BUSINESS

China’s First Regional Power Market Begins Full Operation

Published: Oct. 26, 2026 11:21 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

The southern regional power market covers Guangdong, Guangxi, Yunnan, Guizhou and Hainan. Photo: VCG

China’s first regional electricity market began full operation Saturday, allowing power producers, retailers and large users across five southern provinces and regions to trade under a single market framework as Beijing pushes toward a nationwide power market.

The southern regional power market covers Guangdong, Guangxi, Yunnan, Guizhou and Hainan, spanning 63 cities and more than 290,000 registered market participants, according to China Southern Power Grid Co. Ltd.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and Bloomberg - for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China's first regional electricity market launched full operation, covering five southern provinces (Guangdong, Guangxi, Yunnan, Guizhou, Hainan) with over 290,000 participants.
From January to September, ~900 billion kWh was traded, accounting for >70% of southern grid electricity sales.
This is the first cross-provincial formal spot market; Beijing targets a unified national market by 2030.

AI generated, for reference only

Who’s Who

China Southern Power Grid Co., Ltd.: China Southern Power Grid Co., Ltd. operates China's first fully operational regional electricity market, covering Guangdong, Guangxi, Yunnan, Guizhou and Hainan across 63 cities with over 290,000 registered participants. It trades roughly 900 billion kWh in nine months. The company plans to expand energy storage and flexible demand into ancillary-services trading.

AI generated, for reference only

What Happened When

2017：: The southern spot market began as a pilot in Guangdong.

2018：: The southern spot market started trial operations.

2022：: The broader five-province regional market entered trial operation.

June 2025：: The broader five-province regional market moved to continuous settlement with power traded and settled under common rules.

February 2026：: A State Council document was issued, setting spot markets as a key price-setting mechanism for the electricity system.

From January through September 2026：: About 900 billion kilowatt-hours of electricity was traded through the southern market, accounting for more than 70% of electricity sold across the China southern power grid system.

Saturday (context: article publication, no specific date provided)：: China's first regional electricity market began full operation across five southern provinces and regions.

By 2027：: Beijing wants spot markets to be broadly in formal operation.

By 2030：: Beijing aims to establish a largely unified national electricity market with market-based transactions expected to account for about 70% of the country's electricity consumption.

AI generated, for reference only