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CEC: Building Robust and Smart Grid Is Key to Transformation

Author:  Source:   Published time: March 30, 2011  


“The key to transforming the model for power development is to build a UHV backbone network featuring harmonious DC and AC development and rational structure and distribution and a robust grid effective in resource allocation, strong in safeguarding against risks, and with advanced technology and equipment,” said Liu Zhenya at 2011 Economic Situation and Power Development Analysis and Prediction Conference on March 26. Liu is chairman of CEC (China Electricity Council), secretary of Leading Party Group and general manager of State Grid. 


March 26-27 at 2011 Economic Situation and Power Development Analysis and Prediction Conference sponsored by CEC, the attendees discussed important issues relevant with energy and power development by analyzing the macroeconomic situation in China. The meeting was attended by Liu Zhenya, chairman of CEC (China Electricity Council), secretary of Leading Party Group and general manager of State Grid, Su Bo, deputy minister of Industry and Information Technology, 400 representatives from major power enterprises, and some senior experts. 


Liu delivered the keynote speech for the conference. After summarizing the splendid development achievements of the electric power industry in the 11th Five-Year Plan period, he analyzed the problems currently with the power industry and systematically discusses major measures for speeding up the transformation of the power development model and promoting the reform of power production and utility methods. According to him, despite the rapidly growing demand for energy and electric power, the development of the electric power industry is faced with some fundamental problems, for example, unreasonable methods for energy transmission, problematic power structure, imperfect mechanism for unified planning and coordinated development, unreasonable pricing mechanism, coordinated development mechanism not yet established, and inadequate ability of enterprises to grow in a sustainable manner.  


As pointed out by Liu, a new energy reform is driven by the development of clean energy and smart grids worldwide. To solve the above-mentioned problems, we must, by further implementing the worldview of scientific development, quicken the transformation of the power development model and promote the reform in energy production and utility methods. He added that transformation of the economic development model in China will be the direction in the 12th Five-Year Plan period. To make the transformation happen, it is necessary to transform the model of energy development. The key to this transformation of the energy development model is to change the resource allocation method overly dependent on coal and the power development model of local balance and promote the reform in the methods for energy production and utility. It is necessary to expedite the establishment of a modern grid system to meet the requirements for the integrated development of various large energy bases and outbound transmission of clean power and power demand for socioeconomic development and people’s daily lives. Therefore, it is necessary to implement the strategy of “one backbone grid with four large bases (a UHV backbone grid with a large coal power base, a large hydropower base, a large nuclear power base, and a large renewable energy base)” , to speed up the development of a robust smart grid, comprehensively optimize power layout and structure, take the guarantee of power safety as the precondition for development, support and lead the transformation of the development model with technological innovation, achieving total improvement in terms of development quality, capability, and economic benefits in the electric power industry. 


In his speech, Su Bo, deputy minister of Industry and Information Technology, systematically analyzed the national and international situations in industrial development in China during the coming 12th Five-Year Plan Period and discussed the overall thinking of industrial transformation and upgrade in China, priorities, and the development of the energy equipment industry. In the coming five years, strategic and emerging industries will be fostered and developed by formulating ad hoc plans, implementing special key technology projects, perfecting the industry chain as well as technological standards and industry access, promoting market-based applications, and guiding local plans. 


The attending experts made reports on such topics as Chinese economic development, industrial development situation and planning, international situation in addressing climate change, reform in Chinese finance and tax, transformation of the electric power development model, plan of electric power development, and electric power industry development constrained by resources and the environment.