NDRC, NEA approve in principle southern regional power market's formal operation

BEIJING, Oct 14 — The general office of China's National Development and Reform Commission (NDRC) and a department of the National Energy Administration (NEA) agreed in principle to let the Southern regional power market enter formal operation, according to a reply letter dated Oct 14.

The letter, No. 715 of 2026, is addressed to the NEA's Southern regulatory bureau and China Southern Power Grid Co. It asks them to expand the scope and scale of market trading and to have all power users except guaranteed users trade directly in the market. It also calls for market mechanisms suited to the operating characteristics of new energy and for a high rate of signing and performing medium- and long-term contracts to secure power supply.

The Southern regulatory bureau is to work with other NEA branch offices to strengthen supervision of wholesale trading. It is also to work with local government departments to regulate the retail power market and report major problems to the NDRC and NEA in a timely manner, the letter said.