China is turbocharging its green energy sector with a groundbreaking shift from fixed to market-based electricity pricing. On February 9, 2025, the National Development and Reform Commission (NDRC) and National Energy Administration (NEA) rolled out a new policy aimed at integrating wind and solar power seamlessly into the electricity market.
✨ Why This Matters: By the end of 2024, China's wind and solar power capacity surpassed a whopping 1.2 billion kilowatts, making up over 35% of the country's total energy mix. This exponential growth means it's time to evolve beyond the old system of fixed prices and guaranteed purchases.
🔍 The Big Change: The new reform introduces a market signaling mechanism to better allocate resources. Instead of relying on fixed-price guarantees, which helped scale up projects but stifled market dynamics, the new approach encourages competition and flexibility. This is crucial as the electricity spot market expands and the traditional power system adapts to the variable nature of renewable energy.
💡 What's in It for the Future: The dual-track system of market pricing + differential settlement ensures that existing projects remain profitable while new ones innovate and compete. This balanced strategy supports China's ambitious \"dual carbon\" goals: peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.
🌍 Impact on the Global Stage: This reform isn't just a win for China; it's a blueprint for sustainable energy transition worldwide. By fostering a vibrant market for renewable energy, China is setting the stage for a cleaner, greener future.
Stay tuned with amigonews.net for more updates on how these changes are shaping the global energy landscape! 🚀
Reference(s):
cgtn.com
