Trans provincial and trans regional transmission is an important means to ensure the national energy strategic security and solve the contradiction between the reverse distribution of energy resources and load centers in China. Since 2005, especially since the new round of power system reform in 2015, China has vigorously promoted the trans provincial and trans regional power trading, the rules have been constantly improved, the transmission capacity has been greatly improved, and the transaction scale has increased year by year. In 2019, the trans provincial and trans regional power transmission capacity will be 1444 billion kWh and 540.4 billion kwh, respectively, 2.3 times and 3.2 times higher than that in 2011. The establishment of trans provincial and trans regional electricity trading market promotes the optimal allocation of resources in a wider range, and plays an important role in ensuring the power supply, promoting the development of clean energy, maintaining the security of power grid and efficient utilization of resources.

1、 Progress of cross regional electricity trading in China

In order to strengthen the trans provincial and trans regional electricity trading, China adheres to the standardization, formulation of trading rules, grasping the foundation, building transmission channels, grasping the mechanism, forming the transmission price, grasping the "three public" and promoting the institutional share reform, so as to ensure the standardized development of trans provincial and trans regional electricity market-oriented transactions.

（1） The system of trans provincial and trans regional transaction rules has been constantly improved

In February 2005, the national development and Reform Commission and the Electric Power Regulatory Commission issued the guiding opinions on promoting cross regional electricity trading (fgy [2005] No. 292), which made relevant provisions on trans regional and trans provincial electricity trading. In 2015, in order to coordinate with the new round of power system reform, the relevant departments successively issued six supporting documents, including "Implementation Opinions on promoting the construction of power market", "Implementation Opinions on orderly development and utilization plan", and issued "notice on issues related to improving the formation mechanism of trans provincial and trans regional electricity trading price" (fgjg [2015] No. 962). In the following two years, the national development and Reform Commission, the State Energy Administration and other relevant departments made clear the medium and long-term transaction rules, regional power grid transmission price, trans provincial and trans regional special project transmission price pricing in the form of official documents, and established the pricing mode of regional power grid and trans provincial and trans regional special project transmission price according to "permitted cost plus permitted income".

In 2018, the detailed rules for the implementation of trans regional and trans provincial electricity trading in Beijing Electric Power Trading Center (Interim) and the rules for medium and long term electricity trading in southern regions (Interim) were issued. The trading rules system of national inter regional and inter provincial markets and mid and long-term markets within provinces were initially established, which effectively standardized and promoted the development of trans provincial power market transactions.

In January 2020, the national development and Reform Commission issued the measures for pricing transmission prices of regional power grids and the pricing measures for transmission and distribution prices of provincial power grids, which made it clear that the transmission price of regional power grid and the permitted income of transmission and distribution price of provincial power grid consist of permitted cost, permitted income and tax. Fixed assets unrelated to transmission and distribution business shall not be included in the scope of fixed assets with income. The national power grid Reform Commission issued the regulation of transmission price in the second period of 2029. In order to cope with the impact of electricity price reduction in 2020, the new transmission and distribution price will be implemented from 2021.

（2） Speeding up the construction of trans provincial and trans regional power transmission channels

In 2000, with the "west to East power transmission" project and the "Three Gorges power transmission and transformation project" entering the construction peak and the construction of UHV transmission lines started, the national interconnection was rapidly promoted. In 2011, with the sign of the commissioning of the Qinghai Tibet DC interconnection project, the national interconnection of the whole country except Taiwan was realized, and a power configuration pattern of "power transmission from the west to the East" and "north to South" was formed. In recent years, China has continued to increase the construction of trans provincial hydropower channels focusing on UHV transmission. By the end of 2019, 28 cross regional interconnection and transmission channels have been put into operation in China, and the trans regional transmission capacity has reached 146.15 million kilowatts, including 132.18 million kilowatts of trans regional network to network transmission capacity and 13.34 million kilowatts of cross regional point to network transmission capacity. Nine trans provincial UHV transmission lines with a transmission capacity of 5080 kW have been put into operation in southern, East and North China regions. The construction of UHVDC transmission channels has been increasing.

（3） Exploration and establishment of trans regional and trans provincial transmission price formation mechanism

At present, except for the North China and central China interconnection lines, most of the cross provincial and trans regional special projects in China are approved in the form of single electricity price. The electricity price is included in the landing price by the electricity users in the receiving area by the method of forward addition in the power transaction; the capacity price is borne by the power users in the benefit area according to the benefit of the interconnection project. Since 2018, the national development and Reform Commission has reduced the transmission price of trans provincial and trans regional special projects twice in a row, reducing the average transmission price by 8.9 yuan / kWh. At present, the electricity price level is between 1.54 and 8.02 Fen / kWh. The reduction of trans regional transmission and distribution price and the promotion of electricity marketization have greatly reduced the power consumption cost of consumers.

（4） The share reform of power trading institutions is gradually deepening

On February 24, 2020, the national development and Reform Commission issued the implementation opinions on promoting the independent and standardized operation of power trading institutions (fgtg [2020] No. 234), requiring that the shareholding ratio of power grid enterprises in Beijing and Guangzhou regional trading institutions and provincial (autonomous region, municipality) trading institutions should be reduced to less than 80% in the first half of 2020, and the shareholding ratio of power grid enterprises should be reduced to 50% before the end of 2020 %Below. By the first half of 2020, the capital increase agreement of Beijing Electric Power Trading Center has been signed, and ten investors have been introduced, and the equity of State Grid has been diluted to 70%. Guangzhou electric power trading center is a company system model group which shares by many units