China’s National Development and Reform Commission (NDRC) has recently updated its electricity market operation rules, which will take effect on July 1. The National Energy Administration (NEA) subsequently hosted a press briefing to elucidate the key modifications to the rules compared to the 2005 version.

The renaming to the “Basic Rules for the Operation of the Power Market” was a notable change to harmonize with the terminologies outlined in the Electricity Regulations issued by the State Council. Additionally, changes were made to the market’s scope, operational entities, and transaction subjects.

The revised rules now encompass a broader range of market participants, including power market operators, grid companies, provincial-level power trading centers, power sales firms, energy storage companies and virtual power plants, with the goal to ensure competition and orderliness in the market.

Furthermore, the transaction categories have been refined to encompass medium- and long-term trading, spot and power auxiliary service trading, involving services such as frequency regulation, peak shaving, and other remunerated auxiliary services. The trading can be executed through bilateral and centralized trading mechanisms, with market competition determining the providers of qualified auxiliary services.

The updated regulations also enhance the criteria concerning risk prevention and management and establish guidelines for intervening in the electricity market during risky situations.

（Picture: Veer）