Sichuan clarifies matters related to the 2022 annual external power transmission trading

Recently, the Department of Economy and Information Technology of Sichuan Province issued a clear letter on matters related to the 2022 annual external power transmission transaction. It pointed out that the hydropower enterprises and installed capacity participating in the 2022 annual external transmission transaction shall be subject to production and operation before November 30, 2021. Hydropower enterprises that have not generated electricity on the main grid during the 2021 flood season shall not be arranged to participate in the 2022 external transmission transaction temporarily. The installed capacity of grid adjustment shall be determined according to the capacity of Liuchuan. Multi year regulating reservoir power stations (Buxi Cascade, Shuiujia, Wawushan, Yele, Lianghekou) and Baozhusi, Tingzikou, Liziping, and Daqiao power stations shall be arranged according to 30% of the installed capacity. (Water and electricity enterprises and installed capacity are shown in the attachment). Hydroelectric units put into operation after November 30, 2021 may participate in outsourcing transactions organized after 2022 based on their commissioning time, with specific regulations to be clarified separately.

The details are as follows:

Letter on Clarifying Matters Related to 2022 Annual Outward Electricity Transmission Trading

State Grid Southwest Branch, State Grid Sichuan Electric Power Company, Sichuan Electric Power Trading Center, and various centralized and decentralized hydropower enterprises:

According to the requirements of the National Development and Reform Commission's "Six Sign" work for medium and long-term electricity contracts in 2022, Sichuan hydropower transmission transactions for 2022 will be organized gradually in the near future. In order to further strengthen the management of Sichuan power transmission, prioritize the supply within the province, reasonably determine the scale of transmission, leverage the advantages of Sichuan's hydropower resources, take into account both domestic and foreign markets, maintain the long-term and overall interests of power grid plants, and ensure the orderly conduct of transmission transactions in 2022, the relevant matters are hereby notified as follows.

1、 The hydropower enterprises and installed capacity participating in the 2022 annual external transmission transaction shall be subject to production and operation before November 30, 2021. Hydropower enterprises that have not generated electricity on the main grid during the 2021 flood season shall not be arranged to participate in the 2022 external transmission transaction. The installed capacity of the grid adjustment shall be determined according to the capacity of Liuchuan. Multi year regulating reservoir power stations (Buxi Cascade, Shuiujia, Wawushan, Yele, Lianghekou) and Baozhusi, Tingzikou, Liziping, and Daqiao power stations shall be arranged at 30% of the installed capacity. (Water and electricity enterprises and installed capacity are shown in the attachment). Hydroelectric units put into operation after November 30, 2021 may participate in outsourcing transactions organized after 2022 based on their commissioning time, with specific regulations to be clarified separately.

2、 Based on the supply and demand situation of electricity in our province and the promotion of marketization, power generation enterprises should prioritize meeting the guarantee of electricity supply within the province, prioritizing the purchase of electricity within the province, and participating in the provincial market, and then participate in external transmission transactions based on surplus power generation capacity. Priority should be given to ensuring the completion of intergovernmental agreements (including national mandatory plans and power grid agreements, the same below) for the transmission of Sichuan power, and to prioritizing provinces that support Sichuan during the dry season and provide power transmission to Sichuan. We must adhere to the principle of "online to online" as the main approach, with other methods as effective supplements. In 2022, for recipient regions that have signed intergovernmental agreements and have sufficient monthly Sichuan outbound capabilities, we will carry out monthly online supplementary transactions and temporarily refrain from other forms of transactions. Support market entities to organize market-oriented outsourcing transactions in other recipient regions without signed intergovernmental agreements, provided that there is space in the monthly channel and Sichuan Hydropower has the capability, while complying with the basic requirements of Sichuan Power Outward Transmission. The transaction price should generally refer to the minimum agreement price for outsourcing that has been clearly stated in the intergovernmental agreement.

3、 In order to promote the optimization of clean energy allocation on a larger scale and reflect the value of Sichuan hydropower, in the event of water abandonment and surplus channel capacity in the current period, we will support the vigorous development of inter provincial renewable energy incremental spot trading, and the trading price shall not be lower than the highest limit of the conventional trading price in the province during the flood season.

4、 In order to prevent disorderly competition, reasonably guide the behavior of market entities, and safeguard the overall and long-term reasonable interests of Sichuan hydropower enterprises, in accordance with the requirements of the "Notice of the Sichuan Provincial Department of Economy and Information Technology on Further Regulating the Market oriented Trading of Inter provincial Point to Point Electricity" (Chuanjingxin Electric Power Letter [2019] No. 490) and the "Notice of the Sichuan Provincial Department of Economy and Information Technology on Further Strengthening the Management of Sichuan Power Transmission Trading", enterprises that do not comply with the requirements for external transmission will be notified, and the priority electricity consumption of participating power generation enterprises during the flood season will be reduced by 1.5 times.

5、 In the later stage of safety verification, if there is insufficient power generation capacity in Sichuan and it is necessary to reduce annual external transmission transactions, State Grid Southwest Branch and State Grid Sichuan Electric Power Company should prioritize ensuring the implementation of the agreed electricity quantity between governments. In specific implementation, the grid regulated hydropower and provincial regulated hydropower should be executed according to the same progress ratio.

6、 Please strengthen the connection between State Grid Southwest Branch and Sichuan Electric Power Trading Center and Beijing Electric Power Trading Center according to the above requirements, and cooperate to do a good job in the 2022 annual external power transmission trading and monthly network to network supplementary trading. The final transaction (verification, adjustment, etc.) results shall be reported to our department, and major issues that occur during the organization and implementation shall be promptly reported to our department for coordination and handling.

Attachment: Table of Water and Electricity Installed Capacity for Participating in the Unified Dispatch and Distribution of Outward Transmission in 2022

Sichuan Provincial Department of Economy and Information Technology