The National Development and Reform Commission and the National Energy Administration recently officially released the *Basic Rules for Medium and Long-Term Electricity Trading – Special Chapter on Green Electricity Trading*, which clarifies the definition, scope, and pricing mechanism of green electricity trading, and establishes a unified national green electricity trading framework. The issuance of this Special Chapter marks an important step in advancing the market system and long-term mechanism for green energy production and consumption in China.
Green electricity trading refers to the direct purchase of green electricity (such as photovoltaic and wind power) by electricity-consuming enterprises from power generation companies, along with the acquisition of corresponding green electricity consumption certificates ("green certificates"). As a market-oriented trading method for green electricity products, it fully reflects both the energy value and environmental value of green electricity, achieving a high unity of economic, social, and environmental benefits. From the perspective of innovative and green development concepts, green electricity trading internalizes the externalities of renewable energy within the energy industry, objectively promoting technological innovation in the energy and electricity sector. It helps accelerate the increase of "green" content in economic development, supports the achievement of "dual carbon" goals, and provides sustained impetus for the development of new productive forces.
China's green electricity trading market is developing rapidly. Statistics show that in the first five months of this year, the trading volume of green electricity and green certificates exceeded 180 billion kWh, a year-on-year increase of approximately 327%. Among this, green electricity trading reached 148.1 billion kWh, and 39.07 million green certificates were traded, corresponding to 39.07 billion kWh. Enterprises participating in green electricity trading have not only achieved their own green transformation but also driven the development of new productive forces. Looking ahead, as the market scale expands further, green electricity trading still needs to address issues such as inactive green electricity consumption, absorption difficulties, poor coordination between electricity and carbon markets, and low international recognition of green certificates.
In terms of institutional reform and optimization:
- Improve incentive mechanisms for the green electricity consumption market. This includes enhancing policy support for green electricity consumption, such as providing tax incentives and financial subsidies to enterprises or individuals participating in green electricity trading, and raising public awareness and acceptance of green electricity through publicity and education to stimulate market demand.
- Formulate clear cross-provincial green electricity trading rules and regulatory measures, including processes for transaction declaration, settlement, and penalty for breach of contract, to improve the fairness and transparency of transactions and ensure the nationwide circulation and absorption of green electricity.
- Establish a dual-track green electricity trading market system. Relying on the Renewable Portfolio Standard (RPS), a mandatory trading market will be set up to ensure the proportion of green electricity supply. At the same time, a voluntary trading market will be developed, exploring diversified trading products and flexible methods such as green electricity futures and options to meet the different risk preferences and investment needs of market participants.
In terms of technological innovation and standard-setting:
- Strengthen research, development, and promotion of green electricity technologies. By establishing special research funds with clear procedures for application, use, and evaluation, encourage research institutions and enterprises to invest in R&D in green electricity production, energy storage, and power dispatching technologies.
- Build a dynamic database of power emission factors, updating data in real-time based on technological progress and energy structure adjustments, and providing detailed calculation methods and formulas for emission factors to accurately reflect the actual impact of green electricity trading on carbon emissions.
- Proactively engage with international green certificate issuers to seek mutual recognition mechanisms, facilitating the circulation and exchange of domestic and foreign green certificates, improving the international recognition of China's green certificates, and enhancing the international competitiveness of green electricity trading.
(Bo Hai)
Source: Economic Daily
