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Power trading platforms for liberal sector
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China is planning to set up power trading platforms to allow generators and end-users to directly negotiate prices as it seeks to develop a more liberal power market, the country鈥檚 top economic planner said yesterday.
鈥淲ork to establish the platforms has started,鈥 Lian Weiliang, deputy director of the National Development and Reform Commission, told a briefing in Beijing yesterday.
鈥淚t鈥檚 crucial to have trading venues and platforms to bring together generators and buyers and to allow the market to determine power prices,鈥 Lian said.
China鈥檚 electricity prices are now fixed by the government, which creates a dilemma for utilities whose tariffs are strictly controlled while coal prices are set according to market forces.
China initiated a pilot program in Shenzhen when it launched a new round of electricity pricing reform last year. Lian said the government will expand the pilot reform to more regions after it has been extended to six provinces and regions, including Inner Mongolia and Ningxia.
The government will promote mixed-ownership reform of state-owned power distribution firms and urge private capital to invest in the sector, Lian said.
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