Two stages to show you the history of China's power development is very similar to Europe

The reform and establishment of the electricity market in Europe and the United States for nearly 20 years has interpreted the nature of electricity – it is both a commodity and a public service product. It is the commodity (power generation and electricity sales) that requires markets and transactions; it is the public service products (transmission and distribution) that require government regulation.

Throughout the history of power reform in Europe and the United States and China, we can see that the East and West have achieved the same goal, and the development experience of Europe and the United States provides an important reference for China's power reform and development.

Two stages to show you the history of China's power development is very similar to Europe

The first stage: the 20th century, from luxury goods to public goods

The power industry started in 1875, and the Paris North Railway Station built the world's first thermal power plant to power nearby lighting. In the subsequent history of electricity, humans invented two key technologies:

First, the continuous evolution of large generator sets has gradually reduced the cost of power generation;

The second is the invention of the AC transformer, so that electricity can be transmitted over long distances with low loss.

These two technologies drive electricity from a luxury that only serves the aristocratic aristocracy to an engine of industrial and commercial civilization and a public service product that illuminates every family.

Specifically, with the growth of electricity consumption in large-scale industrialization in Europe and the reconstruction of the country after the two world wars, the property of electricity as a public product has been repeatedly strengthened, and the government has dominated electricity price regulation and industry investment. European power models have also diversified.

For example, Germany has a highly monopolized electricity market. The four major power companies in Italy, Baden-Württemberg Energy, Rhein Energy and Great Falls have more than 80% of the installed power in Germany. Power plants are private companies.

In early 1990, the Thatcher government introduced privatization reforms to the power industry. The United Kingdom has gradually evolved from the state's central power generation bureau to the leading market for the six major distribution vertical integrated power companies. Energy companies in other European countries, such as Germany E. ON, RWE, France EDF, GDF-Suez, etc. have controlled these companies, and foreign capital has gradually become the main force in the UK electricity market.

In 1946, the French government acquired a number of private small and medium-sized power companies and established the French Power Company (EDF), which is similar to the Ministry of Power Industry. EDF covers the development, transmission, distribution and sale of all French power, as well as the technology, planning, construction and operation of power plants and power grids. France has developed a highly centralized state-owned power system.

In the 20th century, European countries adopted different models (privatization, foreignization, nationalization, etc.) in the system to find the capital for the development of electricity. At the same time, they constantly pursued the high parameters of large units in technology and completely solved the problem of power supply in Europe. Europe finally "eats enough".

Two stages to show you the history of China's power development is very similar to Europe

Second stage: 21st century, from public goods to goods

On the basis of “satisfaction”, how to eat well is the main problem solved by European thinking in the 21st century. Can power consumption be affordable? Among them, Wumei refers to low-carbon and environmentally-friendly power generation methods and good power supply quality (power supply reliability and power quality); low price is the requirement that the overall electricity price is declining to benefit the society, and the diversity of electricity prices (guarantee, time-sharing, ladder) Etc.) Suitable for all types of users.

The interconnection between the European Union established in 1991 under the Maastricht Treaty and the European power grid in the 1990s has laid a solid foundation for the reform of electricity commodities both politically and technically.

In the EU's 1996, 2003 and 2009 power reform directives, Western Europe basically eliminated electricity price controls in 2014. From the top down, Western Europe spent nearly 20 years reforming inefficient electric public goods into efficient and environmentally friendly power products.

The results of its reforms are as follows:

Electricity as a commodity – to achieve electricity market transactions and carbon dioxide emissions trading, low-cost and low-carbon power products win.

Electricity as a public good - the government comprehensively controls the operating activities of the grid companies (over-network fees, business scope, service standards, etc.).

The history of China's power development is very similar to that in Europe.

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