Core Viewpoint - The establishment of a normalized electricity trading mechanism across grid operating areas is a significant step towards building a unified national electricity market, which will enhance resource allocation and break market segmentation [1][2]. Group 1: Mechanism Implementation - The National Development and Reform Commission and the National Energy Administration have mandated that the State Grid Corporation and the Southern Power Grid Company unify market rules, trading varieties, and trading timing by the end of this year [1]. - The previous lack of a normalized trading mechanism between the two grids limited the utilization of inter-grid channels and the effectiveness of mutual assistance [1]. Group 2: Market Dynamics - The new mechanism is likened to a nationwide "online electricity mall," facilitating smooth resource flow between the State Grid and Southern Grid under unified trading rules, thereby enhancing market competition and resource efficiency [2]. - A significant cross-operating area market-based electricity transaction occurred, where over 20 billion kilowatt-hours of electricity from Guangdong, Guangxi, and Yunnan were transmitted to Shanghai, Zhejiang, Anhui, and Fujian to support local summer electricity supply [2]. Group 3: Future Goals - The plan outlines short-term, medium-term, and long-term goals for cross-grid trading, aiming for normalized trading cycles this year, including annual, monthly, and spot trading [2]. - The focus will also be on organizing multi-directional green electricity transactions to meet the demand in key regions such as the Yangtze River Delta and the Greater Bay Area, while exploring long-term green electricity trading agreements [2]. Group 4: Technical Enhancements - Continuous improvement of cross-grid trading rules and strengthening of technical platform interconnectivity and information sharing are essential for achieving "one registration, nationwide sharing" for market participants [3].

Core Viewpoint - The introduction of a normalized electricity trading mechanism across grid operating areas marks a significant step towards establishing a unified national electricity market in China, which is crucial for breaking market segmentation and optimizing electricity resource allocation nationwide [1][2]. Group 1: Mechanism Overview - The National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have issued a response outlining the plan for a normalized electricity trading mechanism, requiring State Grid Corporation and China Southern Power Grid to unify market rules and trading varieties by the end of this year [1]. - The previous lack of a normalized trading mechanism between the two grids limited the utilization of inter-grid channels and the effectiveness of mutual assistance, relying mainly on government agreements and emergency dispatch [1]. Group 2: Market Integration and Benefits - The new mechanism is likened to a nationwide "online electricity mall," facilitating smooth resource flow between State Grid and Southern Grid under unified trading rules, enhancing market competition, and improving resource utilization efficiency [2]. - A significant cross-regional market-oriented electricity transaction was organized, where over 20 billion kilowatt-hours of electricity from Guangdong, Guangxi, and Yunnan will be delivered to Shanghai, Zhejiang, Anhui, and Fujian to support local summer electricity supply [2]. Group 3: Future Goals and Developments - The plan outlines short-term, medium-term, and long-term goals for cross-grid trading, aiming to establish normalized trading cycles this year, which will support electricity supply during peak summer demand and facilitate green electricity transactions in key regions [2]. - Continuous improvement of cross-grid trading rules and the establishment of a shared registration system for market participants are emphasized to enhance interconnectivity and information sharing [2].

Core Viewpoint - The National Development and Reform Commission and the National Energy Administration have accelerated the establishment of a nationwide unified electricity market by issuing a response to the mechanism for normalized electricity trading across grid operating areas, aiming for completion by 2025 [1] Group 1: Market Structure and Mechanism - The new mechanism will break down institutional barriers between the State Grid and Southern Grid, facilitating the optimization of electricity resource allocation nationwide [3] - The establishment of important "electricity highways" between the State Grid and Southern Grid has enabled physical interconnection, while the new trading mechanism will provide a "soft connection" for electricity trading [5] Group 2: Demand and Supply Dynamics - There is a strong demand for green electricity, particularly in regions like the Greater Bay Area and the Yangtze River Delta, where companies seek to reduce carbon content in their products [5] - The new trading mechanism is likened to a nationwide "online electricity mall," allowing for smooth flow of electricity resources under unified trading rules [7] Group 3: Market Benefits - The mechanism will enhance market vitality, provide more choices for enterprises, and ensure more economical and stable electricity consumption, akin to opening a highway for electricity [9]

Core Viewpoint - The approval of the "Cross-Grid Normalized Electricity Trading Mechanism" marks a significant step towards establishing a unified national electricity market in China, facilitating the optimization of electricity resource allocation across regions [1][2]. Group 1: Mechanism Overview - The approved mechanism includes detailed designs for various trading types, covering transaction organization, safety checks, execution, settlement, green certificate transfer, and information disclosure [3]. - It establishes safety check and execution principles for cross-grid transactions, requiring dual verification from both grids to ensure safe and reliable operations [3]. - The mechanism promotes real-time sharing and mutual recognition of transaction data across platforms, enhancing participation convenience and reducing transaction costs [3]. Group 2: Market Impact - The establishment of this mechanism is expected to enhance electricity resource allocation efficiency, increase market vitality, provide more choices for enterprises, and ensure more economical and stable electricity supply [3]. - It aims to facilitate the green and low-carbon energy transition by enabling the flow of clean energy from resource-rich areas to consumption centers, contributing to a cleaner environment [3]. - The physical connection between the State Grid and Southern Grid is anticipated to strengthen, further enhancing the role of a unified national electricity market [3]. Group 3: Future Directions - The National Development and Reform Commission and the National Energy Administration will continue to strengthen guidance on normalized cross-grid trading, improve supporting policies, and address issues promptly to enhance the national unified electricity market system [4].

