are better able to achieve the objectives of allocating international resources efficiently, making
the power market competitive, channelling
investment into new and low-carbon power
generation, meeting consumer demand, and
facilitating the use of new technologies.
The European Union published the New
Energy Market Design report in 2015, according
to which a new power market mechanism to
create the European Energy Union will be built.
It includes developing an international short- and
long-term power market capable of attracting
investment, perfecting a market mechanism
suitable for renewables, improving the transnational capacity mechanism and strengthening the
coordination between wholesale and retail markets. Regional cooperation will be strengthened,
an integrated power market will be built and the
energy supply security of the whole European
Union will be achieved.
To achieve more flexible and efficient power
supply and ensure power security, Germany
passed the Electricity Market Act in 2016 to help
build Electricity Market 2.0. The act focuses on
renewables. It strengthens the procedure for
adjusting the price signal, expands the balancing
market, encourages supply-side management,
and builds a fair power transmission tariff
mechanism and capacity standby mechanism.
Great Britain launched a new round of power
market-oriented reform focusing on low-carbon
development in 2014 by holding the first contract
for difference and capacity market auctions and
amending the relevant rules and trading mechanism. California improved its real-time market,
replacing the hour-ahead market with the 15-min
market, and launched the energy imbalance
market to adapt to the output of renewables.
7.3.2 Build Large Resource Application
Platforms by Expanding
the Market
To promote the development of renewables,
diversify energy supply and ensure energy security, transregional and transnational resource
allocation is urgently needed. The scope of the
power market has expanded again and again, as
with the Southwest Power Pool (SPP) in the USA.
Western Area Power Administration, Basin
Electric Power Cooperative and Heartland joined
the SPP in 2015, and power transaction volumes
between the USA and Canada increased. EU
member states have continued to strengthen
regional cooperation on energy. Latvia, Estonia
and Lithuania signed the Baltic Energy Market
Interconnection Plan in 2015. The five major
power exchanges in Europe signed an agreement
to develop a unified European transnational
intra-day trading platform, the purpose of which is
to optimise the intra-day transnational and transregional trading plan and promote an integrated
European power market. Sixteen grid operators in
Europe announced an integrated day-ahead market for grids in central and western Europe, and in
central and eastern Europe. Six countries in the
western Balkans signed a memorandum of
understanding on regional power market cooperation. A power market trading platform has started
to facilitate the integration of the power markets
and grids of countries in the Union for the
Mediterranean. The European Union and Turkey
strengthened their cooperation on energy market
integration and renewables development.
7.3.3 Pay Close Attention
to the Construction
of Energy Infrastructure
that Helps Create Large
Power Markets
With the expansion of the power market and the
large-scale development and use of clean energy,
many countries are investing in the development
or modernisation of transnational grids to support
wide power transactions and optimise resource
allocation:
• Grain Belt Express, a cross-state high-voltage
transmission project in the USA, was
approved by several states. The project,
costing $2 billion and 1,255 km in length,
aims to integrate and transmit the wind power
resources of Kansas;
• the European Union announced that transnational transmission capacity of each member
state will account for at least 10% of its
installed capacity by 2020, and 15% by 2030;
Special Report 4: China’s Energy System Revolution
499
the power market competitive, channelling
investment into new and low-carbon power
generation, meeting consumer demand, and
facilitating the use of new technologies.
The European Union published the New
Energy Market Design report in 2015, according
to which a new power market mechanism to
create the European Energy Union will be built.
It includes developing an international short- and
long-term power market capable of attracting
investment, perfecting a market mechanism
suitable for renewables, improving the transnational capacity mechanism and strengthening the
coordination between wholesale and retail markets. Regional cooperation will be strengthened,
an integrated power market will be built and the
energy supply security of the whole European
Union will be achieved.
To achieve more flexible and efficient power
supply and ensure power security, Germany
passed the Electricity Market Act in 2016 to help
build Electricity Market 2.0. The act focuses on
renewables. It strengthens the procedure for
adjusting the price signal, expands the balancing
market, encourages supply-side management,
and builds a fair power transmission tariff
mechanism and capacity standby mechanism.
Great Britain launched a new round of power
market-oriented reform focusing on low-carbon
development in 2014 by holding the first contract
for difference and capacity market auctions and
amending the relevant rules and trading mechanism. California improved its real-time market,
replacing the hour-ahead market with the 15-min
market, and launched the energy imbalance
market to adapt to the output of renewables.
7.3.2 Build Large Resource Application
Platforms by Expanding
the Market
To promote the development of renewables,
diversify energy supply and ensure energy security, transregional and transnational resource
allocation is urgently needed. The scope of the
power market has expanded again and again, as
with the Southwest Power Pool (SPP) in the USA.
Western Area Power Administration, Basin
Electric Power Cooperative and Heartland joined
the SPP in 2015, and power transaction volumes
between the USA and Canada increased. EU
member states have continued to strengthen
regional cooperation on energy. Latvia, Estonia
and Lithuania signed the Baltic Energy Market
Interconnection Plan in 2015. The five major
power exchanges in Europe signed an agreement
to develop a unified European transnational
intra-day trading platform, the purpose of which is
to optimise the intra-day transnational and transregional trading plan and promote an integrated
European power market. Sixteen grid operators in
Europe announced an integrated day-ahead market for grids in central and western Europe, and in
central and eastern Europe. Six countries in the
western Balkans signed a memorandum of
understanding on regional power market cooperation. A power market trading platform has started
to facilitate the integration of the power markets
and grids of countries in the Union for the
Mediterranean. The European Union and Turkey
strengthened their cooperation on energy market
integration and renewables development.
7.3.3 Pay Close Attention
to the Construction
of Energy Infrastructure
that Helps Create Large
Power Markets
With the expansion of the power market and the
large-scale development and use of clean energy,
many countries are investing in the development
or modernisation of transnational grids to support
wide power transactions and optimise resource
allocation:
• Grain Belt Express, a cross-state high-voltage
transmission project in the USA, was
approved by several states. The project,
costing $2 billion and 1,255 km in length,
aims to integrate and transmit the wind power
resources of Kansas;
• the European Union announced that transnational transmission capacity of each member
state will account for at least 10% of its
installed capacity by 2020, and 15% by 2030;
Special Report 4: China’s Energy System Revolution
499