China Launched Pilot Direct Trading of Green Power

In a move to further boost renewable energy development, China launched pilot direct trading of green power between corporate consumers and renewable energy generators on September 7, according to the National Development and Reform Commission.

The launch of the pilot aims to tap the potential of market mechanisms in enhancing the cost efficiency of the low-carbon transition in the country’s power system.

The pilot will allow enterprises willing to shoulder more social responsibilities to directly trade with renewable energy generators. The earnings from the trading are expected to be invested into new energy development and will enhance the power system’s capacity to absorb renewable energy.

The pilot will begin with wind and solar power and may be extended to hydropower and other renewable energies in the near future.

The commission said green power that is not subsidized by the government will be given priority in the trading. Subsidized green electricity or renewable power purchased by the government can also enter the market if no sufficient unsubsidized green power is available in pilot regions.

To achieve the carbon peak and carbon neutrality goals, China has proposed to accelerate the construction of a new type of power system dominated by new energy. By 2030, non-fossil energy will account for about 25 percent of primary energy consumption, and the total installed capacity of wind and solar power is expected to reach over 1.2 billion kilowatts.