Shanghai has approved a pilot scheme for hourly green power trading, allowing environmental value to be settled on an hourly basis, according to China Electric Power News.

Under the plan, power sellers participating in hourly green power trading must establish agency relationships with electricity users before the relevant trading deadline, complete hourly green power entitlement delegation agreements, and link all green power demand to their agent users during trading declaration.

The scheme separates settlement of electricity energy from green power environmental value. The environmental value component is calculated hourly as the minimum of contracted volume, generation-side grid-connected volume and consumption-side volume, with settlement conducted on a daily clearing and monthly settlement basis, while conventional green power trading continues on a monthly settlement cycle.