China has introduced new regulations aimed at unlocking the flexibility of its power system through a more market-oriented approach to ancillary services.
Source: China News Service
China has introduced new regulations aimed at unlocking the flexibility of its power system through a more market-oriented approach to ancillary services. The Basic Rules for the Electricity Ancillary Services Market, jointly issued by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA), outline a framework to strengthen system regulation as the country’s reliance on renewable energy continues to grow.
Ancillary services—functions that support grid reliability beyond basic electricity generation, transmission, and consumption—are becoming increasingly critical. With renewables accounting for a larger share of installed capacity, the grid faces mounting pressure to maintain stability. The new rules seek to address this by expanding the ancillary services market and encouraging broader participation.
Spanning 12 chapters and 67 articles, the rules define the roles of various market players, including traditional generators, power retailers, end-users, and emerging energy operators. Notably, they formally recognize the participation of energy storage providers, virtual power plants, smart microgrids, and vehicle-to-grid (V2G) operators, marking a shift toward a more inclusive and diversified energy services ecosystem.
The rules also introduce a clearer cost allocation mechanism for ancillary services, guided by the principle of “those who benefit, pay.” In regions where the electricity spot market operates continuously, costs for services such as frequency regulation and reserve capacity will be shared by power users and generators whose electricity is not traded on the spot market.
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