Core Viewpoint - The release of the "Cross-Grid Operating Area Normalized Electricity Trading Mechanism Plan" is a significant step towards breaking the segmentation of the electricity market and optimizing resource allocation nationwide, aiming for the establishment of a unified national electricity market by 2025 [1][8]. Group 1: Electricity Supply and Demand - During the peak summer period, Guangdong is expected to experience a maximum load of 167 million kilowatts, a year-on-year increase of 6.6%, with a system electricity consumption of 2,920 billion kilowatt-hours, up 7.9% year-on-year [2]. - The plan allows for inter-provincial resource sharing, which is expected to balance electricity supply and demand in Guangdong [2]. Group 2: Market Integration and Efficiency - The plan aims to establish a normalized electricity trading mechanism across grid operating areas, promoting market interconnectivity, reducing transaction costs, and enhancing the efficiency of electricity resource allocation [2][3]. - The mechanism will enable the sharing of surplus clean energy and load adjustment capabilities across a broader range, beyond the individual operating areas of the State Grid and Southern Grid [3]. Group 3: Green Electricity Trading - Green electricity trading is a key component of the plan, with clear regulations on entry conditions, trading methods, and green certificate transfer rules [5][7]. - Currently, one-third of the electricity generated in the country is green electricity, which includes renewable sources such as wind and solar power [6]. Group 4: Impact on Industry and Foreign Investment - There is a strong demand for green electricity from foreign enterprises in the Pearl River Delta and Yangtze River Delta regions, driven by the need to enhance their green development image and comply with international carbon reduction policies [7]. - The plan is expected to facilitate the green transformation of the manufacturing industry and enhance the competitive advantage of foreign enterprises in exports [7]. Group 5: Future Outlook - The establishment of a unified national electricity market is projected to be initially completed by 2025, with the plan serving as a crucial institutional breakthrough for promoting the smooth flow of electricity resources across a larger area [8][9]. - The plan introduces a collaborative trading model involving multiple parties, ensuring the technical feasibility of transactions under the constraints of the electricity grid [8].

Core Viewpoint - The establishment of a normalized electricity trading mechanism across grid operation areas marks a significant step towards building a unified national electricity market in China [1][3]. Group 1: Mechanism Establishment - The National Development and Reform Commission and the National Energy Administration have officially established a normalized electricity trading mechanism between the State Grid and the Southern Grid [1]. - This mechanism allows for high-standard "soft connectivity" in the market, enabling market participants to register in one location and share resources nationwide [1][3]. Group 2: Trading Framework - The trading mechanism includes various types of transactions such as medium to long-term electricity trading, green electricity trading, and spot trading, organized by multiple electricity trading centers [3]. - The mechanism has already facilitated significant green electricity transactions, with over 87 million kilowatt-hours traded across regions, effectively meeting the green electricity consumption needs of key areas [3]. Group 3: Future Developments - The State Grid and Southern Grid plan to normalize trading cycles and expand transaction scales based on the established mechanism, with a goal to explore inter-provincial transmission rights trading [4]. - The aim is to achieve a preliminary establishment of a unified national electricity market by 2025, marking a milestone in China's electricity system reform over the past decade [4].

Core Viewpoint - The implementation of a normalized electricity trading mechanism across power grid operating areas is a significant step towards establishing a unified national electricity market, promoting resource optimization and interconnectivity [3][4]. Group 1: Implementation and Significance - The normalized electricity trading mechanism is approved and should be organized for implementation by the State Grid Corporation and China Southern Power Grid [2][3]. - This mechanism is a key measure to break market segmentation and regional blockades, optimizing electricity resource allocation nationwide [3]. - The collaboration between the State Grid Corporation and China Southern Power Grid is essential to enhance the efficiency of inter-grid channel utilization and ensure the effective operation of the unified electricity market system [3]. Group 2: Operational Guidelines - During the peak summer period of 2025, the mechanism should be utilized to optimize electricity resource allocation and support supply security [3]. - By the end of the year, efforts should be made to unify market rules, trading varieties, and trading timing to achieve normalized trading across grids [3]. - The companies are required to fulfill their responsibilities, improve trading rules, and enhance technical platform interconnectivity and information sharing [3]. Group 3: Regulatory Support - The National Development and Reform Commission and the National Energy Administration will continue to strengthen guidance on normalized trading and improve supporting policies [4]. - There will be a focus on timely coordination to resolve issues and further enhance the national unified electricity market system [4].

