The first batch of incremental power distribution reform pilots will be launched

As one of the highlights of the new round of power system reform, the power distribution reform will enter a substantive operational phase. The "Economic Information Daily" reporter learned that the National Development and Reform Commission plans to set up about 100 pilot projects in the country to attract social capital investment in incremental power distribution business. At present, the number of reports submitted by provinces exceeds 160, and the industrial parks become popular "test fields". The National Development and Reform Commission will complete the screening approval and the first batch of pilot projects will be on the way.
The industry believes that the distribution network is a scarce resource to solve the "last mile" problem of power trading, and the sales and distribution integrated sales model is the most competitive. The distribution network assets of non-grid enterprises are in hot pursuit. It is difficult for social capital to make joint ventures or complete new distribution projects with grid companies, and it will be more inclined to reorganize and acquire stock distribution network assets.
Previously, due to the core interests of the grid companies, the relatively slow distribution of power distribution reforms has accelerated significantly this year. On October 11th, the “Management Measures for the Distribution of Distribution Network Businesses” was issued. It is clear that the distribution network refers to the 110 kV and below voltage level grids and the 220 (330) kV and below voltage grade industrial parks (economic development). District) and other local power grids. Except for the inventory assets of power grid enterprises, the stock distribution networks invested, constructed and operated by other enterprises belong to the new distribution network. Just two days later, Shanxi released the first provincial-level incremental distribution network business management method to further refine the relevant regulations.
At the same time that supporting documents were issued, the pilots also accelerated. In August, the National Development and Reform Commission asked the provinces to report 3 to 5 incremental power distribution pilot projects, using the PPP model to jointly invest by local governments and social capital. The reporter of the "Economic Information Daily" learned in the interview that local governments have a strong willingness to use the electricity reform to reduce the cost of industry and commerce and to invest in the distribution network to stimulate GDP. From the perspective of enterprises, the distribution network is the core asset of the power market. In the future, it can be combined with distributed energy and micro-grid. It is a major profit point and the participation of all parties is high.
Judging from the projects reported in various places, the main focus is on the campus-type regional power grid. For example, Jiangsu reported five incremental distribution network reform pilot projects in Nanjing Jiangning Development Zone, Nantong Tongzhou Bay, Suqian Port Park, Lianyungang Xujing New District, and Yangzhong Development Zone. Anhui’s list includes Ningguo Economic and Technological Development Zone Heli. Park, Huaibei Economic Development Zone, Jinzhai Modern Industrial Park, Tongling Modern Industrial Park, Anhui Hexian Industrial Park, and Mohekou Industrial Park, Handan City.
It is worth noting that the investment entities of these projects are mostly the park management committee, the investment group of the local SASAC, and local energy enterprises. “These projects are completely dominated by local governments. The listed companies in the power grid will not have obvious advantages in this round of reforms. The five major power generation and local energy platforms have inherent advantages and will replace the grid to dominate incremental distribution projects within the framework of local governments. "Industry Securities Su Chen team said that in the initial stage, the transmission and distribution price of the incremental distribution network will refer to the transmission and distribution prices approved by the provinces. Later, the National Development and Reform Commission will consider the introduction of provincial-level park benchmark electricity prices. For some projects with relatively low net electricity consumption, the yield may not be guaranteed. Therefore, the NDRC may join the Ministry of Finance to ensure that the investment in basic facilities such as rural power grids is in place.
Informed persons involved in related work disclosed to the "Economic Information Daily" reporter that since the end of September, the National Development and Reform Commission has solicited opinions from relevant parties such as the power grid on the incremental power distribution projects reported by the provinces. The medium-sized principle was further screened, and some projects were approved by the grid, but with conditions attached. This week, the National Development and Reform Commission approved the research, and the first batch of pilots will soon land.
It is understood that China's distribution network investment accounts for only 53.55% of the grid investment, while the developed country is stable at more than 60%. According to the "Asset Action Plan for Distribution Network Reconstruction (2015-2020)" issued by the National Energy Administration last year, from 2015 to 2020, the investment in construction and transformation of China's distribution network is not less than 2 trillion yuan, "13th Five-Year Plan" The accumulated investment during the period is not less than 1.7 trillion yuan. Based on 100 pilot projects, the total investment is expected to reach 50 billion to 100 billion yuan.
In the investigation, Huachuang’s new Zhang Wenbo team learned that it is difficult for social capital to make joint ventures or complete new distribution projects with grid companies. Under such conditions, the distribution network assets owned by non-grid enterprises are becoming hot assets, and the distribution (distribution) and distribution of the integrated sales model is the most competitive. In order to obtain scarce distribution network resources, social capital and grid enterprises will be more inclined to reorganize mergers and acquisitions of stock distribution network assets, followed by market demand for distribution network upgrades. Park-type sales companies can build a distribution-based business model through acquisitions and share-stock distribution network projects.