The priority of the current power sector reform in China is the establishment and enhancement of competitive electricity markets to economize electricity prices and incentivize renewable energy supply and demand. 20 months into its inception, the current round of power sector reform is clearly picking up pace, and fast: by now, about 20 Chinese provinces and municipalities have already established their own market pilots with different layouts and ambitions, along with a new series of national and local reform directives. Against this backdrop, on October 25th, 2016, NRDC convened the 8th Power Sector Roundtable jointly with China State Council Development Research Commission specifically on electricity market design.

U.S. and Chinese experts, three on each side, had an in-depth exchange in this closed-door roundtable session with regard to market design issues, renewable energy and demand-side resources integration. The consensus is that prudence is of critical importance in moving the market reform process forward given its complexity. Inter-regional planning, harnessing grid resource flexibility and ancillary services mechanisms are all helpful in invigorating renewable and demand side resources integration onto the grid. The optimism of Chinese experts on electricity spot markets are worthy of note.

Click here to the conference files.