The report “Corporate Green Power Procurement and Application: China’s Market Progress and Outlook, 2024 Annual Report” by RMI summarises that in pursuit of the overarching target of accelerating the construction of the New Power System, China’s installed capacity of wind and solar power has sustained rapid growth. By the end of the third quarter of 2024, the total installed capacity of wind and solar power reached 1.25 terawatts (TW), exceeding the 2030 target ahead of schedule and surpassing the installed capacity of coal power. During the same period, wind and solar power contributed to 82% of the total newly added installed capacity and reached a record high of 19% of total electricity generation. Meanwhile, power market reforms have been advancing steadily, which has prompted corporations to improve their green power procurement strategies and actively seize opportunities. The coverage of the power spot market is progressing rapidly. The ability of spot markets to effectively discover energy prices has been further enhanced.
The power spot markets in Shanxi, Guangdong, Shandong, and Gansu were the first to enter formal operation, gradually transforming the pricing logic of green power assets. In addition, the scale of market-based transactions for renewables is continuously expanding. By 2023, 47.3% of total renewable power generation was traded through the power market. Renewable projects can participate in the intraprovincial medium- to long-term (M2L) market, intraprovincial spot market, and interprovincial power market. Green power trading follows the M2L trading framework with the addition of green premium and certificate-related agreements. These changes are influenced by pricing and procurement strategies across various green power procurement options. From 2022 to 2024, the rapid expansion of the green power market has laid solid groundwork for corporations to leverage green power and GECs to meet both domestic and international compliance requirements. In domestic and international cases, corporate green power procurement is driven by both voluntary and mandatory factors.
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