The United States and China have been cooperating since 2016 under the Power Consumption, Demand and Competition Cooperation to identify solutions to advance key elements of China’s comprehensive market reforms to foster a competitive, transparent and sustainable electric power sector in China. Co-led by the U.S. Department of State’s Bureau of Energy Resources and China’s National Development and Reform Commission and the National Energy Administration, in coordination with their respective government agencies, the Cooperation’s activities are implemented by the Lawrence Berkeley National Laboratory’s China Energy Group with specialized assistance from U.S. power sector experts. The Cooperation’s policy recommendations report (“the Report”) addresses a suite of inter-related pilot approaches on three topics:
- Promoting electric power market competition and direct power trading in Guangdong: To help formulate market rules, policies, and oversight mechanisms supporting overall power sector improvement, while promoting incorporation of clean energy resources in the market.
- Increasing the local consumption and reducing curtailment of renewable energy in Jilin: To reduce provincial wind curtailment through measures focused on making the province’s electricity and heating sectors more flexible to accommodate wind generation.
- Enhancing demand response (DR) and promoting demand-side resources in Jiangsu and Shanghai: To develop an enabling policy framework and market mechanisms that encourage and expand DR participation for industrial, commercial, and residential customers and to design electricity markets that can elicit value from DR.