Oxford Energy Podcast – China’s power market reforms in an age of insecurity
In 2021, China experienced several episodes of power shortages and outages, heightening already existing concerns about energy security. In response, the government instituted a rapid succession of market reforms and other regulatory changes, which have pushed the majority of power users into the power market and also allowed for a wider range of electricity prices. These reforms are likely to carry forward as China plans to have a national power market system fully in place by 2030. But in the short-term, the very heavy focus on energy security has also led to another rush by provinces and state-owned power companies to build new coal plants to meet peak, much of which is arguably uneconomic given that investments in clean energy, storage, efficiency, and flexibility could likely deliver the same benefits at lower cost. In this podcast, David Ledesma discusses these topics and other aspects of ongoing power market changes in China with Yan Qin and Anders Hove.