Thermal power on-grid tariffs must pay attention to internal balance

The National Development and Reform Commission recently issued a notice and decided to adjust the renewable energy price additional standard and the environmental protection electricity price from September 25 onwards. In general, this adjustment will not only mobilize the enthusiasm of power companies in implementing denitrification and dust removal facilities. The greater significance is that this indicates that China has already formed a relatively complete environmental protection electricity price system, and structural adjustments will also appear in the on-grid electricity price of thermal power.

“All along, the introduction of a higher denitrification price is a common expectation in the industry. Now it's been a relief to the power plant to a certain extent.” In an interview, Han Jianhua, deputy director of Huaneng Qinling Power Plant Production Management Department, was quite representative. Since the implementation of the denitrification price of 0.8 points per kilowatt-hour in 2011, the industry generally reflected that the subsidy standard was unable to make up for the cost of denitration equipment installed in coal-fired power plants. This time, the denitrification price was raised to 1 point per kilowatt-hour, which can be said It is a concrete measure for the policy department to “think of what the power plant thinks and how to solve the power plant”.

Yupei Peipei, an engineer at the State Grid Energy Research Institute, told reporters that under the background that the country's thermal power plant flue gas denitrification has entered a concentrated outbreak period, the adjustment of the environmental protection electricity price will significantly increase the enthusiasm of the power generation enterprises to implement denitrification and dust removal facility renovation.

It is worth noting that the adjustment of electricity prices focuses on “promoting environmental protection”, which is mainly achieved through the adjustment of on-grid electricity prices of coal-fired power generation companies. You Pei Pei analysis, this space for structural adjustment comes from the reduction of coal-fired unit benchmarking grid electricity prices vacated space. The funds vacated here are used on the one hand for renewable energy price-adding funds and on the other hand to increase denitrification and dust-removal prices. The implication is that the adjustment of the electricity price is mainly to adjust the electricity price structure of the power company itself, and it will not increase the sales price level. “The policy is currently studying how to make the space for the benchmarking price cut for coal-fired units to be in balance with the renewable energy price-adding funds, denitrification, and dust-removal price increase. The specific plan must wait until the provincial-level price authorities report the plans before they can be formulated.” Youpei Pei said.

Overthrowing "One size fits all" is impossible

Will the denitrification electricity price increase to 1 point per kilowatt-hour and will it balance the cost pressure of the power plant? Han Jianhua introduced that the new No. 7 660,000 kilowatts unit of Qineng Power Plant in Shaanxi Qineng Power Plant has simultaneously constructed a desulfurization and denitrification device. The denitrification device construction cost is 64.95 million yuan, and the denitrification according to 0.8 points/kWh.

Electricity prices, maintenance costs are slightly insufficient. In order to meet the latest "Emission Standards for Air Pollutants from Thermal Power Plants", the company is currently expected to invest a further 16.48 million yuan in denitrification and efficiency improvement. “The redevelopment of the crew will obviously increase the cost of consumption, but now the policy will increase the denitrification price, and overall, it will basically be able to cover most of the denitrification operating costs of the power plant.” The environmental protection specialist of the other plant expressed to reporters. The same view.

In this regard, Youpei Pei and Lin Boqiang, director of the China Energy Economic Research Center of Xiamen University, share the same view. They said that they expect denitrification at 1 point/kWh with the advancement of denitrification reform and the impact of technological progress and cost reductions. Subsidies can basically meet the needs.

As for the currently controversial environmental protection electricity price subsidy mechanism, it still adopts a one-size-fits-all approach. Youpei Pei believes that due to the differences among provinces, there are some areas where the contradictions between denitrification and dust removal are relatively large, and it is not ruled out how many coal-fired units are reduced. The possibility of benchmarking price, but for the external expectations of different unit capacity, different regional units to implement the differential denitrification price, it is not possible, "because the division is too fine, it may not be conducive to the improvement of efficiency and effective implementation of the policy."

Environmental protection facilities need to pay attention to the impact of power plant energy consumption

The current price adjustment indicates that the policy department intends to use the price mechanism to guide the upgrading of the energy industry structure and green development. It also reflects China's determination to control haze and improve the quality of the atmospheric environment. For the power plant, while paying full attention to environmental protection, it should also increase its attention to energy consumption.

Fu Shaohua, an environmental protection specialist in the production department of Fujian Huadian Fuping Thermal Power Co., Ltd., revealed to reporters that the operation of the environmental protection facilities such as desulfurization, denitrification, and dust removal will affect the energy consumption of the power plant itself, including increasing the plant electricity rate and the power consumption.

This is not a theoretical assumption. Han Jianhua revealed that the plant's electricity consumption rate for desulfurization plant operation of 660,000 units is between 0.7% and 1%. The plant electricity consumption rate is also directly related to the level of coal consumption for coal-fired power plants. The higher the electricity rate, the higher the consumption of coal for power supply.

Under the current background of significant increase in various operating costs, the optimization of the technical and economic indicators of the unit will contribute substantial economic benefits to the power companies. Of course, at present, some power plants have begun to improve the unit's operating efficiency through various energy-saving optimization measures to reduce the unit's energy consumption, such as selecting dust removal technologies and equipment with lower energy consumption and optimizing the desulfurization system facilities. However, the reality is that for power plants that are stepping up their technological transformation, “the best way to meet the discharge standards is to be the first. All others are relegated to the second line.”

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