Core Insights - The current retail electricity market in China is facing challenges due to the high proportion of renewable energy and the need for a more sophisticated market structure, moving away from the traditional "price difference" model to a "value creation" model [1][2][6] Current State of the Electricity Retail Market - As of August this year, there are over 4,200 electricity sales companies in China, providing purchasing options for 970,000 users, indicating a diverse competitive landscape [3] - State-owned and private companies dominate the market, with those having a generation background leveraging cost advantages [3] Market Innovations and Developments - Various trading centers are innovating retail packages, introducing "menu-style" options and establishing retail trading platforms to simplify user transactions and promote standardization [4] - Regulatory frameworks such as the "Basic Rules for Electricity Market Operation" and "Management Measures for Electricity Sales Companies" have been implemented to ensure market stability and protect user interests [5] Challenges Facing the Retail Market - The traditional "price difference" model is inadequate for the current energy landscape, which requires effective aggregation and participation of distributed resources [6][9] - Information transparency and efficiency in the retail market need improvement to enhance user decision-making and reduce reliance on intermediaries [8][7] Need for Reform - The retail market requires a shift from a "price difference" focus to a "value sharing" approach, necessitating reforms in business models, pricing mechanisms, and service boundaries [12][13] - A new information transmission system is essential to activate the retail market, ensuring that both wholesale and retail market data are accessible and actionable for stakeholders [14][15] Proposed New Paradigm - The establishment of a new commercial ecosystem centered on "value sharing" is crucial, transforming the relationship between electricity sales companies and users into a collaborative partnership [16][17] - This model aims to create a win-win situation, where both parties benefit from shared risks and rewards, ultimately enhancing market vitality and supporting the transition to a new energy system [17][18]