China is set to introduce significant reforms in its electricity sector, aiming to create a unified national electricity market by 2030. A key element of this initiative involves the use of blockchain technology to verify green energy claims, which is expected to enhance trust in renewable electricity sources and improve carbon accounting practices.
The State Council has laid out a comprehensive policy roadmap extending to 2035 that details how blockchain will play a pivotal role in tracking the production and consumption of green power. This includes the establishment of a national market for green certificates, which will serve as official proof of renewable energy generation.
Among the reforms are plans to enable full-chain certification of green electricity, incorporating advanced technologies such as blockchain to bolster traceability. The initiative also emphasizes enhanced monitoring of green certificate pricing and aims to expand both mandatory and voluntary green electricity consumption across the nation.
By integrating blockchain into carbon accounting, Chinese authorities hope to cultivate greater confidence in green electricity claims and explore avenues for the international recognition of its green certificates. This move is a part of a broader strategy to reform the electricity system, which includes a commitment to allow diverse power sources and eligible users to participate directly in the market.
By 2030, the goal is to ensure that market-based trading accounts for approximately 70% of the total electricity consumption, operating a fully functional nationwide spot electricity market. By 2035, the unified electricity market is expected to mature, facilitating seamless trading across provinces, with pricing reflective of various factors including energy costs, regulatory impacts, and environmental considerations.
The reforms also aim to dismantle regional restrictions and local protectionism, thereby enhancing the efficiency of electricity distribution on a national scale. Furthermore, the green electricity market is set to be refined through continuous adjustments aimed at increasing the use of renewable energy and aligning market trading with renewable planning.
To maintain grid reliability amid the growth of renewable sources, China is considering compensation for power sources that provide available capacity, including traditional coal plants and new energy storage systems. Innovations such as virtual power plants and smart microgrids will also be integrated into the electricity markets under defined technical and regulatory frameworks.
As part of this reformative approach, digital governance will be emphasized, with unified technical standards and connected trading platforms established nationwide. A national electricity market credit system will facilitate the tracking and sharing of credit information across different regions. Stricter oversight will be enforced to combat local market manipulation and ensure fair access to the market.
Overall, these reforms reflect China”s ambitions for energy security, economic growth, and a transition towards a greener energy landscape. By merging market reforms with blockchain technology for green verification, China aims to create a transparent and efficient system that could redefine electricity trading and verification practices in the world”s largest power system.
