China to Let Power Prices Turn Negative in Solar-Rich Province

(Bloomberg) — Power traders in eastern China’s Shandong province can now ask to be paid for taking electricity as the province’s growing rooftop solar capacity threatens to overwhelm the grid.

The province officially set the lowest price on its spot market below zero, according to a draft rule issued by the Shandong Development and Reform Commission. Negative prices that encourage generators to switch off are typically seen on more advanced electricity exchanges in the U.S., Germany and Australia and suggest another step in China’s slow march toward liberalizing its power sector.