China Sets Pricing Rule for Power Stabilising Services

  • China’s state planner is set to refine the pricing mechanisms for services essential to stabilising power supply.
  • China’s NDRC said it would focus on optimising pricing mechanisms for standby capacity, frequency modulation and peak shaving.

China’s state planner is set to refine the pricing mechanisms for services essential to stabilising power supply in markets dependent on wind and solar power. This is a fresh step toward creating a national electricity market by 2030.

The National Development and Reform Council (NDRC) in the notice today, said it would focus on optimising pricing mechanisms for standby capacity, frequency regulation and peak shaving. These are ancillary services essential to maintaining a reliable electricity supply.

Also, the peak shaving market allows power companies to buy power from quick-ramping sources, such as energy storage and flexible coal plants, to help them meet spikes in demand. The frequency regulation helps maintain average frequency on the grid, a function that battery storage systems and generators such as coal- and gas-fired plants can perform.

The ancillary services rule is among a series of essential documents setting out the rules for a national electricity market by 2025, with the market’s start targeted for 2030.

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