The market began formal operations on 24 October, marking a major milestone in China’s efforts to establish a unified national electricity market, according to China Central Television’s financial news service.
By Sam Ovie
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Published on October 24, 2026
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3 min read
China has officially launched its Southern Regional Electricity Market, connecting five provincial-level regions in what state media describe as the world’s largest and busiest electricity trading market.
The market began formal operations on 24 October, marking a major milestone in China’s efforts to establish a unified national electricity market, according to China Central Television’s financial news service.
The new market connects Guangdong, Guangxi, Yunnan, Guizhou and Hainan, allowing electricity generated from coal, hydropower, nuclear energy, wind and solar power to be bought and sold under a common set of market rules.
More than 290,000 market participants have registered across the five regions, representing approximately one-quarter of the national total. These participants will conduct regular electricity transactions within the same regional market.
The launch marks a significant step towards integrating China’s electricity markets and improving coordination between power producers and consumers across provincial boundaries.
According to reports, China aims to establish the foundations of a unified national electricity market system by 2030.
Southern Market Records Nearly 900 Billion kWh in Transactions
Data reported by Xinhua News Agency show that the Southern Regional Electricity Market recorded nearly 900 billion kilowatt-hours (kWh) in cumulative electricity transactions between January and September this year.
The volume accounted for more than 70 per cent of total electricity sales across the regional grid.
Renewable energy supplied 40 per cent of newly added electricity sales during the period, while the market recorded a maximum daily cleared trading volume of more than four billion kWh.
The number of registered market participants also exceeded 290,000.
The region maintained a renewable energy utilisation rate above 95 per cent, supporting renewable energy in becoming the largest source of electricity generation across the grid.
The figures highlight the growing role of renewable energy in the region’s electricity supply and the importance of coordinated trading in managing power resources across different provinces.
Cross-Regional Trading Connects Major Energy Sources to Demand Centres
During its trial operation, the Southern Regional Electricity Market also established connections with areas served by the State Grid Corporation of China.
Cross-regional electricity transactions reached 19.4 billion kWh during the trial period, according to reports.
The arrangements enabled hydropower from south-western China and wind and solar power from the north-western region to support major electricity-consuming areas, including the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta.
The system allows electricity resources generated in areas with abundant renewable energy to be transferred to regions with higher demand, improving coordination between energy production and consumption.
The formal launch of the Southern Regional Electricity Market represents further progress in China’s plans to integrate its electricity trading systems, expand cross-regional power exchanges and build a unified national electricity market by 2030.
