Thread by @YanQinyq

👇Power trading in China

🇨🇳energy regulator announced 5 new Spot trading pilots, adding to previous 8 pilots since 2017.

In 2020, 8 pilots have all tested full-month continuous settlement, and will start with longer period trial spot trading this year.

NDRC announced the expansion of spot trading pilots at spot market weekly work meeting on 9 March.

In addition to 5 new pilots, it also aim to build regional power markets in Beijing-Tianjin-Hebei and Southern (led by Guangdong).

shoudian.bjx.com.cn/html/20210317/…

Total generating capacity in the 13 spot trading pilots will account for more than half of China's power fleet.

=1275 GW ( incl. 800 thermal, 150 wind, 130 solar)

That said, not all types of generators are allowed in the pilot spot trading.

Medium-to-long term power trading is still dominant in China's power sector.

But the expansion of spot pilots is a positive sign, following Gansu's suspension early 2021.

I discussed earlier Guangdong's spot trading results:
linkedin.com/pulse/china-sp…

Nevertheless it remains to be seen how the 13 spot trading pilots proceed further, given the challenges seen in test trading incl. priority generation, imbalance fees, biased low spot prices,

A good summary by China Energy News:
paper.people.com.cn/zgnyb/html/202…