On 14 May 2024, the NDRC published the Basic Rules for Power Market Operation. This marks the first revision of these rules in 19 years. The new market operation rules are a comprehensive package divided into eleven chapters and 45 articles, and define significant changes compared to the 2005 version. The new electricity market operation rules came into effect on 1 July 2024 and aim to improve various aspects of market design and operation.
The new rules outline the composition and responsibilities of electricity market actors, including market operators, power grid companies, participants such as generation companies, electricity users as well as new market entities like energy storage and virtual power plants operators or load aggregators.
The rules specify types and methods of power market transactions, including those for electricity itself, ancillary services, and capacity as a new category. In addition, the rules distinguish between long-term and spot market electricity transactions and set forth the principles for market-based provision of ancillary services and capacity transactions to ensure support during peak loads.
Regulatory measures for the operation of the power market are bolstered as well. By establishing stricter entry requirements and intensifying efforts to combat market manipulation, monopolistic practices, and unfair competition should be prevented and thereby ensure stable operation of the power market.
