Market-based drivers key to energy success

Focus on spurring independent ops in monopolistic sectors; reforms boost competition

Market-oriented reforms are set to define major directions of the energy sector's development in the coming years, said experts, highlighting content discussed at the recently concluded third plenary session of the 20th Central Committee of the Communist Party of China.

Experts said the third plenary session reiterated the significant role of the market in driving the development of new energy, industrial decarbonization, ensuring stable energy supply and establishing a new energy system.

Specifically, it emphasized advancing independent operations in monopolistic sections and market-oriented reforms in competitive areas of the energy sector, and refining mechanisms for private enterprises to participate in national projects effectively. It advocated for reforms in pricing across the water, energy and transportation sectors, optimizing tiered pricing systems for residential water use, electricity and gas consumption, as well as enhancing refined fuel pricing mechanisms.