Analysis of China’s Electricity Market Under the New Round of Reform

In the context of achieving the goals of peaking carbon emissions and achieving carbon neutrality and building a national unified market, the pace of China's electricity market reform has accelerated significantly. In October 2021, the National Development and Reform Commission issued the Notice on Further Deepening the Market Reform of On-grid Coal-fired Power Prices, which requires the orderly liberalization of all on-grid coal-fired electricity prices, the expansion of the range of floating prices for market transactions, the promotion of commercial and industrial users to enter the market, and the maintenance of stable electricity prices for residents and agriculture, which marks the further acceleration of power reform. China has now promoted the construction of electricity spot market in 14 provinces in two batches, and is expected to be implemented in all provinces of the country soon, with a series of supporting policy measures launched one after another. According to the existing national policies, China will make further efforts in establishing a national unified electricity market, continuing to promote electricity market reform, gradually improving the electricity spot market, and promoting the clean and low-carbon transformation of electricity in the future.