TAIYUAN, Aug. 22 (Xinhua) - Shanxi Province is to introduce private investment in electricity sales business as a measure to further deepen power system reform, according to Shanxi Provincial Commission of Economy and Information Technology.
To diverse market players and introduce competition mechanism, Shanxi Province will encourage private investors to found independent electricity sales company and allow them to buy electricity from power generators and sell to ultimate consumers. Shanxi will allow power producers, distributed power producers, public service and energy saving service companies, high-tech zones, economic development zones, and circular economic zones to set up independent electricity sales company and conduct electricity sales business.
In 2016-2017, Shanxi will complete market-oriented power transmission and distribution pricing and cultivate a power market with diverse participants. Shanxi will also improve its direct power purchase mechanism, targeting to increase direct power trade to weigh 30 percent of total power trade of the province, and pilot cross-regional and -provincial direct power trade. Shanxi will probe into regional power grid operating mode, encourage mixed-ownership in developing power distribution business, and improve off-peak subsidizing market mechanism.
In 2018-2020, Shanxi will remove control over mid- and long-term direct power trade, acquire more cross-regional and -provincial direct power trade quota, and encourage its power producers to establish mid- and long-tern cooperation with power uses in other provinces. Meanwhile, Shanxi will launch spot trade for electricity, establish Shanxi electricity power financial trade platform, and gradually involve electricity capacity market, electricity futures and derivatives into the trading system. (Contributed by Li Xiaohui, Lv Mengqi, lixh@xinhua.org)
A single purchase
