The Poster News APP: 

At the beginning of last year, the NDRC and the NEA issued guidelines on accelerating the building of a unified national power market system. What progress has been made in the past year? What are the main focus points moving forward? Thank you. 

Liang Changxin:

Thank you for your questions. Over the past year, steady and orderly progress has been made in building the power market. The proportion of market-based electricity transactions has been further increased, and the market has been playing a more prominent role in the optimal allocation of resources. First, a multi-level power market system has been improved. Provincial-level (autonomous region-level and municipal-level) market-oriented trading has been deepening, and inter-provincial and cross-regional market-oriented trading has been making steady progress. Medium and long-term inter-provincial transactions are running on a regular basis, and inter-provincial long-period spot transactions are in trial operation. In addition, the southern regional power market has carried out trial operations for coordinating power transfers. In 2022, the proportion of market-based electricity transactions reached 60% of the total power consumption. Second, the market-oriented power trading mechanism has been improved. Medium and long-term and ancillary services markets have achieved full coverage. Six pilot areas for spot transactions, including Shanxi, have entered a long-periodic uninterrupted power settlement pilot operation. Over 600,000 business entities have registered in power trading institutions, and coal power, gas power, nuclear power, and renewable energy power generation systems now participate in the market in an orderly manner. The market mechanism has played an important role in optimizing the allocation of resources, promoting the capacity of absorbing renewable energy power, and ensuring power supply.

In the next step, we will speed up building a unified national power market system so as to adapt to the new energy system and accelerate the building of the new power system. First, we need to improve the multi-level unified power market system, steadily promote the construction of provincial-level (autonomous region-level and municipal-level) and regional power markets, let the inter-provincial and cross-regional transactions be more market-based, and enhance the link between the markets. Second, we should synergize different types of power trading, continue to improve the medium and long-term market and ancillary service market, and actively yet prudently promote the construction of the spot market. Third, we need to help diversify business entities and improve the relevant mechanisms for new energy and new business entities to participate in the power market. Thanks.