Core Viewpoint - The establishment of a unified electricity market in China is progressing steadily, with significant developments in provincial electricity spot markets and the integration of renewable energy into market transactions [1][2][3]. Group 1: Market Development - From January to May 2023, the national market-oriented electricity transaction volume reached 2.45 trillion kilowatt-hours, a year-on-year increase of 5.7%, accounting for 61.8% of the total electricity consumption [1]. - By 2024, four provincial-level spot markets will officially operate, and the southern regional electricity market will complete its first full-month settlement trial [1]. - By October 2024, inter-provincial electricity spot markets will officially operate, covering over 6,000 participants and facilitating transactions exceeding 88 billion kilowatt-hours, with 44% of the volume being clean energy [1][2]. Group 2: Policy and Regulatory Framework - The National Development and Reform Commission and the National Energy Administration have issued a notice to accelerate the construction of electricity spot markets, with six provincial-level markets expected to operate officially by mid-2025 [2]. - A foundational regulatory framework for the national unified electricity market has been established, consisting of basic operational rules and supporting regulations for market registration, measurement, settlement, and information disclosure [2]. Group 3: Renewable Energy Integration - The pace of renewable energy participation in market transactions has accelerated, with new policies promoting the entry of renewable energy into the electricity market and establishing sustainable pricing mechanisms [2]. - As of now, provincial-level detailed rules for renewable energy pricing have been issued in Inner Mongolia and Xinjiang, with Shandong and Guangdong also in the process of consultation [3]. Group 4: Talent Development - The development of a skilled workforce for electricity trading is advancing, with the publication of the first national vocational skill recognition textbook for electricity traders [3]. - A unified national examination for electricity trading professionals was conducted in May 2023, marking a new phase in professional certification for electricity trading talent [3].

Group 1 - The core viewpoint of the report indicates that the overall power supply and demand situation in China is expected to be balanced by 2025, considering factors such as electricity consumption growth and power generation capacity [1] - The electricity elasticity coefficient in China has remained around 1.2 since the 14th Five-Year Plan, indicating a strong relationship with industrial structure transformation and energy transition [1] - The digital economy, represented by sectors like the internet and big data, is a significant driver of growth in the tertiary industry, leading to a rigid increase in electricity demand [1] Group 2 - In the first five months of this year, China's total electricity consumption reached 39,665 billion kilowatt-hours, reflecting a year-on-year growth of 3.4% [2] - The electricity consumption in the secondary industry during the same period was 25,914 billion kilowatt-hours, with a year-on-year increase of 2.2%, showcasing the resilience of the economy [2] - The report forecasts a year-on-year growth of 5% to 6% in total electricity consumption by 2025, considering the current economic growth potential and macroeconomic policies [2]

Group 1: Economic Growth and Electricity Consumption - The growth in electricity consumption this year reflects the resilience and vitality of the national economy, indicating stable economic operations despite pressures [1][2] - From January to May, the total electricity consumption reached 3.97 trillion kWh, with a year-on-year growth of 3.4%, and monthly growth rates exceeding 4% in recent months [1][2] - The report forecasts a 5% to 6% year-on-year increase in national electricity consumption by 2025, with an overall balance in supply and demand expected [1][2] Group 2: Sectoral Electricity Consumption - In the first five months, the primary industry consumed 54.3 billion kWh, showing a significant year-on-year increase of 9.6%, driven by improvements in agricultural infrastructure [2] - The secondary industry consumed 2.59 trillion kWh, with a year-on-year growth of 2.2%, while high-tech and equipment manufacturing sectors saw a growth of 3.3% [2] - The tertiary industry consumed 740.6 billion kWh, with a notable year-on-year increase of 6.8%, particularly in the information technology and digital economy sectors [2] Group 3: Electricity Market Development - The national unified electricity market is expected to be preliminarily established by 2025, with significant progress in market construction and resource allocation [4][5] - From January to May, market-based electricity transactions reached 2.45 trillion kWh, accounting for 61.8% of total electricity consumption, with expectations to exceed 6 trillion kWh for the year [4] - The construction of provincial electricity spot markets and cross-regional trading has accelerated, enhancing the overall market framework [4][5] Group 4: Capacity Pricing Policy - The capacity pricing policy for coal-fired power plants has been implemented since 2024, providing stable revenue sources and encouraging investment in efficient coal power generation [6][7] - The average fixed cost recovery for coal power plants is estimated at 92 yuan per kW per year, with a total capacity electricity fee of 95 billion yuan expected in 2024 [6] - Recommendations for optimizing the capacity pricing policy include adjusting cost recovery ratios and clarifying fee-sharing mechanisms for cross-regional electricity transmission [6][7]