The Shanxi Power Spot Market, China's first fully operational electricity spot market, has just completed its first year.
From CHINANEWS
The Shanxi Power Spot Market, China's first fully operational electricity spot market, has just completed its first year. Over the course of 2024, the market facilitated the trading of around 180 billion kilowatt-hours (kWh) of electricity, with green power exports ranking first nationwide. According to Zhang Xiang, Director of the Shanxi Provincial Energy Bureau, this market was the first in China to move into full operation. Currently, over 19,000 market participants, including five virtual power plants, eight independent energy storage providers, and one pumped-storage hydroelectric plant, are actively involved.
The successful operation of the Shanxi Power Spot Market has played a key role in supporting regional economic transformation and ensuring reliable energy supply. The price signals generated by the market reflect the real-time value of electricity, incentivizing power generators to increase output during peak periods. For instance, during the summer peak, Shanxi’s coal-fired power plants boosted their peak generation capacity by 2 million kilowatts, while reducing generation constraints by 200,000 kilowatts. Additionally, the price signals helped guide users to shift their consumption patterns, resulting in a reduction of peak demand by approximately 950,000 kilowatts.
Shanxi has also strengthened interprovincial power export partnerships with regions such as Jiangsu, Beijing, and Tianjin. This year, the province's net electricity exports exceeded 155 billion kWh, making it the third-largest exporter of electricity in China. Shanxi has also played a significant role in the interprovincial spot market, with 3.6 billion kWh of additional electricity supplied to other regions, placing it fourth in terms of transaction volume.
As the Shanxi Power Spot Market continues to grow, it is helping to drive China's energy transition by improving efficiency in power allocation and fostering stronger regional cooperation. The market not only bolsters Shanxi's green energy development but also strengthens its position as a leader in the national energy landscape.