The report “2026 China Power Market Outlook: 10 Key Trends for Market Players” published by RMI outlines key trends for power market players in China:
-Provincial power spot markets now cover nearly all provinces, with spot prices emerging as the pricing anchor for medium- to long-term power and retail markets.
-Time-segmented M2L trading has become widespread, with intraday price differentials constrained by trading price limits in some regions.
-Wholesale-retail price pass-through is strengthening, and market-based TOU electricity pricing on the retail side is accelerating.
-Mechanism pricing has been implemented nationwide, with notable disparities emerging in regional implementation plans, bidding outcomes, and settlement expenses across different regions.
-Capacity pricing is expanding to include more types of generation-side entities, with compensation depending on peak-serving capability.
-Capacity-based T&D tariffs mark a policy breakthrough, while system operation fees play a growing role in the overall electricity price structure.
-Standalone energy storage economics improve as capacity pricing rolls out, while market-based TOU pricing reshapes industrial and commercial storage operations.
-Generation-type virtual power plants are becoming a key route for distributed renewables to enter power markets.
-Green power supply-demand balance remains relatively loose, while expanding application scenarios drive demand for green energy certificates.
-Vehicle-to-grid pilots continue to expand, and provinces are beginning to introduce discharge pricing mechanisms.
Access the report here