[Policy Update] NDRC and NEA Issue "Guiding Opinions on Promoting High-Quality Development of the Power Grid"

📰 News Highlight

The National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) officially released the "Guiding Opinions on Promoting High-Quality Development of the Power Grid". The policy aims to build a modern, "integrated main-distribution-micro" grid platform by 2030. This initiative is designed to support the massive integration of renewable energy, ensure national energy security, and facilitate the construction of a unified national electricity market.

⚙️ Core Components

1.       Integrated Grid Hierarchy: Coordinated development of the main grid, distribution grid, and microgrids; by 2030, West–East power transmission >420 GW, inter-provincial support +40 GW.

2.       Renewable Integration: Renewables ≈30% of total generation; grid to accommodate 900 GW distributed energy and 40M+ EV chargers.

3.       Digital & AI Grid: Smart, flexible grid enabled by AI; source–grid–load–storage coordination, virtual power plants, and active two-way distribution networks.

💡 Key Takeaways

1.       From Hardware to Digital Platform: The grid evolves into a smart energy hub, with investment shifting from physical assets to software, sensors, AI, and intelligent controls.

2.       Decentralized Architecture: Smart microgrids become a core complement to the main grid, driving growth in behind-the-meter solutions, industrial solar+storage, and local energy management.

3.       Market-Driven Resilience: Grid upgrades align with the unified national power market; standardized interfaces and inter-provincial links enable green power trading and lower decarbonization costs.

[Market Update] China’s National Carbon Market Demonstrates Stable Growth and Expansion in 2025

📰 News Highlight

The Ministry of Ecology and Environment announced that China's national carbon market maintained stable and orderly operations throughout 2025, with a significant boost in market vitality. The mandatory Carbon Emissions Trading Reform (ETS) saw high compliance rates among key emitters, while the Voluntary Greenhouse Gas Emissions Reduction (CCER) market experienced rapid expansion.

💡 Key Takeaways

1.       Multi-Sector ETS Expansion: Inclusion of steel, cement, and aluminum marks a shift to economy-wide carbon regulation, reducing carbon leakage and aligning with mechanisms like the EU CBAM.

2.       Compliance–Voluntary Market Synergy: Expansion of the CCER market adds flexibility, enabling offsets across sectors and lowering decarbonization costs via nature-based and tech-based solutions.

3.       Digitalization & Market Integrity: Single-directional bidding and 6,106 registered accounts signal a more transparent, professional, and mature carbon market.

[Carbon Market]

During January 5 – January 9, the total transaction volume of Carbon Emission Allowances (CEA) in Chinese National Carbon Market reached 4,688,068 tons, with a total transaction value of USD 50,414,406.65 . The highest price was USD 11.39/ton, and the lowest price was USD 10.36/ton. For bulk agreement transactions, the volume was 4,153,031 tons, with a transaction value of USD 44,502,137.29.