Electric reform program blows sound system reform horn

The introduction of the new electricity reform plan has entered a countdown. Recently, the National Energy Administration confirmed for the first time that the new power reform plan will soon be announced.

Analysts said that many large-scale power generation companies are preparing to enter the power sales market, which will lead to redistribution of profits in the thermal power industry, and the hydropower industry will be one of the biggest winners in the marketization of power generation. Electric power reform is expected to open up new business models and business cycle for the power industry.

The Minsheng Securities Research Report pointed out that this new power reform program will sound the horn of the energy system reform and is an important part of the energy system reform. The power and new energy sector will usher in a new round of theme investment opportunities.

In fact, before the new electricity reform plan is about to come out, natural gas reform has already broken ice ahead of schedule. The National Development and Reform Commission announced that starting from April 1, China's natural gas prices will formally merge.

It is understood that oil and gas reform is one of the important issues in China's energy sector reform this year. The relevant reform programs are under study and formulation, and it is expected to be introduced in the first half of this year at the earliest.

"Lower oil prices will help ease the resistance of China's oil and gas sector reform process," said Heng Kun, an analyst at Anxin Securities. The process of "three barrels of oil" in mixed ownership reform will continue. The elimination of the monopoly of the upstream sector, especially the further orderly release of crude oil import rights, remains the top priority. The local refining enterprises and private enterprises that have oil and gas assets overseas will benefit.

As for power reform, Wang Wei, an analyst with Guotai Junan, said that liberalization of price control is the precondition for realizing the reform of the electric power system, and the realization of a market-based electricity price formation mechanism and electric power industry operation model is also the goal of electric power system reform. The release of tariff regulation is conducive to the increase of on-grid tariffs for hydropower companies and the gradual realization of homogeneous prices. At the same time, it will also aggravate the internal competition differentiation of thermal power companies, and large-scale thermal power companies with high energy efficiency and thermal power companies with dominant node layout will benefit.

Surprisingly, with the implementation and deepening of Shenzhen's transmission and distribution price reform pilots, more regions are expected to be included in the scope of the pilot. The trials for transmission and distribution will be gradually expanded, and sales-side reform will be fully implemented. For companies engaged in transmission and distribution business, the sales side has a huge market space and has become a new focus of competition for many power companies.

In Wang Wei’s view, there will be redistribution of profits within the thermal power industry, and the hydropower industry will be

One of the biggest winners in electricity marketization, the valuation of hydropower stocks will be boosted by electric reform, and there will be a systematic valuation increase and even a premium; local mini-grid companies will be another big winner in electricity reform. It is that they will have more options for exporting electricity and purchasing electricity. They may gradually open their doors to expand in other places.

In addition, “the impact of the reform of the electric power system on the A-share power sector may bring about large investment opportunities even at the initial stage of the reform, even though it is expected.” Wang Wei believes.

There is no doubt that the step-by-step advancement of electric power reform will bring about tremendous changes to the traditional electric power industry.

According to industry insiders, the power reform, the state-owned enterprise reform, and the interest rate cut cycle have opened up new business models and business cycles for the power industry, and are expected to get rid of the traditional coal-electricity game pattern. Under the new normal state of power, competitive and outstanding companies are expected to emerge.

What needs to be mentioned is that despite the progress of electric reform, Shen Meng, executive director of Chanson Capital, is worried that the new electric power reform will ultimately be less of a thunderstorm than rain. He said that after the introduction of the new power reform program, it still needs a period of time. Time will be out of details.

The above-mentioned personages in the industry also mentioned that the framework for the “four release, one independence, and one strengthening” of the new power reform program has been basically determined, and the key lies in the implementation of the next detailed implementation rules and pilot work.

Original title: New electricity reform plan announced soon Power industry will welcome new economic cycle The oil and gas related reform plan is expected to be introduced in the first half of this year.