[Cable Network News] Recently, the National Energy Administration issued the The working scheme of ancillary service compensation (market) mechanism proposes that the full coverage of power ancillary service compensation will be achieved.

Power market ancillary services refer to services provided by power generation enterprises, power grid management enterprises and power users in addition to normal power production, transmission and use in order to maintain the safe and stable operation of the power system and ensure power quality. In order to ensure the safe, stable, high-quality and economic operation of the power system, ensure the quality of power, and standardize the management of auxiliary power services. At present, the compensation mechanism for auxiliary power services has been basically completed nationwide except for Tibet, and the operation effect is generally good, laying a foundation for further promoting the construction of the power market.
Since the former State Electricity Regulatory Commission issued the Interim Measures for the Administration of Auxiliary Services of Grid connected Power Plants in November 2006, the power supply situation in China has changed significantly in the past decade. The relevant person in charge of the National Energy Administration said that at present, China's overall power supply capacity is surplus, the utilization hours of coal power units are gradually declining, and problems such as wind abandonment, light abandonment, water abandonment, nuclear restriction, system peak shaving and electric heating contradiction in heating season are prominent in some areas. Part of the current compensation methods for auxiliary power services have been difficult to meet the actual needs, and it is urgent to further improve and deepen the compensation (market) mechanism for auxiliary power services.
For this reason, the Plan emphasizes that in order to achieve full coverage of power auxiliary service compensation projects, all projects specified in the Interim Measures for the Management of Auxiliary Services of Grid connected Power Plants should be included in the scope of power auxiliary service compensation. If the automatic power generation control, peak shaving and other services in some regions are not compensated, the relevant rules and provisions of the detailed rules for the implementation of the auxiliary service management of the regional grid connected power plants should be supplemented and improved, and should be effectively implemented into production and operation.
The Plan points out that all generator units dispatched by power dispatching organizations at provincial level and above should be included in the scope of power auxiliary service management. In some areas where nuclear power, cogeneration, hydropower, wind power, photovoltaic power generation and other power generating units are not included in the scope of power auxiliary service management or separate accounts for different types of units, it is necessary to improve the relevant content, implement rules, strengthen supervision, and promote all types of power generating units to undertake power auxiliary service obligations fairly on the same platform.
In addition, the Plan also points out that it is necessary to encourage the use of competitive methods to determine the units to undertake auxiliary power services, encourage energy storage equipment and demand side resources to participate in the provision of auxiliary power services, and allow third parties to participate in the provision of auxiliary power services.