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.
Our Goal
The think tank cooperation component of the Energy Partnership takes lead on facilitating Sino-German exchange on green electricity markets. Through scientific exchange between research institutes in China and Germany and sharing German energy transition experiences, we seek for solutions to improve electricity market design to be more conducive to renewable integration whileand providing more flexibility to the energy system.
Our partners
The Sino-German Energy Partnership leads the think tank research implementation in cooperation with the German Energy Agency (dena) and collaborates with the China Electric Power Planning and Engineering Institute (EPPEI), and China Southern Power Grid (CSG).
Our Activities
The project conducted a range of activities on electricity markets, in cooperation with German and Chinese partners:
- Facilitate direct exchange between BMWK and NEA on the working level and sharing info on electricity market design in Germany
- Events, publication of articles, joining efforts with EU stakeholders on electricity market design and policy in China and Germany
- Study on capacity planning in Germany and other European countries, with an emphasis on how to value renewable energy in capacity planning while ensuring capacity adequacy
- Report on Green Electricity Trading and Guarantess of Origins in Europe and Germany