New Power System Market Operation Mechanism and Policy Framework

This document provides a comprehensive overview of the market operation mechanism for new power systems, emphasizing the policy background and construction framework. It traces key policy milestones from 2015 to 2025, including reforms in electricity market rules, renewable energy consumption guarantees, and carbon emissions trading. The new power system is characterized by safety, efficiency, clean low-carbon goals, and flexibility. Key tasks involve integrating diverse energy sources like nuclear, hydro, wind, solar, and storage, while promoting electric energy substitution in industry, transportation, and buildings. The document outlines the development stages and highlights the importance of a unified national electricity market, supported by spot market rules, ancillary services pricing, and green certificate trading. It also discusses simulation methods for market operations and offers suggestions for optimizing market mechanisms to accommodate high shares of renewables, ensuring grid stability and economic efficiency. The action plan for 2024-2027 aims to accelerate this transition, with a focus on innovative business entities and data-driven policy implementation.