The National Development and Reform Commission (NDRC) of China plans to introduce measures to promote renewable power generation and to reduce electricity costs for industrial and commercial consumers as part of China's power market reforms. A new pricing system will be extended from Shenzhen and Inner Mongolia (piloted there since early 2015) to the Anhui, Hubei, Yunnan, and Guizhou provinces and to the Ningxia Hui autonomous region; the date for the expansion of the pilot projects remains unclear.
Under the new pricing system, renewable power producers will be given priority in selling their generation to distributors and large consumers ahead of coal-fired power producers and will benefit from higher, state-regulated power selling prices. Hydro will rank second in terms of priority, followed by nuclear, waste-to-energy and high efficiency, low-emissions coal-fired power plants; they will all benefit from regulated power selling prices.Lower efficiency coal-fired power plants will be subject to market competition.
Electricity trading bodies will be created to promote inter-provincial trade and on-grid prices will be gradually removed, letting the market and consumers setting prices. Large industrial consumers will be allowed to negotiate prices and volumes directly with power producers, while utilities, government services and agricultural consumers will continue to benefit from regulated prices and priority purchase.
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