Making Electricity Markets Work: U.S.-China Dialogue

2016-10

The priority of the current power sector reform in China is the establishment and enhancement of competitive electricity markets whereby electricity would be dispatched based on the relative economics of energy and grid resources. 20 months into its inception, the current round of power sector reform is picking up pace fast. Against this backdrop, NRDC convened the 8th Power Sector Roundtable specifically on electricity market design. Six U.S. and Chinese experts had an in-depth exchange with regard to market design issues, renewable energy ad demand-side resources integration. The consensus is that prudence is of critical importance in moving the market reform process forward given its complexity. Inter-regional planning, harnessing grid resource flexibility and ancillary services mechanisms are all helpful in invigorating renewable and demand side resources integration onto the grid. The optimism of Chinese experts on electricity spot markets is worthy of note.

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