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08 Sep China Launches National Green Electricity Trading Trial
State Grid Corporation of China and China Southern Power Grid (CSG) launched the national-level green electricity trading trial for the first time on September 7, following approval from NDRC and National Energy Administration (NEA), as reported by Xinhuanet on the same day. According to the trial plan of State Grid and CSG, Beijing and Guangzhou Power Exchange Center will carry out transaction-related works. At the launch meeting, a total of 259 entities in 17 provinces participated in transactions, amounting to the electricity of 7.935bn kilowatt-hours (kWh). Among them, 6.898bn kWh of electricity was sold in the operating regions of State Grid, and 1.037bn kWh was in CSG’s regions. The first batch of green electricity deals is expected to reduce standard coal consumption by 2.436m tons and carbon dioxide emissions by 6.072m tons.
Green electricity trading allows users to purchase green electricity directly from new energy enterprises, which could embody the environmental value of green electricity through market transactions and meet corporate demands for green power. China’s green electricity trading currently unites electricity purchases with green licenses. Under the national pilot program, power exchange centers will distribute traceable green electricity consumption certificates to buyers according to their transaction results. To facilitate entities to participate in green electricity trading, State Grid has developed a comprehensive service platform for the power market, covering all market players and providing the full range of related products and services.
Over the near term, the green electricity trading pilot gives priority to no-subsidy wind and photovoltaic power projects and will include hydropower and other renewable energy in the future. By this May, the installations of wind and solar power in China were respectively 290m kilowatts (KW) and 260m KW, up 34.4% and 24.7% YoY. The trial will help promote wind and photovoltaic power to become the major power sources of China’s planned new power system, as well as realizing the country’s 2030 carbon peaking and 2060 carbon neutrality goals. In December 2020, President Xi Jinping announced that by 2030, China’s total installed wind and solar power would reach over 1.2bn KW, with non-fossil energy consumption accounting for around 25% of the total. At that time, it is expected that the transaction scale of green electricity will also boost. At present, the main consumers of green electricity are exporters, companies that pledged future 100% renewable energy, and domestic firms that are committed to buying green electricity. In addition, 222 entities in State Grid’s operating areas have applied for transactions, with an intention of electricity purchases at about 10bn kWh.