Research On The Reform Of Feed-in Tariff Mechanism In China

Since the 1980s,some Western countries that believe in free capitalism have taken the lead in market-oriented reforms in the power industry.At the same time,as the core part of the power system reform,the reform of electricity price has also been further promoted.The determination of electricity prices by administrative methods has gradually given way to market pricing.At present,the market-oriented reform of electricity has shown a trend of globalization.China’s power system reform began in 2002,but the reform plan for on-grid competition has been stranded.During this period,China relied on the benchmarked feed-in tariff policy of average cost plus reasonable returns to achieve electricity pricing,and the first reform had little effect.In 2015,the state officially announced the resumption of reform,promoted the transformation of the power industry from planned guidance to market competition,and re-pointed the direction for the reform of the feed-in tariff system in China.Facing the new period,the new normal,and the new electricity reform,determine prices,on the power generation side,price determination,approval of power generation projects,and release of power plans will not apply in the future.In particular,the current benchmark on-grid tariff policy will no longer be applicable to competition market.The electricity market needs to design a feed-in tariff mechanism that adapts to the current development status of various types of power sources in China,matches the reform of the electricity system,and meets the basic characteristics of the transition period of the electricity marketization.At the same time,it is necessary to take into account the optimal allocation of electricity market resources and ensure the long-term abundance of power supply.The main research content of this paper is to analyze the reform process and development status of China’s feed-in tariff system,and to realize the optimized design of the feed-in tariff system for coal power generation in the context of power market transformation.This paper first introduces the developments and the latest achievements of theoretical research on feed-in tariffs at home and abroad,and then explains the average cost method under government pricing and the marginal cost method under market competition,the new entry cost method,and the net revenue method to provide an analytical model of government pricing and market pricing.Secondly,starting from the current development status of on-grid tariff for coal power,this paper analyzes the main problems faced by China’s current power price reforms,especially coal power generation on-grid tariff reforms.Finally,combining the current development situation of China’s electricity market and the successful experience of foreign reforms,this paper formed the design idea and basic analysis framework of the feed-in tariff mechanism in the electricity market-oriented environment.The coal power generation pricing mechanism was analyzed through specific cases,and proposed four specific policy recommendations:put forward three steps to realize market-oriented electricity price reforms,prioritize coal-fired power generation feed-in tariff reforms,improve marginal cost pricing mechanisms in the electricity spot market,and promote the establishment of capacity mechanisms in suitable regions.This paper comprehensively uses a variety of feed-in tariff pricing methods under government pricing and market bidding,analyzes the existing problems in China’s feed-in tariff policies,and proposes design ideas and policy recommendations for feed-in tariff mechanisms in the electricity market environment.The research results of this paper have certain reference significance for the marginal cost pricing of the power generation market and fixed capital recovery in the medium and long-term market,and puts forward policy suggestions for the reform of the feed-in tariff mechanism in line with the current situation,and has contributed to the reform of the feed-in tariff mechanism in the transition period of China’s electricity market.