感谢央视CGTN约稿，撰写《释放中国绿色经济新动能》（英文），主要围绕国家发展改革委、国家能源局近日发布的《关于深化新能源上网电价市场化改革 促进新能源高质量发展的通知》展开。该通知旨在推动风电、太阳能发电等新能源上网电量全面进入电力市场。长远看，深化新能源上网电价市场化改革不仅有利于推动新能源行业高质量发展，而且有利于促进新型电力系统建设，对电力行业发展意义重大。

英文原文如下：

Economy16:16, 18-Feb-2025

Wang Peng

Editor's note: Wang Peng is a research fellow at the Institute of State Governance, Huazhong University of Science and Technology and the Eurasian Research Institute, Renmin University of China. The article reflects the author's opinions and not necessarily the views of CGTN.

On February 9, 2025, China's National Development and Reform Commission (NDRC) and National Energy Administration (NEA) jointly issued the Notice on Deepening the Market-Oriented Reform of New Energy On-Grid Electricity Prices to Promote High-Quality Development of New Energy. The reform aims to fully integrate wind and solar power generation into the electricity market. The move marks a historic shift in China's new energy pricing mechanism, transitioning from "planned pricing" to "market-based pricing." From a long-term perspective, deepening the marketization of new energy on-grid electricity pricing will not only inject market vitality into the high-quality development of the new energy sector but also provide institutional guarantees for the construction of a new power system. The institutional innovation embedded in this reform will have a profound impact on the country's energy transition process and the implementation of its "dual carbon" strategy, i.e. to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.

Background and necessity of deepening market-oriented reform of new energy electricity pricing

China's new energy development is at a historic turning point. By the end of 2024, the total installed capacity of wind and solar power had exceeded 1.2 billion kilowatts, accounting for over 35 percent of the country's total power generation. As the scale of installations continues to expand, the existing policy framework — based on fixed electricity prices and guaranteed purchases —has become increasingly inadequate. On the one hand, following the phase-out of financial subsidies, a new price formation mechanism is needed to support the industry's sustainable development. On the other hand, the inherent volatility of new energy generation has created growing tensions with the operational mechanisms of the traditional power system.

The core of the market-oriented reform lies in establishing a price signaling mechanism to guide resource allocation. In the past, new energy projects generally benefited from fixed-price guarantees, which effectively facilitated large-scale industrial expansion but also weakened the market's regulatory function and blurred the boundaries of consumption responsibilities. In particular, as construction of the electricity spot market accelerates, if new energy projects remain outside the market framework, it will be difficult to generate accurate price signals and incentivize market participants to enhance system flexibility.

The reform will directly address the deep-seated contradictions in new energy development. By implementing a dual-track mechanism of "market pricing + differential settlement," the reform will maintain policy continuity while strengthening market incentives, ensuring reasonable returns for existing projects while encouraging new projects to adapt to market competition. This gradual reform approach has taken into full consideration China's power market development stage and the industry's capacity to absorb changes, embodying the strategic wisdom of "progress while maintaining stability."

Wind turbines in operation at Ouma Tinga wind farm near Naqu, Xizang Autonomous Region, on September 10, 2024. /CFP

Implementation path for market-oriented new energy pricing

The reform framework consists of a three-pronged approach to marketization.

Firstly, a comprehensive market integration principle mandates that, in principle, all new energy electricity must enter the power market, either through quantity-based bidding or by accepting the market-clearing price. This "full market entry" policy will break the previous dual-track operation model, ensuring that new energy is fully integrated into the power market system.

Secondly, the reform will foster market mechanism innovation. In the spot market, the price cap has been relaxed, and bidding rules have been optimized to allow new energy to leverage its marginal cost advantages and participate flexibly in real-time competition. In the medium- and long-term market, the introduction of a "multi-year power purchase agreement" mechanism will encourage power generators and users to establish long-term stable trading relationships. This integrated short-, medium-, and long-term transaction system will not only accommodate the unique output characteristics of new energy but also provide enterprises with effective risk management tools.

The most innovative aspect is the introduction of a differential settlement mechanism. To mitigate potential price volatility in the early stages of market operation, the reform has designed a "market transaction + mechanism price" differential compensation system. It maintains policy continuity for existing projects while requiring new projects to undergo competitive bidding for access, establishing a dynamic adjustment mechanism based on "price determining volume." This design will prevent excessive revenue fluctuations during the market transition while ensuring that competitive bidding selects the most efficient projects, achieving a balance between policy protection and market competition.

How market reform facilitates high-quality development of the new energy industry

Price signals will fundamentally reshape the industry's development logic. Market-based pricing will compel enterprises to shift from "scale expansion" to "value creation," driving technological innovation to reduce the levelized cost of electricity and optimizing operations to enhance market competitiveness. Particularly in the spot market, the low marginal cost advantage of new energy projects will be fully realized, pressuring traditional power sources to accelerate flexibility retrofitting.

Market-based mechanisms will significantly improve the system's capacity to integrate new energy. When new energy electricity is fully incorporated into market clearing, its volatility characteristics will be transmitted throughout the system via price signals. This transmission mechanism will incentivize investment in energy storage, demand response, and other flexible resources, fostering the development of a "source-grid-load-storage" interactive new power system. Data from pilot provinces indicate that market-based trading has increased new energy utilization rates by an average of 3 to 5 percentage points.

Unlocking the monetization of green value holds even greater strategic significance. The reform mandates that green power transactions separately specify green certificate prices, effectively establishing a market-based pricing mechanism for environmental rights. As the carbon market and electricity market develop in tandem, the environmental premium of new energy projects will gradually become explicit, creating new value growth opportunities for the industry. Estimates suggest that monetizing environmental benefits could increase the return on investment for new energy projects by 2 to 3 percentage points.

A worker checking low-carbon aluminium materials at a new energy resources company in Huaibei, Anhui Province, on February 11, 2025. /CFP

New opportunities for Chinese new energy enterprises

The green economic momentum unleashed by the market-oriented reform of new energy electricity pricing will create new opportunities for new energy enterprises in China.

Firstly, the establishment of market-based entity status will drive a paradigm shift in development. New energy enterprises will transition from being mere electricity producers to integrated energy service providers, necessitating the development of new capabilities in power trading, risk management, and value-added services. Leading companies in China's new energy sector have already begun exploring emerging businesses such as virtual power plants and green certificate trading to build differentiated competitive advantages.

Secondly, the diversification of revenue sources will enhance industry resilience. The reform will enable enterprises to not only benefit from electricity sales but also generate revenue from capacity leasing, flexibility services, and environmental attribute trading. This comprehensive business model will help new energy enterprises establish a stable cash flow system in a market-oriented environment, reducing their reliance on government subsidies.

Finally, the reform will accelerate the internationalization of Chinese new energy enterprises. As pricing mechanisms and market rules become more aligned with global energy markets, Chinese enterprises will gain a competitive edge in overseas project development, equipment exports, and international electricity trading. This will further solidify the country's leadership in global energy transition.

Conclusion

The market-oriented reform of new energy electricity pricing is a crucial step in China's energy transformation. By leveraging market mechanisms to optimize resource allocation, improve system flexibility, and enhance investment returns, this reform will accelerate the realization of the "dual carbon" goals while fostering new drivers of green economic growth. Looking ahead, continued policy refinement and deepened marketization will be key to ensuring the long-term stability and prosperity of the nation's new energy sector. The reform will not only chart a clear path for domestic energy development but also provide a valuable reference for the global energy transition.