Guangdong’s proposed electricity market rules represent an important step forward. Over time, the policies will help Guangdong and the China Southern Grid (CSG) region move toward a more efficient, lower-emissions, lower-cost, and more reliable power system. It will also help lead the way for corresponding efforts in other parts of China.

Based on our understanding of China’s power sector and our experience in the United States, Europe, and other parts of the world, Max Dupuy and RAP’s China team offer observations and recommendations for strengthening the proposed market rules. These comments focus on the document titled Basic Rules for the Operation of Guangdong Power Market (Consultation draft) (广东电力市场运营基本规则(征求意见稿)). The key opportunities include developing an independent market monitoring function, establishing the conditions for a truly regional market, and ensuring that distributed energy resources are allowed access to a level playing field for the services they provide.