By Han Xue and Gao Shiji, Institute for Resources and Environment Policies, DRC

Research Report No. 430, 2022 (Total 6944) 2022-12-28

Abstract: The market-based mechanism of green power is a policy tool to stimulate the development of renewable energy investment and development, and is widely used across the world. This article reviews the progress and current conditions of the market mechanism of green power in China. There are differences in the designed targets and relevant rules of the marketization trade mechanism of green power in different stages. Under the background of global low-carbon transition, the demand for green power is substantially increased as leading enterprises pursue their goals of green production and green supply chains. More and more small and medium-sized enterprises in China demand green power with the carbon emission peak and carbon neutrality goals. Against this background, the market mechanism of green power in China needs to be upgraded. Fake green power recognitions should be avoided to safeguard the authority of the mechanism. Different purchasing needs of enterprises should be met, and the basic goal of stimulating renewable energy investment should be realized.

Key words: low-carbon transition, power system reform, marketization, green power trade