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China's green power trading gathers momentum
By Lyu Shaogang, People's Daily
Photo shows a solar farm in Gaoyao district, Zhaoqing, south China's Guangdong province. (Photo by Wang Meiyan/People's Daily Online)
Green power refers to electricity generated from renewable energy sources such as wind, solar, and hydropower. A "green electricity certificate (GEC)" serves as the official validation of this renewable electricity and it is the only recognized credential in China that certifies the production and consumption of green power.
Issued exclusively by China's National Energy Administration, GECs can be obtained either through the purchase of green power or via independent trading. Each certificate is unique and, for now, can only be traded once. It includes details such as a transaction ID, buyer information, and quantity purchased. Users may scan a QR code to trace the certificate's origin to its corresponding renewable energy project.
Each certificate represents 1,000 kWh of renewable electricity. In other words, trading a single certificate means that 1,000 kWh of green power has either been integrated into the grid or consumed.
In recent years, with the continuous expansion of China's green power production capacity, driving a sharp rise in both green power consumption and GEC transactions. In March of this year alone, the National Energy Administration issued 174 million GECs -- a 9.39-fold increase year on year. From January to March, 200 million certificates were traded nationwide.
By logging onto a "southern China green power trading system," users can easily browse a wide variety of certificate products at the click of a button. Options include wind, solar, and biomass, among others, with transparent details on prices, inventory, and production dates. Once a user selects a project and makes a payment, the entire transaction can be completed within minutes.
Why are companies willing to buy GECs?
"Export-oriented firms, energy-intensive industries, multinational corporations, and large central or state-owned enterprises all have strong demand for green energy," explained Huang Mei, deputy general manager of the market and customer service department at China Southern Power Grid's Shenzhen branch. By purchasing GECs, companies can demonstrate their green power consumption, reduce carbon emissions, and build a environmentally responsible brand image.
"In 2024, we purchased around 5,000 GECs, fully offseting our annual electricity consumption of 5 million kWh," said Guo Zhaocheng, deputy general manager of Shenzhen SDG Information Co., Ltd. in Shenzhen, south China's Guangdong province, a company deeply engaged in data center construction and other power-intensive businesses. It began purchasing Green Certificates in June 2024.
"Participating in green electricity consumption and fulfilling our low-carbon responsibilities gives us a competitive edge in project bidding," Guo added.
"Purchasing GECs doesn't mean using green electricity directly. Rather, it means acquiring the environmental attribute of green power, achieving the effect of renewable energy usage," Huang further explained. GEC trading breaks through physical limitations of power transmission, serving as a "bridge" between the production and consumption of green energy, unlocking new development opportunities.
"Downstream international clients prioritize green energy utilization. In 2024, 40 percent of our electricity consumption—more than 19.08 million kWh—came from green power," said Zhu Huawei, procurement manager at Shenzhen Zhenghe Zhongxin Plastic Products Co., Ltd.
This year, the company has further expanded its production capacity, and related contracts specify that 85 percent of its actual power usage must be green electricity.
"Increasing green energy consumption enables us to secure more orders, enhance our brand value, strengthen global competitiveness, and promote sustainable low-carbon development," Zhu said. This mindset is increasingly shared among many companies.
In 2024, green power transactions in Guangdong's Guangzhou and Shenzhen reached 1.728 billion kWh, up 189 percent year on year, with 717 participating enterprises, an increase of 1,075 percent.
That same year, Shenzhen's GEC transactions exceeded 17 million, representing 17 billion kWh of green electricity, and the numbers continue to grow steadily. Green power and GEC are becoming increasingly popular, and the trading market continues to heat up.
The boom in green power and certificate trading is driven by enthusiasm from both supply and demand sides.
"Building renewable energy projects requires high upfront investment. The extra revenue from GEC sales gives us more incentive and confidence to keep expanding our R&D investment," said Wang Tuo, marketing manager of CGN New Energy Holdings Co., Ltd., a Guangdong-based new energy investment company.
Take the company's 1-million-kilowatt offshore wind power project at Huizhou Port as an example: it generates around 3 billion kWh of clean electricity for Guangdong annually, reducing standard coal consumption by 1 million tons, and cutting carbon dioxide emissions by about 2.35 million tons—equivalent to planting 6,000 hectares of trees.
