Electricity Reform New Phase: Market Access & Spot Trading Opportunities

The document analyzes the new phase of China's electricity marketization reform, highlighting opportunities in market access and spot trading. It reviews the reform progress from the 13th Five-Year Plan to the 14th, noting accelerated changes due to low-carbon transition and energy inflation. Key 2025 developments include new energy fully entering the market (Document 136), spot trading acceleration (Document 394), and capacity electricity price trends. The spot market era brings real supply-demand pricing, with electricity prices facing downward pressure due to loosening supply-demand patterns and local government desires for lower prices. However, prices may find support near a 20% decline. The reform impacts both generation and user sides, with time-of-use electricity prices adjusted based on new energy output to guide demand-side management. The report expects nationwide spot market continuous settlement trial operation by 2026, marking a comprehensive promotion of spot trading. Overall, the reform enters a new phase with significant implications for power industry stakeholders.