Core Viewpoint - The establishment of a normalized cross-grid electricity trading mechanism aims to enhance electricity supply security during peak summer periods and facilitate long-term green electricity trading agreements across different grid operating areas [1][2][3]. Group 1: Reasons for Establishment - The current separation between the State Grid and Southern Grid has become a critical bottleneck in building a unified national electricity market [3]. - The lack of a normalized trading mechanism between the two grids has limited the efficiency of inter-grid electricity exchanges, which primarily rely on government agreements and emergency dispatch [3][4]. - The increasing integration of renewable energy sources necessitates a more flexible and efficient electricity trading system to ensure stable supply and consumption across regions [3][5]. Group 2: Mechanism Details - The approved plan includes detailed processes for various trading types, ensuring safety checks, execution, settlement, and information disclosure for cross-grid transactions [4]. - A dual verification system is established for all cross-grid transactions to ensure the safety and reliability of the electricity grid [4][7]. - The plan promotes real-time sharing of transaction data, enhancing the convenience for market participants and reducing transaction costs [4][6]. Group 3: Innovations and Market Impact - The plan introduces a direct trading model between resource providers and consumers, allowing renewable energy projects to participate in cross-grid trading [6]. - It aims to expand the market for green electricity, facilitating the transfer of clean energy from resource-rich areas to consumption centers [6][5]. - The establishment of a collaborative mechanism between the two grids is essential for the smooth operation of the trading system, ensuring unified processes and safety standards [7][8].

Core Viewpoint - The article discusses the significant breakthrough in China's electricity market with the approval of the "Cross-Grid Operating Area Normalized Electricity Trading Mechanism Plan," which allows for the seamless flow of electricity resources across the national grid, marking a step towards a unified national electricity market [1][3]. Group 1: Market Structure and Historical Context - Historically, China's electricity market has been divided between the State Grid and the Southern Grid, with the State Grid covering 26 provinces and accounting for over 88% of the land area, while the Southern Grid operates in five provinces [3]. - This regional division has led to market isolation, preventing efficient electricity transfer between regions, especially during peak demand or surplus generation periods [3][4]. Group 2: Mechanism Implementation and Transactions - The first transaction under the new mechanism involved 2 million kilowatts of electricity flowing from the Southern Grid to the Eastern region, showcasing the mechanism's role in optimizing national electricity resource allocation [1]. - In March, a successful cross-regional green electricity transaction was conducted, marking a significant milestone in the establishment of a normalized trading mechanism [4]. - In June, over 34 million kilowatt-hours of renewable energy were traded across multiple channels, demonstrating the mechanism's ability to enhance market competition and resource efficiency [5]. Group 3: Future Goals and Framework - The plan outlines a phased approach to building a unified electricity market, focusing on foundational improvements, expanding participation, and ultimately achieving rule unification and comprehensive integration [6][7]. - The "Take the Smaller Principle" is a key innovation in ensuring safety and efficiency in transactions, allowing for better coordination between the two grid operators [8]. Group 4: Economic and Environmental Impact - The implementation of this mechanism is expected to significantly enhance market vitality and expand market space, allowing for efficient resource flow and optimization across the country [10]. - It aims to improve the consumption of clean energy by creating stable channels for renewable resources from regions like Southwest China to major consumption areas [10][11]. - The establishment of long-term green electricity purchase agreements is anticipated to stabilize market expectations and drive efficient resource conversion into economic advantages [11][12].

Core Viewpoint - The establishment of a normalized electricity trading mechanism across different grid operation areas marks a significant step towards building a unified national electricity market in China, facilitating the efficient flow and optimization of electricity resources nationwide [1][5][10]. Group 1: Market Structure and Changes - The electricity market in China has historically been divided between the State Grid and the Southern Grid, which has led to market isolation despite physical connections [2][3]. - The new trading mechanism allows for the seamless flow of electricity resources across these two major grids, overcoming previous market segmentation and enhancing the utilization of transmission channels [2][5]. Group 2: Implementation and Mechanism - The plan outlines a phased approach to establish a cross-grid trading mechanism, starting with foundational work and gradually expanding to a fully integrated system [5][6]. - Key features of the mechanism include differentiated trading rules for various scenarios, ensuring efficient resource allocation while maintaining operational flexibility [6][7]. Group 3: Economic and Environmental Impact - The normalized trading mechanism is expected to significantly enhance market vitality and expand market space, allowing diverse power generation resources to flow efficiently across the country [8][9]. - It aims to improve the consumption of clean energy by creating stable and efficient channels for hydropower and wind resources to reach high-demand areas, addressing issues of resource wastage [8][9]. Group 4: Future Developments - The government plans to construct more cross-grid transmission channels to further enhance the interconnectivity and mutual support of electricity resources, promoting the large-scale development of renewable energy [10]. - The mechanism is seen as a crucial step towards achieving a clean, low-carbon, and efficient modern energy system, reshaping the green landscape of China's economy [10].

Core Viewpoint - The National Development and Reform Commission and the National Energy Administration have issued a response regarding the normalization of electricity trading mechanisms across power grid operating areas, granting principle approval to the "Normalization Electricity Trading Mechanism Plan Across Power Grid Operating Areas" [1] Group 1 - The response indicates a significant step towards enhancing the efficiency and flexibility of electricity trading in China [1] - The approval of the plan is expected to facilitate better resource allocation and improve the overall stability of the power supply [1] - This initiative aligns with the broader goals of energy reform and market-oriented development in the electricity sector [1]