Media Report | China’s provincial electricity spot markets have achieved near‑universal coverage.

According to the National Energy Administration, with the recent transition of the electricity spot markets in Sichuan, Chongqing, and Qinghai into continuous settlement trial operations, China’s provincial-level electricity spot markets have achieved near‑universal coverage, marking a key milestone in the initial establishment of a nationwide unified electricity market.

Building a nationwide unified electricity market is a key component of deepening the reform of the power sector and constructing a new type of power system. It also represents a pivotal step and a vivid example of implementing the national strategy for building a unified national market in the energy domain.

As a critical component in building a nationwide unified electricity market system, the electricity spot market represents the most challenging element of this systemic undertaking. Functioning like an “electricity stock market,” it employs real-time bidding to establish accurate, market‑based prices that reflect current supply and demand conditions, thereby facilitating the efficient allocation of power resources across the country.

Since the beginning of this year, the development of electricity spot markets has accelerated. To date, seven provincial-level spot markets—including those in Shanxi and Guangdong—have entered formal operation, while others in Fujian, Shaanxi, and other provinces have moved into a phase of continuous settlement testing, thereby achieving the goal of nearly universal provincial‑level coverage two months ahead of schedule. In June, the Southern China Power Market transitioned to continuous settlement operations, marking a breakthrough in the coordinated and mutually supportive allocation of power resources across the five southern provinces and regions. In October, State Grid Corporation of China conducted its first cross‑regional electricity spot transaction with China Southern Power Grid, realizing inter‑grid market connectivity.

The value of the electricity spot market in ensuring supply, stabilizing prices, and optimizing resource allocation was fully demonstrated during this year’s peak‑summer period. On the generation side, price signals effectively incentivized units to operate steadily at full capacity; in Shandong and Hubei, the rates of unplanned outages and forced curtailments dropped significantly when demand reached record highs. On the grid side, inter‑provincial spot trading played a critical role in mutual support, with maximum cross‑regional power transfers reaching 14.32 million kW, providing precise assistance to more than 20 provinces, including Sichuan and Chongqing. Sichuan alone purchased over 2.92 billion kWh of electricity, helping to alleviate the severe power‑supply tightness during the peak‑summer period. On the consumer side, price signals guided users to flexibly adjust their consumption patterns: in Shandong, 4.46 million industrial and commercial customers, by leveraging time‑of‑use pricing, freed up 5.83 million kW of absorption capacity for renewable energy during midday and shifted 2.25 million kW of load to the evening peak, thereby fully unlocking the demand‑side potential for supply security.

A relevant official from the National Energy Administration stated that, as the development of electricity spot markets across the country continues to advance, China’s power‑generation dispatch has essentially completed its market‑oriented transformation. With the accelerated construction of a new‑type power system, the electricity spot market will unlock greater value in enhancing system flexibility, ensuring reliable grid operation, and facilitating the integration of renewable energy, thereby providing robust energy support for high‑quality economic and social development. (Li Donghai)

(Source: China Electric Power News)