Jinwu Financial News | CITIC Securities said it will improve the price mechanism in the auxiliary services market and continue to advance electricity reform. The National Development and Reform Commission and the Energy Administration recently jointly issued the “Notice on Establishing and Improving the Market Price Mechanism for Auxiliary Electricity Services”. The relevant policies will be implemented on March 1, 2024. The main contents of the “Notice” include: optimizing transactions and price mechanisms for auxiliary services such as peak shifting, frequency modulation, backup, etc.; standardizing price transmission for auxiliary services; and strengthening policy support guarantees, etc.
According to the bank, for the first time, it has established and perfected the price formation and transmission mechanism for the auxiliary services market at the national level, and the continuous deepening of electricity reform has taken another important step. By reflecting the true and reasonable value of power auxiliary service products and rationally conveying them to end users through market means, various types of power sources with flexible adjustment capabilities can be effectively encouraged to provide auxiliary services required for power systems and obtain reasonable returns in response. The prosperity and development of the auxiliary services market will help the transformation of thermal power to a regulated power source and the utilization of hydropower resource endowments, effectively promote demand-side responsive development, and better promote the consumption of new energy sources. Focus on Changjiang Electric Power (600900), SDIC Power (600886), Huaneng International (00902; 600011), Huadian International (01071; 600027), Longyuan Electric Power (00916; 001289), etc.