By monetizing the environmental value of renewable energy through GEC trading, the market is sending positive signals for building a new energy system and boosting green power supply. In 2024, Shenzhen's grid added 288,600 kilowatts of newly connected renewable energy capacity, a 51 percent increase year on year, and achieved full utilization of 3.123 billion kWh of renewable electricity which connected into the national grid.
Issued exclusively by China's National Energy Administration, GECs can be obtained either through the purchase of green power or via independent trading. Each certificate is unique and, for now, can only be traded once. It includes details such as a transaction ID, buyer information, and quantity purchased. Users may scan a QR code to trace the certificate's origin to its corresponding renewable energy project.
Each certificate represents 1,000 kWh of renewable electricity. In other words, trading a single certificate means that 1,000 kWh of green power has either been integrated into the grid or consumed.
In recent years, with the continuous expansion of China's green power production capacity, driving a sharp rise in both green power consumption and GEC transactions. In March of this year alone, the National Energy Administration issued 174 million GECs -- a 9.39-fold increase year on year. From January to March, 200 million certificates were traded nationwide.
By logging onto a "southern China green power trading system," users can easily browse a wide variety of certificate products at the click of a button. Options include wind, solar, and biomass, among others, with transparent details on prices, inventory, and production dates. Once a user selects a project and makes a payment, the entire transaction can be completed within minutes.
Why are companies willing to buy GECs?
"Export-oriented firms, energy-intensive industries, multinational corporations, and large central or state-owned enterprises all have strong demand for green energy," explained Huang Mei, deputy general manager of the market and customer service department at China Southern Power Grid's Shenzhen branch. By purchasing GECs, companies can demonstrate their green power consumption, reduce carbon emissions, and build a environmentally responsible brand image.
"In 2024, we purchased around 5,000 GECs, fully offseting our annual electricity consumption of 5 million kWh," said Guo Zhaocheng, deputy general manager of Shenzhen SDG Information Co., Ltd. in Shenzhen, south China's Guangdong province, a company deeply engaged in data center construction and other power-intensive businesses. It began purchasing Green Certificates in June 2024.
"Participating in green electricity consumption and fulfilling our low-carbon responsibilities gives us a competitive edge in project bidding," Guo added.
"Purchasing GECs doesn't mean using green electricity directly. Rather, it means acquiring the environmental attribute of green power, achieving the effect of renewable energy usage," Huang further explained. GEC trading breaks through physical limitations of power transmission, serving as a "bridge" between the production and consumption of green energy, unlocking new development opportunities.
"Downstream international clients prioritize green energy utilization. In 2024, 40 percent of our electricity consumption—more than 19.08 million kWh—came from green power," said Zhu Huawei, procurement manager at Shenzhen Zhenghe Zhongxin Plastic Products Co., Ltd.
This year, the company has further expanded its production capacity, and related contracts specify that 85 percent of its actual power usage must be green electricity.
"Increasing green energy consumption enables us to secure more orders, enhance our brand value, strengthen global competitiveness, and promote sustainable low-carbon development," Zhu said. This mindset is increasingly shared among many companies.
In 2024, green power transactions in Guangdong's Guangzhou and Shenzhen reached 1.728 billion kWh, up 189 percent year on year, with 717 participating enterprises, an increase of 1,075 percent.
That same year, Shenzhen's GEC transactions exceeded 17 million, representing 17 billion kWh of green electricity, and the numbers continue to grow steadily. Green power and GEC are becoming increasingly popular, and the trading market continues to heat up.
The boom in green power and certificate trading is driven by enthusiasm from both supply and demand sides.
"Building renewable energy projects requires high upfront investment. The extra revenue from GEC sales gives us more incentive and confidence to keep expanding our R&D investment," said Wang Tuo, marketing manager of CGN New Energy Holdings Co., Ltd., a Guangdong-based new energy investment company.
Take the company's 1-million-kilowatt offshore wind power project at Huizhou Port as an example: it generates around 3 billion kWh of clean electricity for Guangdong annually, reducing standard coal consumption by 1 million tons, and cutting carbon dioxide emissions by about 2.35 million tons—equivalent to planting 6,000 hectares of trees.
By monetizing the environmental value of renewable energy through GEC trading, the market is sending positive signals for building a new energy system and boosting green power supply. In 2024, Shenzhen's grid added 288,600 kilowatts of newly connected renewable energy capacity, a 51 percent increase year on year, and achieved full utilization of 3.123 billion kWh of renewable electricity which connected into the national grid.
