Abstract
In China, with the deepening of power reform and construction of the electricity spot market, urgent and realistic demands have been put forward for the construction of power financial trading market. In this paper, based on the background of power market construction and current power financial transaction practice, the significance of introducing power financial transaction is analysed and the path for construction of power financial transaction market in China is proposed.
Highlights
Background of power market construction inChinaIn 1998, China began to build a competitive power market on the power generation side
The contract adjustment transactions such as contract repurchase, transfer and replacement are in the medium and long-term power market environment in China, through the market size way to realize the compensated transfer and purchase of the contract power, which have been signed between the market participants
On the basis of continuously deepening the power market construction of our country medium and long-term and spot trading combination, we will carry out generation rights trading, contract repurchase and transfer transactions, Contract for Difference (CFD), green certificate transactions, etc. power financial transaction varieties, strengthen the construction of market rules and management systems, regulate the trading behaviour of all parties, cultivate market participants awareness, promote trade openness, standardization of contracts, legalization of management, and gradually improve the physical market foundation needed and microstructural conditions for the construction of power financial market to prepare for the establishment of a mature power finance market
Summary
In 1998, China began to build a competitive power market on the power generation side. With the continuous growth of market size trading power and the gradual improvement of various physical trading mechanisms, urgent and realistic demands have been put forward for the construction of electricity and finance trading market of China. It can be seen that with the launch of the spot market pilot, gradually introducing of power financial trading tools (for example, CFDs) is of great practical significance for exploring the power spot market model suitable for the national conditions, alleviating the pressure on balance of electric power and energy, gradually increasing the market size trading power, and deepening the construction of the power market. Due to better market liquidity and flexibility of the power finance market, it can achieve a wider range and more market participants to participate in the market, and to guide medium and long-term power system planning through price signals, which is of great significance for promoting the optimized allocation of nationwide resources
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