Beijing, August 29 (Xinhua) — The white paper "China's Energy Transition," released by China's State Council Information Office on August 29, shows that private enterprises have become the main force in China's new energy industry: private enterprises account for about 60% of China's complete wind turbine manufacturing enterprises, and the vast majority of photovoltaic equipment manufacturing enterprises are private enterprises.

　　The white paper emphasizes that China is building a fair, open and effectively competitive energy market. China will deepen energy market-oriented reform, accelerate the building of an effectively competitive market structure and market system, improve the mechanism under which energy prices are mainly determined by the market, strengthen the building of a unified large market, remove bottlenecks in the energy market, promote efficient and smooth market operation, and create a stable, fair, transparent and predictable environment for all types of market entities.

　　In terms of continuously deepening energy market-oriented reform, the white paper points out that the situation in which power grids exclusively purchase and sell electricity has been basically broken, market competition has been fully introduced into power generation and electricity sales, and social capital investment has been introduced into power distribution. Private enterprises have become the main force in the new energy industry: private enterprises account for about 60% of China's complete wind turbine manufacturing enterprises, and the vast majority of photovoltaic equipment manufacturing enterprises are private enterprises.

　　China is also building a unified national energy market. According to the white paper, China is accelerating the development of a unified national electricity market system, with efficient coordination among provincial, regional and inter-provincial trading and organic linkage among medium- and long-term, spot and ancillary service trading. Power trading centers, oil and gas trading centers and coal trading centers have been established to build open, transparent and fully functional energy trading platforms. The share of market-based electricity trading in total electricity consumption rose from 17% in 2016 to 61.4% in 2023. In 2023, market-based trading of wind and photovoltaic power accounted for 47% of total wind and photovoltaic power generation, effectively promoting the optimal allocation of power resources and the efficient use of renewable energy.

　　In terms of improving the energy price formation mechanism, the white paper points out that China has deepened market-oriented reform of energy prices, orderly promoted the participation of various types of power sources in the market, continuously improved the policy system for on-grid tariffs for new energy, and fully liberalized electricity prices for industrial and commercial sales. A capacity price mechanism for coal-fired power has been established to promote the transformation of coal-fired power from a baseload power source to a supporting and regulating power source.