According to the request of the Electricity Act amendment, the electricity industry is divided into power generation, transmission and distribution, and retailing. As well, the Electricity Act amendment also initially opened up the free trade of renewable energy and adopted gradually opened up the free competition of the electricity industry. However, due to the natural monopoly characteristic of the transmission and distribution system, the transmission and distribution industry is positioned as a 'public carrier' and adopted the operation mode of publicly-owned monopoly. The electricity market is transformed from a vertically integrated to a horizontally divided free-competitive model. The electricity industry structure will present a situation where the competition department and the exclusive department coexist. For the electricity industry regulatory authority, it is necessary to rethink its the scope and manner of control. In addition, the Electricity Act amendment also empower the central competent authority to hold a professional and just electricity reliability review meeting to handle the monitoring and management of power dispatching. For this reason, the role division between the electricity industry regulatory authority and the electricity reliability commission needs to be further clarified. In order to assist the electricity industry regulatory authority to supervise the transmission and distribution industry, the main tasks of this project this year include the research of scope for monitoring the transmission and distribution industry, and the drafting of the division procedure and operation mode between the electricity industry regulatory authority and electricity reliability commission.
In the other hand, in order to ensure the power supply stability and system safety, the Article 27 of the Electricity Act stipulates that the electricity generating and retailing enterprises in selling the electric energy to users shall prepare the appropriate level of electricity reserve capacity based on its electricity sales, and duly report to the electricity industry regulatory authority. The sources of capacity are including generator sets or demand response and so on. However, when calculating the total capacity, the generator set or demand response should be calculated according to its net peaking capability. And the calculation principle of net peaking capability is drawn by the Electricity Reliability Committee and announced by the Electricity Regulatory Authority. One of the main work of this project is to assist the Electricity Reliability Committee to review the calculation principle of the net peaking capability of renewable energy generator.