Power Market Credit Management System: International Experience and Framework Design for China

Abstract

China is currently building its own power market consisting of a long-term market and spot market. With more market participants and more trading varieties, a power market credit management system is urgently needed to maintain the order of power market competition. Considering the fact that China’s social credit system is also in its infancy, it is worthwhile to study the experience of mature power market such as PJM market and Nord Pool market. This paper focuses on reviewing the best practices in global power market credit management system, and proposes a framework for power market credit management system in China.