On December 10, China's National Energy Administration (NEA) responded to a proposal from the 14th National People's Congress, highlighting recent advancements in refining the rules of the electricity market.
From NEA
On December 10, China's National Energy Administration (NEA) responded to a proposal from the 14th National People's Congress, highlighting recent advancements in refining the rules of the electricity market.
1. The National Development and Reform Commission (NDRC) and the NEA have issued key guidelines, including long-term electricity trading rules, auxiliary services management, trial electricity spot market rules, and basic electricity market operation rules. These guidelines establish the roles of various power sources, including distributed solar PV, in the market.
2. In 2022, the NDRC and the NEA released guidelines on accelerating a unified national electricity market. These guidelines encourage new market entities like distributed energy to participate in trading, establish a distributed generation market mechanism, and promote direct transactions between distributed solar PV producers and local users.
3. In 2023, a notice was issued to further accelerate the construction of the electricity spot market, advocating the inclusion of power generated by distributed renewable energy into the market and exploring effective participation mechanisms.
4. Also in 2023, the NDRC, Ministry of Finance, and NEA issued a notice to fully implement green electricity certificate coverage for renewable energy projects, ensuring that all electricity generated by distributed solar PV is certified and can participate in the green power trading market.
Currently, studies are underway to integrate renewable energy and new entities, such as virtual power plants and load aggregators, into the power market. The goal is to continuously improve market mechanisms. The next steps will focus on leveraging market dynamics, distinguishing between existing and new capacities, and between residential and commercial projects, to develop mechanisms for distributed solar PV's participation in the power market, fostering its orderly and healthy development.