Electricity Markets

China’s power sector is currently undergoing thorough market reform. Today, 23 provinces have been piloting electricity spot markets to gain experience for the introduction of a nationwide spot market in the near future. Since 2021, Chinese energy authorities have issued several important policies to support the electricity market development. In August 2022, the Southern Power Grid Region took the lead in launching a regional electricity market, by expanding, spot trading from Guangdong Province to inter-provincial trading in the five provinces covered by China Southern Power Grid. China aims to establish a preliminary national electricity market by 2025 with a final, unified design implemented by 2030. 

One of the key factors allowing Germany to secure its electricity supply with a share of more than 50% renewables is the establishment of a mature electricity market in Germany and across Europe. In 2000, Germany’s first electricity exchange started trading in Frankfurt. Two decades later, German and European power markets are ever more integrated with numerous products, from futures to intra-day products, offered on the trading floor. Within the Sino-German Energy Partnership, German and international experts share best practices and offer advice for China’s efforts to establish effective and efficient spot trading mechanisms.