On December 28, 2016, the "2016 Seminar on Coordinated Development of Electricity, Heat and Carbon Markets to Promote Haze Control" was held in Beijing. Cai Guoxiong, Vice Chairman of the Beijing Political Consultative Conference and Deputy Chief Engineer of China Electric Power Research Institute (13.530%, 0.15%, 1.12%), attended and gave a speech. He stated that some energy-saving projects can only be carried out on the basis of time of use electricity pricing, but there are still many regions that do not implement time of use electricity pricing policies. Therefore, policies and mechanisms that truly promote the electricity market to the general public (47.150, 0.50, 1.07%) and open up the electricity market are the real possibilities for implementation.

In addition, he also suggested that leaders use electric vehicles for their vehicles, which can serve as a good role model. He also envisioned that after the free buying and selling of electricity, it could be traded through the C2C model, making the electricity market more marketable than speculation in houses or stocks.

The following is a transcript of the speech:

Cai Guoxiong: I am delighted to participate in this conference and contribute to the haze and climate governance in Beijing.

It's often difficult to simplify complex things, but it's easy to make simple things complex. Today I am trying to explain complex things in a simple way, that is, how our electricity should be managed, how to participate in the big project of how to control haze.

First of all, what I want to say is that the previous speakers all spoke very well, and everyone noticed one thing, which is that there must be a difference between the electricity price during the day and the electricity price at night. If there were no differences, many of the previous projects might not have been implemented. But as we all know, we live in Beijing, and its electricity pricing policy is not time of use pricing, but tiered pricing, which has brought a lot of confusion to Beijing's introduction of many advanced technologies. Although I am one of the leaders in Beijing, I still oppose this policy and hope that Beijing can change its electricity pricing policy. Only by making changes can the project be carried out using the difference in electricity prices between day and night, as mentioned earlier, with the help of heat.

There are already many graphs showing the power variation of electrical energy, and this is a specific graph. We know the total amount of electricity used through tiered pricing, and the implementation of tiered pricing has suppressed the total amount of electricity used. However, the peak electricity consumption will be even more sharp, and the time when people really need electricity is the hottest and coldest, when the air conditioning is fully turned on. Because we know that since the electricity price is the same, why not use this electricity during peak hours? Then the valley will also be lower. Our adoption of such tiered electricity pricing is not conducive to the use of green energy, that is, the use of valley electricity. Just now the spokesperson said that low valley electricity is not considered energy-saving, but rather green and environmentally friendly. I do not quite agree with this viewpoint and viewpoint.

As we all know, the generators and boilers in the power system operate at night. Although they are in a semi shutdown state, they are not turned off. At this time, the power generation efficiency is relatively low. If the power generation efficiency is high, it should be allowed to generate electricity at full load. If we can make full use of valley electricity and reduce peak electricity consumption, it will actually have an energy-saving and environmental protection effect. I think we have achieved not only energy conservation and environmental protection, but also peak shaving and valley filling.

We can also consider a method that combines tiered pricing with time of use pricing. In addition, our ultimate goal for development is not only to change this tiered electricity price to a time of use electricity price, but also to ultimately achieve real-time electricity prices. What does real-time electricity price mean? The stock market is constantly changing, while the electricity market's electricity consumption and generation capacity are constantly changing. Therefore, we hope that the future development direction will be real-time electricity prices. Real time electricity prices have many benefits for this system. Because using real-time electricity pricing can keep the generators in the power generation system at full load.

Today's discussion topic is electricity, heat, and carbon markets. What about the electricity market and heat market earlier? We can see that the main problem with the electricity market is that ordinary people have not participated in electricity trading and buying. How to let ordinary people buy and sell? To put it in simpler terms, people say that you can buy anything on Taobao. I asked if you can buy electricity on Taobao, but they said you can't. If our mechanism can be changed, it is possible to conduct electricity buying and selling on Taobao. How is electricity trading implemented on Taobao? As we all know, there are stock traders and real estate speculators. The central government has clearly stated that houses are not for speculation, but for living in. However, ordinary people still want to speculate. Why? Everyone knows that stir frying has one thing in common, which is to make a profit.