Electricity Regulatory Commission: Competition Needs to Play a Big Role in Grid Cost Control

According to a notice issued by the State Electricity Regulatory Commission of the PRC on the 15th, the construction cost of the final project of the power project during the "Eleventh Five-Year Plan" period was 1.4% lower than that of the "10th Five-Year Plan" period, and the hydropower project was up 19.08%. AC transmission line engineering Up 17.93%, AC substation project decreased by 1.35%. The Electricity Regulatory Commission stated that market competition still needs to play a greater role in controlling the cost of power grid projects.

In order to strengthen the supervision of the cost of power engineering construction and effectively promote the control of the price of electricity, the State Electricity Regulatory Commission will put into operation a thermal power project with a capacity of 12MW or above, a hydropower project with an installed capacity of 10MW or more, and a water conservancy hub with power generation capacity that will be put into operation nationwide during the “11th Five Year Plan” period. Engineering and avionics hub projects, wind power projects, nuclear power projects, 110kV to 750kV power transmission and transformation projects, and UHV AC and DC transmission project construction costs were monitored off-site, and relevant data were analyzed. Judging from the situation of cost control, the total cost of China's power engineering units was put into operation during the “Eleventh Five-Year Plan” period, thermal power projects generally showed a declining trend, and hydropower projects generally showed a rising trend. Wind power projects began to show a downward trend after continuous increase, and the overall AC transmission line project With an upward trend, AC substations generally show a downward trend.

The Electricity Regulatory Commission stated that the effectiveness of China's power project construction cost control during the "Eleventh Five-Year" period has been remarkable. During the period, the power grid companies took some measures to reduce the project cost, and the market competition mechanism played a role in the grid engineering, especially the cross-regional networking project cost control. But overall, compared with the power generation enterprises, there is a certain gap between the internal driving force of the grid company's cost control, and the mechanism for the market-based cost of power grid engineering needs further improvement.