China State Planner and the National Energy Administration issued the 15th Five-Year Plan for New Power System Construction, proposing a '1+N' basic-rule framework for the power market and tighter alignment of national and local rules. The plan aims to broaden participation by new market entities, normalize cross-grid trading and gradually reduce proxy (agency) power procurement. It calls for improved ancillary services markets and exploration of a capacity market, deeper electricity price refor

China State Planner and the National Energy Administration issued the 15th Five-Year Plan for New Power System Construction, proposing a '1+N' basic-rule framework for the power market and tighter alignment of national and local rules. The plan aims to broaden participation by new market entities, normalize cross-grid trading and gradually reduce proxy (agency) power procurement. It calls for improved ancillary services markets and exploration of a capacity market, deeper electricity price reform and market-based pricing for hydro, nuclear and gas generation. The plan proposes exploring two-part or single-capacity transmission pricing for cross-provincial special projects, implementing price mechanisms to support nearby consumption of renewables, refining transmission-and-distribution tariff incentives and constraints to steer grid investment, studying pricing for offshore wind evacuation, and optimizing residential tiered tariffs while promoting residential time-of-use pricing.