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China has launched a green electricity exchange trading system "in a pilot format" to "guide society towards green energy consumption and accelerate the transition to low-carbon technologies."
The pilot scheme foresees that users seeking green energy will trade directly with energy companies producing wind and solar photovoltaic power.
Subsequently, other RES sectors will gradually be included in the scheme.
In June 2021, it became known that China was canceling subsidies for new large-scale, industrial and commercial distributed solar power plants, as well as onshore wind farms. At the same time, new renewable energy generation projects can voluntarily participate "in market transactions to form electricity prices in order to better reflect the environmental value of green energy."
The new trading system is designed to ensure the conclusion of such transactions in which those who wish can buy solar and wind power, paying also a "premium for environmental value".
China's new green energy trading system will be linked to the existing green certificate system. The National Renewable Energy Information Management Center will "issue and transfer certificates to electricity exchanges, which will then transfer them to buyers of renewable electricity."
Led by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA), the pilot project will be implemented on the power exchanges in Beijing and Guangzhou, coordinated by the country's two major grid operators, State Grid and China Southern Power Grid ( Southern Grid).
According to the publication "News of the electric power industry of China", at the start of the system, 259 market participants from 17 provinces took part in the trade. The volume of transactions in the State Grid was 6,898 GWh (6,440 GWh of solar and 458 of the wind), and the Southern Grid was 1,037 GWh. The premium was RMB 0.03-0.05 per kilowatt-hour.
German chemical giant BASF announced on Tuesday that its six plants in Shanghai, Jiangsu and Guangdong will be directly involved in renewable electricity trading.
By 2025, the company plans to purchase about 440,000 MWh of electricity from renewable sources and achieve zero emissions by 2050.
BASF will make the most of renewable energy sources at its Greater China manufacturing bases to meet the company's climate protection goals, while at the same time contributing more to China's climate goals, said Stephen Kotrade, President and Chairman of BASF Greater China.
China is the world leader in installed renewable energy and solar and wind power generation. In 2020, the total capacity of solar and wind power plants in China was 535 GW. According to forecasts, by 2030 it may exceed 1600 GW.