Work Plan Released for Building Green Power and Green Certificate Market in Southern Region

A work plan has been recently released to improve the trading and incentive mechanisms for green power and green certificate in power market in the southern region, further tap into the potential of green power consumption and expand the inclusion of various entities so as to provide crucial support for achieving carbon peaking and carbon neutrality goals.

The Work Plan for Building Green Power and Green Certificate Market in the Southern Region (the Plan) has been recently unveiled to improve the trading and incentive mechanisms for green power and green certificate in power market in the southern region, further tap into the potential of green power consumption and expand the inclusion of various entities so as to provide crucial support for achieving carbon peaking and carbon neutrality goals.

The Plan outlines 15 measures designed to optimize the participation of entities in green power trading, refine the green power pricing mechanism, and prioritize the role of green power in trading organization, implementation and settlement processes through the improved rules and mechanisms. Additionally, it aims to actively facilitate the inclusion of all grid-parity wind power and photovoltaic project in green power trading and steadily promote the direct involvement of wind power and photovoltaic projects subsidized by the Central People’s Government in green power trading or their participation through power grid enterprises to promote continuous market growth.

Since the launch of the national green power trading pilot program in September 2021, a unified “green power and green certificate” trading market system has been established in the southern region. From September 2021 onwards, the cumulative trading volume of green power in the southern region (including Guangdong, Guangxi, Yunnan, Guizhou, and Hainan Provinces) has reached 81.8 billion kilowatt-hours, while the cumulative trading volume of green certificates amounts to approximately 210 million kilowatt-hours. It is expected that by the end of this year, the cumulative trading volume of green power and green certificates in the southern region will exceed 10 billion kilowatt-hours.