New Power System Market Operation Mechanism and Policy

This document provides a comprehensive overview of the policy background, construction framework, and market operation mechanisms for China's new power system. It traces key policy milestones from 2015 to 2025, including reforms in electricity trading, spot markets, renewable energy consumption guarantees, and ancillary services pricing. The new power system is characterized by safety, efficiency, clean low-carbon development, and flexibility. It outlines four basic characteristics: safety and efficiency with coal power as a ballast, clean and low-carbon with non-fossil energy dominance, flexibility through diverse generation and storage technologies, and integration of distributed resources. The document also discusses the construction of a unified national electricity market, recommendations for market operations, and simulation approaches. Key initiatives include accelerating new power system construction, promoting green power certificates, and deepening market-based reforms for new energy on-grid prices. The framework supports China's dual carbon goals and energy transition.