Electricity Price Reform Pilot Project in Chongqing and Guangdong

Both the National Energy Administration and the National Development and Reform Committee have approved a pilot project for electricity pricing in Chongqing Municipality and Guangdong Province.

As a follow up on China’s plan for a power market reform earlier in 2015, the current note No. 3117 from end of November 2015, should guide the pilot project. Especially, lessons for future adoption in other areas and provinces should be drawn.

The three main principles of the pilot project and the yet to be designated pilot areas in Chongqing and Guangdong, are:

  1. Market pricing
  2. Fair competition
  3. Energy saving

Basically the pilot project shall allow for a more transparent and market-based direct power trading in the province of Guangdong and the Municipality of Chongqing. It should thus find a solution for system usage tariffs and thus the revenue model for China’s grid operators for power network utilization (both distribution and transmission) by different parties (BJX)

The article also appeared on the Chinese European Energy News portal of Energy Brainpool.

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