Coordination Mechanism Analysis of Grid Planning, Investment, and Tariff in the Context of Power Market Reform

DOI

10.2991/978-94-6463-690-1_29How to use a DOI?

Keywords

Grid Planning; Grid Investment; Electricity Tariff; Power Market; Coordination Mechanism

Abstract

Since 2015, China has established a unique transmission and distribution tariff (TDT) regulatory system centered on “permitted costs + reasonable returns.” The TDTs, which were originally applied only to some market-oriented industrial and commercial users, have transitioned to being implemented by all industrial and commercial users. Against this backdrop, the business model of grid enterprises is rapidly shifting from earning purchase-sale spreads to collecting TDTs. Rationalizing the interaction mechanisms among grid planning, investment, tariffs, and the market has become crucial for promoting effective investments, stabilizing revenues, and ensuring sustainable development. In the face of unprecedented challenges and opportunities encountered in the planning, investment, and operation of power grids, multiple studies have delved into the optimized decision-making pathways for power grid planning and investment, analyzing the interconnected mechanisms between power grid investment, planning, and electricity prices. The importance of post-evaluation mechanisms for power grid investment projects has been emphasized, highlighting the positive achievements of power grid companies in promoting the application of clean energy. Some studies have provided effective tools for navigating market dynamics and uncertainties by constructing revenue forecasting models for power grid enterprises. Simultaneously, from a regulatory perspective, there are warnings that while pursuing economic benefits, it is imperative to strengthen the oversight of power grid investments to ensure the effectiveness and safety of investment activities.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Guoquan Wang
AU  - Anli Sun
AU  - Dan Zhang
AU  - Songsong Liu
PY  - 2025
DA  - 2025/04/23
TI  - Coordination Mechanism Analysis of Grid Planning, Investment, and Tariff in the Context of Power Market Reform
BT  - Proceedings of the 2024 6th International Conference on Economic Management and Model Engineering (ICEMME 2024)
PB  - Atlantis Press
SP  - 297
EP  - 312
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-690-1_29
DO  - 10.2991/978-94-6463-690-1_29
ID  - Wang2025
ER  -