Hydro-dominated Power Markets in Southwest China: Characteristics and Challenges

Hydro-dominated power markets have been formed in the southwest China where almost 70% of the China’s hydropower is concentrated. In 2015, China developed a new round of power market reform with the core goal of promoting the absorption of green and clean energy resources. This marketization provides new opportunities for hydropower absorption, at the same time brings new challenges. This paper deeply analyses the characteristics of hydro-dominated power markets in the southwest China, and further discusses the main challenges faced by these markets in the light of the reality of China’s electricity reformation and the common problems of general power markets. The analysis results provide references for market management and hydropower operation for hydro-dominated power markets.