Grid connection and Electricity Market Reform under the Background of New Energy: A Case Study Based on Guangdong Province

DOI: https://doi.org/10.62517/jiem.202603105

Author(s)

Xu Zhang

Affiliation(s)

International Business School, Brandeis University, Waltham, MA 02453, America *Corresponding Author

Abstract

Against the backdrop of China's "dual carbon" goals and structural economic transformation, the rapid growth of the renewable energy sector has posed new challenges to large-scale grid integration and market-oriented reforms. Using Guangdong Province as a case study, this research applies institutional economics, structural transformation theory, and comparative case analysis to examine the interaction between power market reform and renewable energy integration. The findings indicate that systemic barriers such as information asymmetry, state-owned enterprise monopolies, and local protectionism continue to constrain resource allocation efficiency and innovation incentives in China's electricity market. By comparing Germany's energy transition experience, the study highlights the importance of distributed generation, cross-regional power transmission, and spot market development, while proposing reform pathways tailored to China's national context. Policy recommendations include promoting the separation of grid enterprises' main and auxiliary businesses, accelerating the establishment of spot and ancillary service markets, enhancing cross-regional market coordination, and scaling up energy storage and green finance. This study contributes to the theoretical understanding of institutional reform under green transition and provides practical guidance for China's electricity market reforms.

Keywords

Renewable Energy Integration; Electricity Market Reform; Guangdong Case; Institutional Economics; Green Transition

References

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