National Development and Reform Commission and National Energy Administration, Circular on Actively Promoting Market-based Trading in Electric Power and Further Improving the Trading Mechanism

国家发展改革委、国家能源局关于积极推进电力市场化交易 进一步完善交易机制的通知

August 21, 2018 | BY

Susan Mok

Four industries will be opened for power deregulation

Clp Reference: 4310/18.07.16 Promulgated: 2018-07-16

Issued: July 16 2018

Main contents: In terms of power generation, the deregulation of coal-based power will be accelerated, the participation in trading by hydropower, wind power, solar power, nuclear power and distributed power generation will be promoted in an orderly fashion, and the participation in trading by coal-fired captive power plants will be promoted in a compliant manner (Articles 1 and 2).

In terms of users, all qualified 10 kV and above wattage class of users will be deregulated and the deregulation of users that consume more than five million kWh per year is supported. The entry into the market by industry and commerce entities, emerging industries, industrial parks, public service industries and other such users that consume a vast quantity of power, as well as the full application of the power generator-user plan for users in the four industries of coal, iron and steel, nonferrous metals and construction materials in 2018 are actively supported (Article 3).

When a user and power generator execute a contract, they will conduct negotiations at their own initiative, and provide for the establishment of a “reference power price + float mechanism” to generate a market-based pricing mechanism (Article 7).

clp reference:4310/18.07.16 issued:2018-07-16

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