ABB is supplying China’s first energy management and power trading system as part of a government plan to create competitive regional power markets throughout the country. First out is the East China and Shanghai region, which generates 20 percent of China’s GDP and is home to the country’s biggest industrial base.
By Editorial services
The recent government decision to create regional power markets throughout China is an important step in its plan to liberalize the energy sector.
The creation of markets in which power plants and power generation companies have to compete with one another – rather than receive a guaranteed tariff from the government, as is currently the case – will improve efficiency and reduce the price of electricity.
If successful, the project – currently classed as a pilot – will lead to the creation of power markets in other parts of the country.
Economic powerhouse
The region chosen for China’s first power trading system is the country’s economic powerhouse of Shanghai and neighboring provinces – Jiangsu, Zhejiang, Anhui and Fujian – which come within the East China Power Grid and supply a population of some 190 million as well as the country’s biggest industrial base.
East China Electrical Power Group Corporation (ECEPGC), which operates the East China Power Grid, said:
“ABB was selected over other bidders due to their superior technology and delivery record for similar systems to the largest power networks and wholesale power markets worldwide.”
World leader
ABB has supplied trading systems to energy markets and power exchanges all over the world including Australia, Canada, Singapore, South Africa, South Korea, the U.K., California and New York.