Trading of green electricity and Green Electricity Certificate(GEC) needs further stimulation
Wang Xu, Member of Institute of Energy Conservation and Environmental Protection, China Center for Information Industry Development
Although the scale of green electricity and GEC transactions has increased annually, the overall market dynamics remain subdued. Green electricity transactions account for a small share of total market volume, only 0.95% in 2023 and 0.4% in 2022. Currently, the supply of GEC exceeds the demand, and several key issues are hindering the growth of the market: the mismatch between green power supply and demand complicating inter-provincial trading; low acceptance of GEC internationally; and a lack of integration of GEC with the carbon market. These issues impede the market’s ability to satisfy businesses’ needs for green power and slow the progress of decarbonizing the supply chain. To address these challenges, it is imperative to reduce barriers to interprovincial trade in green power, promote international recognition of green certificates, and develop a synergistic mechanism linking power, certificates, and carbon markets.
