The plan outlines a phased approach, making Shandong the first province in China to establish a clear timeline and entry thresholds for new energy market participation.
From CLS
On December 19, the Shandong Provincial Government released the "Measures for Improving the New Energy Consumption System and Promoting High-Quality Energy Development" (hereinafter referred to as the "Measures"), marking a significant step in advancing the integration of renewable energy into market-based trading. The plan outlines a phased approach, making Shandong the first province in China to establish a clear timeline and entry thresholds for new energy market participation.
Under the "Measures," new wind power projects (including distributed wind) commissioned between 2025 and 2026 can opt to trade either 30% of their electricity output or their entire output in the market. Similarly, new photovoltaic (PV) projects (including distributed PV) may participate with 15% or their entire output. By 2030, all new wind and PV projects will be required to fully integrate into the market. The policy allows for adjustments in response to future national directives.
This proactive move highlights Shandong's leadership in renewable energy development. As one of China's largest provinces in terms of installed renewable energy capacity—and the national leader in photovoltaic deployment, especially distributed PV—Shandong has positioned itself at the forefront of the energy transition. The province is also one of eight pilot regions for the national electricity spot market initiative, which officially began full-scale operations in June 2023.
Experts note that Shandong's new energy market integration policy has been under development for some time, with many in the industry anticipating its release. The stipulated 15% market participation ratio for PV projects is seen as relatively modest, reflecting a cautious and phased approach. Importantly, the policy framework remains flexible, allowing for updates to align with future national guidelines.
On December 17, the Shandong Energy Bureau issued a related notice, "Guidelines for Electricity Market Transactions in 2025," calling for the orderly and categorized integration of new energy projects into the electricity market. For wind and centralized PV projects approved before the end of 2024 and included in the provincial annual construction plan, as well as distributed PV projects already connected to the grid, existing rules will continue to apply. Future adjustments will align with subsequent national policies.
As renewable energy continues to grow rapidly, with its share of total power generation climbing steadily, integrating new energy sources into the market has become an inevitable trend. Shandong's efforts to set clear targets and establish a phased approach provide a model for other regions as China works toward a unified energy market.