- China plans a unified national electricity market by 2030, enabling nationwide electricity trading.
- Blockchain will verify green power, boosting trust in renewable electricity and carbon accounting.
- Reforms expand flexible power, virtual plants, and market oversight to strengthen grid reliability.
China plans to reform its power sector by creating a unified national electricity market, using blockchain to track green energy use. A new policy from the State Council lays out a roadmap through 2035, including blockchain for verifying green power and recognizing green certificates in carbon accounting.
Blockchain to Power Green Electricity Verification
Under the reforms, China will accelerate the creation of a nationally unified green certificate market. These certificates serve as the official proof of renewable electricity production and consumption.
The policy calls for:
- Full-chain certification of green electricity production and consumption
- Introduction of technologies such as blockchain to strengthen traceability
- Improved monitoring of green certificate prices
- Expansion of both mandatory and voluntary green electricity consumption
By using blockchain, authorities aim to boost trust in green electricity claims and integrate green certificates into carbon accounting. Officials also plan to explore ways to include these certificates in national carbon reporting and gain international recognition for China’s standards.
Unified National Electricity Market by 2030
Beyond green verification, the document lays out an ambitious structural reform of China’s electricity system. By 2030, China plans to:
- Establish a unified national electricity market system
- Enable all types of power sources and eligible users to participate directly
- Ensure market-based trading accounts for roughly 70% of total electricity consumption
- Fully operate a nationwide spot electricity market
By 2035, the unified system is expected to be fully mature, allowing smooth electricity trading within and between provinces, with prices reflecting energy, regulation, environmental impact, and capacity. The reforms also aim to remove regional barriers and local protectionism, making nationwide electricity distribution more efficient.
Strengthening the Green Electricity Market
The green electricity market will be further refined through:
- Multi-year green power trading contracts
- Aggregated green electricity trading models
- Improved transmission of clean energy across provinces
- Exploration of biomass participation in voluntary greenhouse gas reduction markets
Authorities aim to increase green electricity use and better align renewable planning with market trading. They also want green certificate prices to stay at “reasonable levels” through closer oversight.
Capacity Markets and Flexible Power
To keep the grid reliable as renewables grow, China will explore ways to pay power sources for available capacity. Coal plants, pumped storage, and new energy storage may earn compensation for providing reliable power.
Services like frequency regulation and standby support will be expanded and tied more closely to spot market operations. New business models, such as virtual power plants, smart microgrids, and flexible loads, will be allowed to join electricity markets under clear technical and regulatory rules.
Digital Governance and Market Oversight
China plans unified technical standards, shared data models, and connected trading platforms nationwide. A national electricity market credit system will track and share credit information across provinces. Local interference, like price collusion or market abuse, will face stricter oversight, and market access will follow a national “negative list.”
Green and Market-Based Energy Push
The reforms support China’s goals for energy security, economic growth, and green transformation. By linking market reforms with blockchain-based green verification, China aims for a transparent, market-driven system that values renewable energy in domestic and international carbon accounting.
If fully implemented, this plan could reshape electricity trading, pricing, and verification across the world’s largest power system over the next decade.
Related: China’s Rising GDP Share Signals a Shift in Global Economic Power
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