China has issued a new declaration to accelerate the integration of new energy sources into the country’s electricity market. The move aims to promote sustainable economic growth and accelerate the country’s green, low-carbon transformation.
The statement, issued jointly by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA), emphasized the need to promote the full integration of wind and solar energy, which are already connected to the State Grid, into the electricity market. It also called for deepening market-oriented price reforms to ensure that electricity prices are set through competitive market mechanisms. The declaration called for the establishment of a price settlement mechanism to ensure the sustainable development of new energy projects. Different policies were proposed for existing and new projects. For existing projects, the volume of electricity under the mechanism and the pricing framework will be in line with existing policies.
For new projects, the volume of electricity under the mechanism will be determined by local authorities in accordance with national guidelines, and prices will be determined by competitive bidding on the market. In 2024, China’s total electricity consumption amounted to 9.8521 trillion kilowatt-hours, up 6.8% year-on-year. During the same period, the country’s total installed power generation capacity reached 3.35 billion kilowatts, up 14.6% year-on-year. Solar power generation capacity was about 890 million kilowatt-hours, up 45.2% year-on-year, while wind power capacity was about 520 million kilowatt-hours, up 18%. These developments are part of China’s efforts to promote a green and low-carbon transformation in the energy sector. Accelerating the integration of new energy sources into the electricity market is seen as an important step that will contribute to the country’s sustainable economic growth.
