context: NDRC (National Development and Reform Commission) and NEA (National Energy Administration) is working on a 1+N system to establish a national power market. The basic rules for the operation and functioning of the power market, effective from 1 July will serve as the cornerstone ('1') of the system. These rules will form the foundation for a series of normative documents, including the basic power market rules that will be formulated and revised by both the NDRC and NEA. This new framework will replace the basic rules for the management and operation of the power market from 2005.
The NEA (National Energy Administration) convened the inaugural meeting of the leading group dedicated to advancing the construction of a new power system on 25 June. The meeting aimed to further clarify NEA strategic direction, key tasks and upcoming arrangements, including
- promoting green electricity
- transforming coal power for low-carbon output
- enhancing system stability and supply security
- increasing economic efficiency in planning and management
- improving flexibility and intelligence in system operations
The group emphasised the need for technological innovation and comprehensive reforms in institutions and mechanisms to provide robust technical support and ensure reliable framework guarantees for the new power system.
The meeting was led by Zhang Jianhua 章建华 NEA director and participants included supervisory directors, power companies, industry associations, research institutions and relevant NEA departments. The meeting called for strengthened coordination, clear responsibilities and concrete measures to ensure effective implementation of tasks.
The group conveyed just days ahead that the new basic rules coming into effect. The shift from ‘management and operation’ (运营) to ‘operation and functioning’ (运行) in the name signifies that the power market is no longer a single entity dominated by the power grid. It now includes multiple entities participating and performing their respective duties, explains Peng Peng 彭澎 China New Energy Power Investment and Financing Alliance secretary-general.
This revision better reflects the involvement of all regulatory parties in the power market. The rules establish fundamental institutional guidelines for constructing a unified national power market system and offer exploratory practices to accelerate the development of an efficient, standardised, fair and fully open national unified market, explains Peng.