General Office of the National Development and Reform Commission, General Department of the National Energy AdministrationDocument No.: FGBGTG 〔2025〕 No. 1032

To the development and reform commissions and energy bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps; the Tianjin Municipal Bureau of Industry and Information Technology, the Inner Mongolia Autonomous Region Department of Industry and Information Technology, the Liaoning Provincial Department of Industry and Information Technology, the Guangxi Zhuang Autonomous Region Department of Industry and Information Technology, the Chongqing Municipal Commission of Economy and Information Technology, the Sichuan Provincial Department of Economy and Information Technology, and the Gansu Provincial Department of Industry and Information Technology; the Beijing Municipal Commission of Urban Management; all dispatched offices of the National Energy Administration; State Grid Corporation of China, China Southern Power Grid Co., Ltd., and Inner Mongolia Power (Group) Co., Ltd.; Beijing Electricity Trading Center and Guangzhou Electricity Trading Center; China Electric Power Planning & Engineering Institute, HydroChina Planning & Design Institute; and China Electricity Council:

To thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council on accelerating the development of a unified national market and deepening the reform of the electricity system, and to ensure the efficient operation and effective regulation of the national unified electricity market system, we hereby notify you of the relevant matters concerning the establishment of an evaluation system for the national unified electricity market as follows.

I. General Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement the guiding principles of the 20th National Congress of the Communist Party of China and all plenary sessions of the 20th Central Committee. In accordance with the requirements for improving the national unified electricity market system and focusing on the overall goal of accelerating the construction of a new-type power system, we will build a scientific, systematic, and dynamic electricity market evaluation framework. We will balance multiple objectives such as ensuring energy security and supply, promoting green transition, and improving economic efficiency to comprehensively and accurately assess the operational effectiveness of the electricity market. This will provide a decision-making basis for the development and regulation of the electricity market, enhance the scientificity and precision of regulatory work, and further give play to the decisive role of the national unified electricity market in the optimal allocation of power resources.

II. Evaluation Content

The evaluation of the national unified electricity market shall conduct a multi-dimensional comprehensive assessment in light of the progress of market development, focusing on four key aspects: market operation performance, market function effectiveness, sustainable development of market entities, and market competition adequacy.

(I) Evaluation of Market Operation Performance

Progress in Market Development: Establish a comprehensive basic regulatory framework for the unified electricity market. Local governments shall promptly formulate implementation rules or plans to achieve basic full coverage of medium-and long-term, spot, and ancillary services markets nationwide.

Technical Standards: Develop a complete technical standard system for the electricity market, which is well-aligned with market policies and regulations, meets the current needs of market development and industrial progress, and reflects advanced technologies and practical applications in the electricity market.

Market Operation: Evaluate the establishment of the basic operational framework, including efficient management and registration services for market participants; timely, accurate, and comprehensive disclosure of market information; standardized organization of market transactions; prompt and accurate metering and settlement; reasonable implementation of market intervention mechanisms; and smooth market connection. Ensure that the technical support system for the electricity market meets the requirements of building a unified market, with complete functions, standardized development, and reliable security.

Market Co-governance: Ensure that the Electricity Market Management Committee effectively fulfills its roles in researching market rules, coordinating market issues, reflecting the demands of various stakeholders, conducting self-regulatory supervision, and assisting in market regulation to safeguard fairness, impartiality, stability, and order in the electricity market.

Regulatory Effectiveness: Establish a unified regulatory system for the electricity market with consistent national regulatory standards and scientific and comprehensive regulatory tools. Digital technologies shall be applied to improve regulatory efficiency.

(II) Evaluation of Market Function Effectiveness

Factor Circulation: Promote the efficient cross-regional flow of power resources, with increasing frequency and scale of inter-provincial and inter-regional electricity transactions to enhance the overall operational efficiency of the power grid. Regular cross-regional transactions shall be conducted to effectively implement national energy strategies such as west-to-east power transmission and facilitate the mutual complementarity of power surpluses and shortages among provinces.

Security Benefits: Ensure the continuous and reliable supply of electricity and the safe and stable operation of the power grid through the coordinated operation of the energy market, ancillary services market, and capacity compensation mechanism. Evaluate the peak-shaving and supply-guarantee incentives of the energy market for various power sources, the role of the ancillary services market in tapping the regulation potential of both the generation and consumption sides to support grid stability, and the rational guidance of capacity pricing for investments in supporting power sources and regulating resources.

Environmental Benefits: Assess how market mechanisms and policies promote the high-quality development and integration of new energy, drive the expansion of green power trading scale and the development of green certificate markets, realize green environmental value, maintain a reasonable utilization rate of new energy, improve carbon emission reduction benefits per kilowatt-hour, and support the national "dual carbon" goals.

