Yang Kun's Thoughts on issues related to power development during the 14th Five-Year Plan

According to Yang Kun, the development of the power industry during the 14th five-year presented the following new characteristics:

1. Power generation mix continues to develop towards clean and low-carbon. On the one hand, the development of non-fossil energy has entered into a large-scale  phase of "incremental substitution". In 2018, half of the global newly added installed capacity of non-fossil energy was in China. On the other hand, the proportion of large capacity, advanced parameter, energy-saving and environmental friendly units in China has increased significantly.

2. Electrification of terminal energy consumption has continued to increase. In 2018, the proportion of electricity in terminal energy consumption reached 25.5%, an increase of 4.2 percentage points from 2010.

3. Digital and intelligent technology is gradually integrated into the power system, and the flexibility of the system is constantly enhanced. Electric power enterprises actively promote the integration of the achievements of new generation information & digital technology with the industry, and the State Grid Corporation of China also proposes to build "Ubiquitous Internet of Things".

4. International cooperation on energy and electricity is the important foundation and basis for "the Belt and Road" initiative. The investment and trade in energy and electricity infrastructure between China and the countries along the route are on the rise, and the concept of global energy Internet has also been widely recognized.

5. The reform of the power system has made solid and steady progress. The proportion of market-oriented transactions has increased significantly, and the reform of the incremental power distribution business has accelerated.

Yang Kun's understanding of the issues related to power development during the "14th Five-Year Plan" is as follows:

1.Power demand has a large growth space. China's economy is in the middle and late period of industrialization and the rapid stage of urbanization, which determines the continuous and rigid growth of power demand.

2.Clean and low-carbon power generation mix is further improved. It is estimated that by 2035, the installed capacity of power generation will reach 3800GW, and the power generation of non-fossil energy will surpass that of fossil energy in an all-round way.

3.With the sustainable and rapid development of new energy, attention should be paid to the issue of electricity consumption. With the rapid development of new energy in China, the wind curtailment rate is up to 17.2% and the PV curtailment rate is up to 13.0%. A series of measures have been taken in recent years to effectively alleviate the problem of new energy curtailment. However, the problem of consumption is still prominent in the provinces where the proportion of new energy power generation is high. Solving the problem of new energy consumption requires multiple measures to improve the capacity of system regulation and consumption.

4.Promote the safe and efficient development of nuclear power and effectively replace coal-fired power. Compared with new energy and coal-fired power, nuclear power has comparative advantages. First, we need to establish the strategic position of nuclear power and maintain the pace of nuclear power construction. Second, we need to strengthen the support of nuclear power and focus on improving relevant policies. Third, we need to cultivate excellent nuclear safety culture and establish a standard system of nuclear power.

5.Take coordinated measures to promote high-quality development of hydropower in southwest China. Sichuan, Yunnan and Tibet are extremely rich in hydropower resources and the current exploitation rate is less than 38%. Compared with developed countries, there is still much space for hydropower development.

6.The role of coal-fired power in the system will be transformed into adjustable power source. In order to support the new energy consumption and system operation, the market positioning of coal-fired power will gradually change from the main power source to the adjustable power source providing reliable capacity, generation and flexibility.

7. Jointly improve the comprehensive adjustment ability of the system from the supply side and the consumption side. The supply side should promote the flexible transformation of coal-fired power: first, increase the compensation for ancillary services; second, improve the compensation policy; and third, strengthen planning and guidance. On the consumption side, it is necessary to strengthen demand-side management and improve user-side flexibility.

8. Deepen the reform of electricity marketization and promote the formation of a scientific electricity price mechanism. Accelerate the construction of the national power market and break down inter-provincial barriers and market segmentation.

9. Strengthen the evaluation of indicators in high-quality power development. The high-quality development of energy and power involves many aspects and demands high requirements, and it is recommended that relevant authorities complete and launch an evaluation index system that reflects the characteristics of safety, green, high efficiency, innovation, openness, and sharing.