Core Insights - Sichuan Province officially launched the continuous settlement trial operation of the electricity spot market on November 1, ahead of the national requirement to accelerate the construction of the electricity spot market [1] - The trial involved 421 market participants, including 229 hydropower companies, 24 thermal power companies, 158 renewable energy companies, and 10 independent energy storage companies, with a total market clearing volume of 695 million kilowatt-hours [1] Group 1: Market Development - Sichuan has adopted a new model for the electricity spot market that emphasizes multi-source participation and full optimization of electricity consumption, which has been accelerated since its proposal last November [2] - The government introduced a coal-electricity authorized contract pricing mechanism to address the challenges of integrating hydropower and thermal power [2] - A working group was formed in February, consisting of government departments, expert teams, grid companies, and market participants, to research key mechanisms for the hydropower-dominated spot market [2] Group 2: Technical Infrastructure - The complexity of Sichuan's power grid, with over 20,000 kilometers of 500 kV AC lines and more than 700 control devices, poses significant challenges for the technical support system of the spot market [3] - Sichuan Electric Power has developed a technical support system that includes multi-basin hydropower coupling and intelligent interaction, enabling rapid modeling and solving of large-scale, multi-constraint problems [3] Group 3: Risk Management and Services - Prior to the trial operation, Sichuan Electric Power conducted extensive training sessions for over 5,000 participants to familiarize them with market rules and technical systems [4] - The company has implemented proactive risk management strategies to address potential market price volatility during periods of significant supply and demand changes [4] - Continuous market simulations and trial operations were conducted to test the system under various complex scenarios, ensuring smooth market operation [4] Group 4: Future Outlook - The successful launch of the continuous settlement trial is expected to enhance price signal guidance in Sichuan's electricity market, improve resource allocation efficiency, and promote a green and low-carbon energy transition [5] - Sichuan Electric Power plans to continue collaborating with government authorities to strengthen the rules, technology, and operations of the market [5]

Core Insights - The establishment of a provincial-level electricity spot market in Sichuan, Chongqing, and Qinghai marks a significant milestone in the construction of a unified national electricity market in China, reflecting the progress of electricity system reform and the new energy system [2] - The electricity spot market operates like a "power stock market," facilitating real-time bidding to accurately reflect current electricity supply and demand, thereby optimizing resource allocation across the country [2] - The construction of the electricity spot market has accelerated this year, with seven provincial markets officially operational and others in trial phases, achieving the goal of provincial market coverage two months ahead of schedule [2] Resource Optimization and Supply Stability - The value of the electricity spot market in ensuring supply stability and resource optimization was highlighted during the peak summer demand period, with significant reductions in non-operating and obstructed rates of power generation units in Shandong and Hubei [3] - Inter-provincial spot trading played a crucial role, with a maximum mutual assistance capacity of 14.32 million kilowatts, effectively supporting over 20 provinces, including Sichuan, which purchased over 29.2 billion kilowatt-hours to alleviate summer electricity shortages [3] - Price signals from the spot market encouraged users to adjust their electricity consumption flexibly, with 4.46 million commercial and industrial users in Shandong utilizing time-of-use pricing to optimize their load during peak hours [3] Future Outlook - As the construction of electricity spot markets continues, the production organization of electricity in China is transitioning towards marketization, which is expected to enhance system regulation capabilities, ensure reliable grid operation, and promote the consumption of renewable energy [3]

Core Viewpoint - The Sichuan Provincial Electric Power Company has initiated the first trial settlement of the electricity spot market, marking a significant step in the construction of China's first provincial-level electricity spot market primarily based on hydropower [1] Group 1: Market Development - The new electricity spot market model proposed by the Sichuan provincial government emphasizes "multi-source participation, full volume optimization, and all-water period operation" [1] - A working group has been established, involving government departments, power generation and consumption enterprises, grid companies, market operation institutions, and research universities to tackle unique market construction challenges in a hydropower-dominant province [1] Group 2: Challenges and Solutions - The company is addressing three major challenges: optimizing hydropower-electricity coordination, connecting short-term spot optimization with long-term reservoir utilization, and managing supply-demand conflicts to ensure stable prices [1] - The company has developed a "1+5" spot market rule system tailored to Sichuan's characteristics, achieving a complete reconstruction and two iterations of the rule system within a year [1] Group 3: Operational and Technical Framework - A comprehensive market operation system has been created, integrating business functions, data connectivity, risk prevention, and monitoring management across all stages [1] - A technical system centered on the spot market has been established, promoting efficient collaboration among various multidimensional systems [1] Group 4: Trial Operations - To ensure the smooth execution of the trial settlement, the company has conducted system adjustment tests and three simulation operations to validate market rules, operational management systems, and technical support functionalities [2] - A 24/7 business consultation hotline has been set up to enhance market operation support and mitigate various market risks during the trial [2]

Core Viewpoint - The article discusses the implementation timeline and requirements for the construction of the electricity spot market in China, as outlined in the recent notification from the National Development and Reform Commission and the National Energy Administration [2][3]. Group 1: Timeline for Electricity Spot Market - The Hubei electricity spot market is set to officially operate by the end of June 2025, while the Zhejiang market aims for the end of 2025 [2]. - Anhui and Shaanxi are targeting to transition to formal operation by the end of June 2026 [2]. - By the end of 2025, several provinces including Fujian, Sichuan, and others are expected to initiate trial operations for continuous settlement in the spot market [2]. Group 2: Requirements for Market Operation - A province's electricity spot market can transition to formal operation after running continuously for over a year and meeting the conditions set by the "Basic Rules for Electricity Spot Market (Trial)" [3]. - The evaluation for transitioning to formal operation must be conducted by an independent third-party organization that has not participated in the local market's rule-making or technical support [3]. - The formal operation of the spot market requires approval from the provincial government and must be reported to the National Development and Reform Commission and the National Energy Administration [3]. Group 3: Participation and Mechanisms - By the end of 2025, provinces with operational spot markets must enable user-side entities to participate in market applications, clearing, and settlement [3]. - New mechanisms for market entry, registration, pricing, and settlement assessments must be established to accommodate new business entities [3]. - The long-term contract fulfillment ratio for participants in the spot market must align with national energy security supply requirements [3].

Core Viewpoint - The notice issued by the National Development and Reform Commission and the National Energy Administration outlines the conditions under which electricity spot markets can transition to formal operation after running for over a year and passing third-party evaluations [1] Group 1: Market Transition Conditions - Electricity spot markets that have been operational for more than one year and meet the formal operation criteria as per the "Basic Rules for Electricity Spot Markets (Trial)" can proceed to formal operation [1] - The first responsible unit must select and commission a third-party organization with professional capability and experience, which has not participated in the local electricity market scheme development, to conduct the evaluation [1] - The evaluation report must be publicly disclosed in an appropriate manner [1] Group 2: Approval and Reporting Requirements - Provincial-level electricity spot markets must obtain approval from the provincial government and report to the National Development and Reform Commission and the National Energy Administration for record-keeping [1] - For regions planning to conduct continuous settlement trial operations, a third-party organization must be commissioned to verify the technical support system, and the verification report must be publicly disclosed [1] - Regions that do not pass the system verification are not allowed to transition to continuous settlement trial operations [1] Group 3: User Participation and Mechanisms - By the end of 2025, provinces with formal operation and continuous settlement trial operations must enable user-side entities to participate in the spot market for declaration, clearing, and settlement [1] - Mechanisms must be established to meet the needs of new business entities, including access requirements, registration procedures, pricing methods, and settlement assessments [1] - The long-term contract fulfillment ratio among market participants must comply with national energy security supply requirements [1]