As spot trading spreads and renewable capacity surges, China’s move toward market-based electricity pricing is bringing sharper price swings, higher balancing costs and new strains for power retailers, generators and industrial users
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China’s long-running efforts to transform electricity from a state-managed input into a market-priced commodity is entering a more disruptive stage. As spot trading expands, price swings are becoming more immediate, more visible and more consequential — exposing industrial users, power retailers and renewable developers to risks that administrative pricing has long concealed.
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