National Grid(US:NGG) Ren Min Ri Bao Hai Wai Ban·2025-07-13 22:20Core Viewpoint - The establishment of a normalized electricity trading mechanism across grid operating areas is a significant step towards building a unified national electricity market in China, which will enhance resource allocation and break market segmentation [1][4]. Group 1: Electricity Market Development - The electricity market in China has transitioned from a planned system to a market-oriented one, with market transactions expected to exceed 6 trillion kilowatt-hours in 2024, accounting for 63% of total electricity consumption [2]. - The current electricity market structure has been shaped by ten years of reform, leading to a multi-layered and multi-functional market system [2]. Group 2: Cross-Grid Trading Mechanism - The new trading mechanism aims to unify market rules, trading varieties, and trading timing between the State Grid Corporation and the Southern Power Grid by the end of this year, facilitating normalized cross-grid trading [1][4]. - The mechanism will create a "national online electricity mall," allowing trading entities to operate across grid areas under a unified set of rules, thus enabling free flow of electricity resources nationwide [5][6]. Group 3: Support for Electricity Supply - The cross-grid trading mechanism is crucial for ensuring stable electricity supply, especially during peak demand periods in summer, as it enhances the ability to match supply and demand effectively [7]. - The plan includes short-term, medium-term, and long-term goals for cross-grid trading, with immediate actions to establish regular trading cycles and support green electricity transactions in key regions [7].