China to phase out old time-of-use power rates in green push

The change

It has been reported that Beijing will move to phase out the decades‑old time‑of‑use (TOU) electricity pricing system as part of a push to better align retail power prices with a supply increasingly shaped by wind and solar. The National Development and Reform Commission (国家发展和改革委员会) is said to be coordinating the reform. TOU — which sets fixed “peak,” “flat” and “off‑peak” blocks — was designed for a thermal‑plant‑dominated grid. Renewables change the math.

Why it matters

Why abandon a familiar tool? Because fixed TOU blocks do a poor job of signalling the rapid swings in output from wind and solar. China’s grid operators, including the State Grid Corporation of China (国家电网公司), have struggled with both deep regional renewable curtailment and growing flexible demand such as electric vehicles and battery storage. Reportedly, regulators want price signals that reflect real‑time supply and encourage flexibility — dynamic pricing, demand response and storage, not rigid time bands.

Implications and context

For consumers and factories the shift could mean more variable bills and new opportunities to save by shifting load. For developers and grid planners it heightens the need for smarter metering, wholesale market reforms and investment in flexibility. Against a backdrop of global clean‑energy competition and lingering trade tensions, Beijing is threading two needles: rein in industrial power costs while accelerating decarbonisation. It has been reported that provinces will run pilots before a national rollout, but details and timetables remain sparse.

Will smarter pricing cut curtailment and speed renewables into the grid? That is the goal — and the test — of China’s next phase of power market reform.