Inner Mongolia trials spot electricity trading

The Inner Mongolia Electric Power Market, which to date has focused on medium and long term electricity trading, kicked off with spot transactions recently, according to local media reports.

The new development was in the wake of the June 26 launch by the Inner Mongolia electricity trading spot market of simulated trial operations.

Inner Mongolia is rich in coal resources, with large reserves of wind and solar energy, and it also boasts excellent conditions for the development of its power sector.

Officials added that it is a nationally recognized clean energy output base. In 2018, the region's installed capacity of electricity was 123 million kilowatts and its power generation capacity was 55 million kilowatt-hours, ranking it third in the country.

In addition, its annual outbound transmission of electricity was 165.3 billion kWh, ranking it first in the country, accounting for one seventh of national cross-province power transmissions.

According to local media reports, the region built the first power trading market in May 2010. In 2017, Western Mongolia was listed as the first pilot construction area to launch a spot market for electricity trading.

Officials said the creation of a spot power market is expected to improve the electricity trading market system and help find and stabilize long-term transaction prices in the power market.

It is also expected to play an active role in improving the efficiency of power system operations -- coordinating and resolving operational systems glitches, promoting new energy absorption, as well as guiding project planning and investments.