China's State Council issued the "15th Five" Carbon Peak Action Plan, directing
deeper marketization of power tariffs and implementation of a renewable
sustainable development price-settlement mechanism and a nearby-consumption
pricing mechanism for renewables. For projects whose main function is
transmitting clean energy or grid interconnection, authorities will explore
two-part tariffs or single-capacity tariffs and promote remote
desert/Gobi/barren-land renewable bases to participate in market trading as
unified entities. The plan calls for refining generation-side capacity pricing
and orderly establishment of reliable capacity compensation for generators. It
mandates retail price mechanisms that reflect time-of-use value differentials,
exploration of demand-response pricing that reflects flexibility to unlock
user-side adjustment, and accelerated heating metering reform and rollout of
metered heating charges.
