Study On The Mode Of Small Hydropower Purchase In Guizhou Power Grid Company

Since 2002 China began to reform the power system and separate the generation from the power system, purchasing electricity has become the core business of Power Grid Company. It is the premise and foundation of the Power Grid Corp to meet customers demand for electricity and provide reliable service for clients. At present, the electric power system reform continues to advance, electricity purchase work also needs to adapt to the change of situation and policy, environment and other factors, and constantly adjust, improve and perfect. Since 2007, in Guizhou province, local governments transferred the assets of their own distribution network to Guizhou Power Grid Corp one after another. By the end of 2013, only 1 county electric power company still maintained wholesale escrow form, the other 87 county-level power supply enterprises has been owned and managed by the Guizhou Power Grid Corp. Because of the re definition of the power network assets, the research and improvement of the small hydropower purchase mode of Guizhou Power Grid Corp become possible.This paper applied the relevant theories of transaction cost economics of Williamson and considered two basic analysis units, i.e., i) the transaction between the county power supply enterprise under various purchasing mode and small hydro power generation enterprises, ii) the transaction between the regional power supply bureau and the county power supply enterprise. Based on literature review, business investigation, data analysis and induction, this paper made an intensive analysis and investigation on the asset specificity of transaction, transaction uncertainty, transaction frequency and transaction contract signing, with comparative analysis method. The results of the study show that, the mode of purchasing electricity of small hydropower by the provincial company uniformly matches the present organization structure of Guizhou Power Grid Corp better. The new small hydropower electricity purchasing mode can effectively reduce the transaction procedures, improve the efficiency of the transaction, save the cost of Inter Organizational transactions, obtain the maximum efficiency benefits for the enterprise, and fundamentally solve the current problem of small hydropower management existing in the purchase of electricity. It can not only improve the purchasing management level of Guizhou Power Grid Corp, but also optimize the purchase cost to some extent.The results of this study can directly guide the purchase management of small hydropower in Guizhou Power Grid Corp, and provide reference for other similar Power Grid Corp.