In the context of the global energy transition, China is steadily promoting the integration of the electricity market. This article will delve into the progress, challenges and future directions of China's electricity market integration, and analyze the impact of this transformation on the new energy landscape based on specific data and policy guidance.
Figure: The Blue Book of the National Unified Electricity Market Development Plan was released
1. Progress in the integration of the electricity market
The integration of China's electricity market is accelerating. According to the Annual Development Report of China's Power Industry 2024, the amount of electricity traded in the national market will reach 5,667.94 billion kWh in 2023, a year-on-year increase of 7.9%, accounting for 61.4% of the total electricity consumption of the whole society, an increase of 0.6 percentage points over 2022. This data shows the in-depth promotion of the reform of the electricity market and the steady expansion of the scale of the electricity market. In addition, a total of 743,000 market entities were registered on various power trading platforms, a year-on-year increase of 23.9%, and the pattern of multiple competitive entities was initially formed.
2. Technical details and innovation
At the technical level, the product appraisal meeting of "500kV XLPE insulated smooth aluminum sheathed power cable" organized by China Electricity Council shows that the comprehensive technical performance of the product has reached the international leading level, marking that the company has reached a new level in the field of high-voltage and ultra-high-voltage smooth aluminum-sheathed cable product research and development. This technological progress not only improves the efficiency and safety of power transmission, but also provides solid technical support for the integration of the power market.
3. Character views and policy support
Song Hongkun, member of the party group and deputy director of the National Energy Administration, stressed that the construction of a unified national electricity market is an important support for serving the smooth domestic cycle and building a new development pattern, and is the core task of deepening the reform of the power system and implementing the new strategy of energy security. Yang Kun, executive vice president of the China Electricity Council, pointed out that with the rapid increase in the proportion of new energy installations, the operation of China's power system and power market is undergoing profound changes, which puts forward higher requirements for the reform of the power system and urgently needs to strengthen the top-level design.
4. Market analysis and data examples
According to the Blue Book of the National Unified Electricity Market Development Plan, by 2025, China will initially build a unified national electricity market and realize the basic standardization of basic trading rules and technical standards across the country. By 2029, a unified national electricity market will be built in an all-round way, and the basic market system and rules will be unified, market supervision will be fair and unified, and market facilities will be connected to high standards. This plan not only clarifies the timetable, but also provides a clear roadmap for the integration of the electricity market.
5. The impact of electricity market integration
The integration of the electricity market will have a profound impact on China's new energy landscape. First, it will promote the optimal allocation of resources on a larger scale and improve the efficiency and reliability of the power system. Second, it will provide a more solid market foundation for the development of new energy and promote the transformation of the energy structure. For example, in 2023, the market-based trading of wind power and photovoltaic power will account for 47% of the total power generation of wind power and photovoltaic power, which has effectively promoted the optimal allocation of power resources and the efficient use of renewable energy.
6. Conclusions and prospects
The construction of a unified national electricity market is not only a deepening of the reform of the power system, but also an important part of the transformation of the energy structure. With the continuous advancement of technology and the gradual improvement of policies, it is expected that by 2029, China will build a more mature and efficient national unified electricity market, providing strong support for achieving the goals of carbon peak and carbon neutrality. This process will not only reshape China's energy landscape, but will also have a significant impact on the global energy market.
From the above analysis, we can see that the process of integration of China's electricity market is progressing steadily, and it is expected that the goal of a unified national electricity market will be achieved by 2029. This change will provide new impetus and direction for the energy transition in China and the world.
