电改系列：辅助服务基本规则发布，电力市场补齐重要短板

Investment Rating - The industry investment rating is "Buy" [1] Core Viewpoints - The recent release of the "Basic Rules for the Power Auxiliary Service Market" by the National Energy Administration addresses a critical gap in the electricity market, which is essential for the development of renewable energy [1] - The document is expected to be officially published by the end of the year, following a 30-day public consultation period [1] - The auxiliary service market is crucial for the coordination of energy markets, including energy quantity markets and capacity markets, to support the growth of renewable energy [1] Summary by Relevant Sections Event - The National Energy Administration has solicited opinions on the "Basic Rules for the Power Auxiliary Service Market," with a consultation period of 30 days, and a formal document is anticipated by the end of the year [1] Significance - The document fills a key gap in the electricity market construction, which is necessary for the development of renewable energy [1] - It aligns with the earlier notification from the National Development and Reform Commission and the National Energy Administration regarding the establishment of a pricing mechanism for auxiliary services [1] Highlights of the Document - The document emphasizes the inclusion of new participants such as energy storage and virtual power plants in the auxiliary service market, allowing them to share costs based on their contributions [1] - It maintains the classification of auxiliary services into three categories: active control services, reactive control services, and accident handling services [1] - A pricing mechanism will be established that considers the operational capabilities of market participants and user affordability, potentially increasing the total auxiliary service fees [1] - In the first half of 2023, the total auxiliary service fees in the country amounted to 27.8 billion CNY, accounting for only 1.9% of the grid electricity price, indicating significant room for growth [1] Investment Recommendations - On the generation side, traditional thermal and hydropower auxiliary service revenues are expected to increase, and new entities like independent shared storage are also likely to benefit. Companies to watch include Sungrow Power Supply, Shuneng Electric, and Shenghong Co., Ltd. [1] - On the user side, the transmission of auxiliary service fees to end-users is expected to enhance electricity management demand, and new flexible resources like virtual power plants are anticipated to gradually participate in the auxiliary service market. Companies to focus on include Fuling Power, Southern Power Grid Energy, Guoneng Rixin, Anke Rui, and Teradyne [1]