With the head of China's power watchdog ringing a gong with a big smile, China's second regional power market came into simulated operation in Shanghai on Tuesday, another big step to hasten the country's power marketization pace.

In the current stage, the market simulation operation will include market registration, monthly offer, transaction listing, information publicity and regulation programs. A total of 171 power generators, with a combined installed capacity of 43.388 million kw in 59 power plants, have participated in the simulationmarket.

Based on the east China power grid, the simulation market will cover the eastern commercial hub of Shanghai and four adjacent eastern provinces of Zhejiang, Jiangsu, Anhui and Fujian.

According to an early government circular stressing speeding upreform in the monopoly sectors including electricity, the reform will gradually untie market access limits and introduce competition.

Just four months ago, the nation's first power market simulation operation kicked off in the northeast power grid, where the provinces of Heilongjiang, Jilin and Liaoning have formed one of the country's biggest industrial bases.

"The power marketization reform is in line with the general request of building a sound socialism market economy. And only by such a reform, can a coordination between the power sector and other sectors of the society be realized," said Chai Songyue, director of the State Electronic Regulation Committee.

The first peak hour witnessed a 3.326 billion kwh turnover withthe first valley hour 1.177 billion kwh, indicating the simulation operation has started successfully.

Year and month based contracts are the main forms and, with theupdating of technical support, daily and real time contracts will be available, according to the operation staff.

Power companies from the provinces in the region will buy poweron the regional power transaction platform.

"Only by deepening the reform, can the power sector realize a comprehensive, coordinated and sustainable development," said Chai.

When addressing a ceremony marking the start of the northeast power simulation market in January, Chai said such a market is a sign that the country has taken a substantial step which will surely help promote power marketization reform in a comprehensive way.

Source: Xinhua