality of planning and operation of ultra-high voltage power grids during their development in China. And it is believed that the merger of State Grid and Southern Power Grid into a national level company will be more conducive to the development of ultra-high voltage technology and the development of ultra-high voltage power grids in China. Founder of Energy Watch Wang Xiuqiang
Under the concept of electricity marketization, the country clearly controls the middle and opens up both ends. As a natural monopoly industry, the power grid needs to be supplemented by strong supervision, otherwise forming a network will undoubtedly become a new monopoly. The restructuring of the power grid requires clarifying costs, improving efficiency, and reducing ineffective competition. The power grid should become a service provider for the operation of the power system. Of course, the construction of a power grid requires strict economic and social justification, and the construction of ultra-high voltage is not a sufficient and necessary condition for promoting the merger of power grids. In addition, the construction of the power grid form should be considered from the perspective of promoting energy production and consumption revolution, not only for the benefit of enterprises. The power grid has the attribute of monopolistic operation and has a significant say in cost composition, investment and construction of power grid projects, power dispatching and peak shaving, and power system integration. It needs to be equipped with corresponding regulatory forces. 3. Old employees of the power system
Mr. Cai Guoxiong's suggestion is a very good one. Initially, the country was divided into State Grid and Southern Power Grid for certain historical reasons. Today, the disadvantages outweigh the benefits. Not to mention, it is completely illogical, as if "the country" does not include "the South.". The foreigner looked at the English names of two companies and couldn't understand them at all. From the perspective of the two companies, there is no competition or promotion, and they are just going their own way. Moreover, there may be mutual blockades on some issues, and it is said that even one party's technical research team is working for the other, which has made their own leaders (departments) unhappy.
In terms of construction, major projects are also reinvested repeatedly. For example, State Grid already has two so-called world's largest AC and DC ultra-high voltage test laboratories, and Southern Power Grid will also build another one. Southern Power Grid has built a high altitude UHV laboratory in Yunnan Province, and State Grid has also built a higher altitude UHV laboratory in Xizang. These are all unprecedented and heavily invested constructions in the world. Why can't we coordinate planning and use our country's investment on the cutting edge. For example, the investment in two power companies in Hong Kong, Southern Power Grid invested in China Power Company in Kowloon, Hong Kong, and State Grid invested in Hong Kong Electric Light Company on Hong Kong Island, which is puzzling.
I believe that many working technicians and even some leaders have similar thoughts, "like bones in the throat," but due to the fear of displeasure from their immediate superiors, they can only refrain. I hope that the National Development and Reform Commission and even the State Council can conduct an investigation and make a reasonable decision. The merger of Southern China and State Grid, a commentator in the energy industry, will definitely benefit State Grid. State Grid of China far surpasses Southern Power Grid in terms of asset size, profitability, total investment, personnel composition, regional distribution, and power dispatch capability. Do they agree with this restructuring for Southern Power Grid? Compared with State Grid, Southern Power Grid has higher operational efficiency and marketization level. From the perspective of market-oriented reform, will the market agree?

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