Distributed power will be able to participate in Jiangsu’s power ancillary service market

Distributed power will be able to participate in Jiangsu’s power ancillary service market

455

On September 11, Jiangsu Energy Administration issued a draft of Rules and Regulations of Jiangsu Power Users’ Participation in the Peak Regulation Ancillary Service Market.

In the new regulation, BTM (behind-the-meter) power users will be able to integrate their own distributed energy, captive power plants, EV charging stations, and energy storage systems to provide load and peak regulation services as a virtual power plant. 

The eligible market players include:

  1. Power users and power brokers in the mid-long term (D-1, weekly, monthly, yearly, and multiple years) power market
  2. Power grid companies
  3. Market operators (power dispatch agencies and Jiangsu Power Trade Center) 

Monthly and D-1 are the two major trading periods of load and peak regulation services. Monthly trading (mid-long term) is usually organized in the previous month, while D-1 (short term) trading is organized one day ahead of the actual delivery. Market players will participate in a price bidding organized by the market operator under the price ceiling set by the government.

Jiangsu is one of a few provinces ahead of the curve in liberating electricity prices. It is one of the 10 provinces granted the first batch of demo sites for distributed power market trading. The distributed power projects in these demo sites can sign a corporate PPA directly with their “neighbors”, as an alternative to self-consumption or selling to the grid. The marketization and free flow of distributed power is considered an emerging opportunity in the energy business in China. If you are interested in knowing more about the renewables and emerging energy market in China, please feel free to contact us. (Jiangsu Energy Administration)