China Takes Steps to Revise Renewable Energy Pricing System for Grid Connection
On February 9, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) jointly issued the Notice on Deepening the Market-Based Pricing Reform for Renewable Energy Grid Connection and Promoting High-Quality Development in Renewable Energy (NDRC Price [2025] No. 136). By the end of 2024, China’s renewable energy generation capacity is expected to reach approximately 1.41 billion kW, accounting for more than 40% of the country’s total electricity generation capacity—surpassing coal power capacity. However, as renewable energy continues to grow, the existing fixed pricing system for grid connection has failed to adequately reflect market supply and demand. Additionally, it has not fairly allocated the responsibilities for regulating the electricity system, leading to increasing challenges. These issues highlight the urgent need for deeper market-based pricing reforms to better utilize market mechanisms and promote the high-qual...