Renewable energy integration remains a critical challenge due to a combination of factors including the slow growth of electricity consumption, a lag in the flexibility of retrofitting thermal power, the large proportion of heating units and captive power plants, and the need to improve coordination mechanisms between renewable and traditional energy stakeholders. To further integrate renewable energy and improve the flexibility of the power grid, NRDC worked with Xi’an Jiaotong University (XJTU) to carry out a research project with the purpose of constructing a regional ancillary services market in Northwest China, so as to ensure the safe and stable operation of the power system while decarbonizing the power grid. The report came out on July 17 and suggested that priority should be given to the construction of the regional ancillary service market covering all five provinces (and autonomous regions) in Northwest China. The regional market has a better capacity than individual provincial markets to help manage increased variability and uncertainty with more renewable energy integrated into the grid.  The report received attention and applause from the Northwest Energy Regulatory Bureau and the Northwest Power Grid.