Author(s)

Runhua Wang

Corresponding Author

Runhua Wang

ABSTRACT

The development of electric power industry was destined to have a transition from a natural monopoly to competition in the market, the situation of natural monopoly is not suitable for China's national conditions today, the electric power market reform is a complex process, the complexity of the power grid and the real-time balance of producing and using electricity to electricity market reform has brought problems such as difficult problem. So, the necessity and feasibility of carrying out the power market reform are open to question. Since the early 1990s, the construction of the power market has lasted for more than 30 years, and the pace of reform has spread all over the world. Although different countries in the form of market-oriented reform and the background are different, but the whole route all roads lead to Rome, which is to electric power industry as the carrier, give full play to the role of the market economy, so as to optimize the allocation of resources and energy conservation and emissions reduction, improve the production efficiency of the electric power industry, so as to improve the system of electric power to promote the benign development of the power industry. China's marketization process started late and faced many difficulties. Since 2002, when China State Council formally approved the "electric power system reform plan", China's electric power industry has undergone more than ten years of reform, gradually breaking the historic monopoly situation, and initially forming a diversified competition pattern in the electric power market. However, due to the complexity of the power industry itself, imperfect trading system and imperfect market pricing mechanism and many other factors seriously hinder the construction of the power market. Although the course of marketization is faced with many difficulties, but it is urgent to promote the reform of the power system. This article will analyze the necessity and feasibility of China electricity market reform.

KEYWORDS

Electric power system reform, Electric power market