China plans to establish a unified power market by 2030, allowing all types of power sources and consumers (excl. those involved in power security) to directly participate in the market. The goal is for approximately 70% of power trades to be market-based, according to a roadmap unveiled by the State Council on February 11.

The roadmap outlines a phased development for a national unified power market. By 2030, the country seeks to increase market-based power trades to 70%, with a focus on building a more mature, fully integrated system by 2035. This system will include unified rules, standards, and oversight, reducing regional market fragmentation.

This initiative aims to expand trading volumes, improve the market structure, and strengthen its role in allocating resources across provinces and regions.

Additionally, the country plans to expand spot trading nationwide by 2027, which currently represents a small portion of total transactions. The spot market is viewed as an effective tool for real-time price discovery, better reflecting supply and demand conditions, and providing stronger dispatch signals. This will be particularly valuable as renewable energy's share in the power mix grows.

The establishment of a unified national power market will connect cross-provincial and intra-provincial power trades, optimizing nationwide power allocation and encouraging mutual assistance between provinces.

The roadmap also seeks to expand the range of market participants. It aims to gradually reduce the scale of power grid proxy purchases, encouraging consumers with more than 10 kV to participate in the market directly. Additionally, consumers will be able to procure electricity via spot markets from a wider range of sources, including renewables.

Under the premise of ensuring safety, the plan will also promote the flexible participation of new business entities, such as virtual power plants, smart microgrids, and adjustable loads. Furthermore, it will accelerate the formulation and revision of standards for the operation, monitoring, grid connection, two-way metering, and information exchange of these new business entities.