China’s power market reforms have been evolving for 20 years. The core aim of the reforms has been to introduce more competition along the power sector value chain to diversify investments and optimize the overall operation. Beginning in 2002, power generation was separated from grid utilities who oversaw transmission, distribution, and retail. In 2015, the “current round of reforms” was introduced to bring competition to the electricity energy market and the distribution and retail market. However, unique challenges add complexity in communicating China’s power system and market reforms to an international audience:
- China-specific rules that deviate from international common practices.
- China’s policies vary across different municipal levels and are at various stages of implementation.
- Cultural and contextual nuances that are difficult to convey accurately in translation.
This report analyzes the power market’s components, including the electricity energy market, ancillary services market, capacity market, and transmission and distribution pricing. RMI will examine recent market developments and provide an outlook on power marketization in the next one to three years.
Access the report here
