Asia electricity markets

Abstract Electric power is an important basic industry for the country’s economy and social development. Throughout the process of electric power reform around the world, each country is gradually establishing electricity markets in line with the national conditions. The experience of various countries shows that the purpose of establishing the electricity markets is to introduce a competitive mechanism, increase the efficiency of electricity generation, transmission, and distribution, electricity sales and other links, and reduce cost, so as to reduce the electricity price, improve the reliability of electricity supply, and improve the quality of electric power customer service. The internal power of sustainable development is formed by using the market to optimize the rational allocation of power resources. As the fastest-growing electricity market in the world, China has a large number of investment projects, which contain huge development prospects. With the reform of electric power systems, more and more electric power enterprise operators have realized the importance of financial markets. Utilizing financial markets can promote the reform of electric power industry and advance the marketization process of electric power industry. This chapter mainly introduces China’s electricity market, in three sections. The first section describes the market-oriented reform of China electric power. It analyzes the characteristics of market-oriented reform of China’s electric power, and advances the market-oriented reform of China’s electric power according to the domestic political and economic environment and the level of electric power development. Specifically, the first section reviews the reform process of China’s electric power industry. Then it expounds the market-oriented reform program of China’s electric power. Finally, the current situation of the market-oriented reform of China’s electric power, the situation of electricity supply and demand, and the reform of electricity price system are analyzed. The second section deals with the classification of China’s electricity market, introducing the electricity spot market and financial market in detail. In particular, this section emphasizes that the sound electricity market not only needs the electricity spot market, but also needs the electricity financial market. It reveals that the electricity financial market is the inevitable outcome of the development of the electricity spot market. And the electricity financial market can provide the risk management tools for the market traders, which is advantageous to the stability of the electricity market. It is pointed out that market-oriented reform of China’s electric power plays an important role to explore the development of electricity futures trading and the establishment of electricity derivatives market. The third section is about the development of China’s power grid, including the overall situation of the power grid, major transmission lines and ultrahigh-voltage lines, smart grid and energy Internet construction, and the prospect of power grid development. This chapter also makes the corresponding analysis about the electricity market in India and Philippines.