China set to start national electricity market by year-end

China is on track to launch a nationwide electricity trading system by the end of 2025, according to the head of its main power grid company. Pang Xiaogang, president of State Grid Corp. of China, shared this update during a discussion at the World Economic Forum in Tianjin, known as Summer Davos. The new system aims to create a single platform where electricity can be bought and sold across the country, making the energy market more efficient.

Currently, China’s power system is split into regional markets, which can lead to inefficiencies and uneven pricing. A unified market will help balance supply and demand, especially as China pushes for cleaner energy sources like wind and solar. This move supports the country’s goal to reduce carbon emissions and improve energy reliability.

Pang expressed confidence that the platform will be ready on time, despite the challenges of coordinating such a large system. The initiative is part of China’s broader efforts to modernize its energy sector and meet growing electricity needs. By connecting producers and consumers nationwide, the market could lower costs and ensure a steadier power supply. This development comes as China continues to invest heavily in renewable energy.

The national market will likely encourage more investment in green projects, aligning with global efforts to combat climate change. As the world watches, China’s progress in building this system could set an example for other nations aiming to streamline their energy markets.