Economic Benefits: Measure changes in the overall economic benefits of the electricity market. The market shall dynamically set prices based on supply and demand to effectively guide the optimal cross-temporal and cross-spatial allocation of resources, maintain electricity prices within a reasonable range, ensure the reasonable recovery of power generation costs, and improve the overall system economy and investment return expectations.

(III) Evaluation of Sustainable Development of Market Entities

Operational Status: Evaluate whether market mechanisms guide rational investment layout, ensure cost recovery and stable operations for power enterprises, enhance the sustainable development capacity of the industry, and maintain stable industrial operations.

Entity Cultivation: Assess whether the market provides room for the development of new business forms such as energy storage and virtual power plants, promotes the participation of private enterprises, drives the growth of related industrial chains, and boosts employment and the development of new quality productive forces in the energy sector.

Market Satisfaction: Evaluate whether market entities hold a positive view of the basic environment and overall effectiveness of the electricity market, with increasing willingness and degree of participation and stronger market recognition.

(IV) Evaluation of Market Competition Adequacy

Entity Behavior: Ensure the unified and open operation of the electricity market with orderly competition among entities. Effectively restrain improper market competition, abnormal quotation, and abuse of market power. Improve the credit mechanism of the electricity market to punish market misconduct.

Market Concentration: Maintain the market concentration index within a reasonable range, dynamically monitor and control risks related to supply-demand balance and price fluctuations, and establish a sound and effective market risk prevention and control mechanism.

III. Evaluation Methods

(I) Establish an Evaluation Index and Standard System

Taking into account the actual operation of the electricity market, we will gradually establish an evaluation index system that is practical, accessible, and representative to comprehensively and accurately reflect the multi-dimensional evaluation content, with dynamic adjustments and improvements made in a timely manner. We will also develop a standard system and norms for electricity market evaluation to standardize the evaluation process.

(II) Adopt a Multi-dimensional Comprehensive Analysis Approach

Combination of Qualitative and Quantitative Analysis: Qualitative analysis shall be conducted through on-site investigations, expert interviews, stakeholder forums, and questionnaires. Quantitative evaluation shall be based on the evaluation index system, with specific indicators to be formulated separately.

Combination of Horizontal and Vertical Comparisons: Horizontal comparisons shall be made among different evaluation objects, while vertical comparisons shall analyze the changing trends of the same evaluation object over different periods.

Combination of Process and Effect Evaluation: Process evaluation shall focus on the design, implementation, and dynamic operation of market rules. Effect evaluation shall measure the efficiency of resource allocation, the distribution of social welfare, and the achievement of policy objectives.

(III) Leverage Digital Technology Support

Give full play to the supporting role of digital technologies in electricity market evaluation and strengthen the coordination between market evaluation and digital regulation. Achieve real-time monitoring of market operations through digital regulation to identify abnormal fluctuations, potential risks, and inefficiencies promptly, thereby improving the timeliness and responsiveness of evaluation. Promote the intelligentization of market evaluation, gradually upgrading it from a "descriptive" tool to a "predictive" one, making evaluation observable, measurable, and perceptible. This will provide key support for proactively preventing market risks, optimizing market rules, and ensuring the safe and stable operation of the power system.

(IV) Conduct Evaluation in an Orderly Manner as Needed

We will launch the evaluation of the national unified electricity market starting from 2026 and formulate market evaluation standards. Local governments are encouraged to carry out electricity market evaluations in light of local conditions. Market operators are also encouraged to leverage their advantages to conduct quantitative market evaluations and promptly identify and report issues related to the development and operation of the electricity market.

(V) Strengthen the Application of Evaluation Results

Evaluation reports shall be prepared to serve as a reference for relevant government departments and market operators. Dispatched offices of the National Energy Administration, local energy authorities, and market operators shall effectively apply the evaluation results, strengthen analysis and assessment, and implement rectification and improvement measures.

IV. Organizational Implementation

The evaluation of the national unified electricity market shall be coordinated and organized by the National Development and Reform Commission and the National Energy Administration, with the participation of market operators, universities, research institutes, and other institutions. Under the leadership of provincial people's governments, provincial-level development and reform commissions, energy departments, and other relevant authorities shall assume primary responsibilities, strengthen coordination with dispatched offices of the National Energy Administration and market operators to form a synergy, jointly conduct electricity market evaluations, and continuously improve market development and regulatory work. All organizations and participants involved in the evaluation shall perform their duties in accordance with relevant laws and regulations, conduct independent, professional, and comprehensive evaluations, and produce fair and objective results. Dispatched offices of the National Energy Administration may, based on regulatory needs, entrust third-party institutions to conduct professional regulatory assessments on the electricity market operations of market operators. All relevant entities shall ensure the safe and stable conduct of the evaluation work, improve work efficiency, reduce the burden on local governments and enterprises, and avoid ineffective, redundant, or overlapping evaluations.

General Office of the National Development and Reform Commission

General Department of the National Energy Administration

December 2, 2025

Source: Official Website of the National Development and Reform Commission of the People's Republic of China