---
title: "Two departments: Improve the electricity market trading and pricing mechanism, encourage both supply and demand sides to sign flexible pricing mechanisms in medium- and long-term contracts that adjust with market supply and demand and changes in generation costs"
description: "The National Development and Reform Commission and the National Energy Administration issued a notice aimed at improving the electricity market trading and pricing mechanism, encouraging both supply a"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/274270882.md"
published_at: "2026-01-30T08:11:20.000Z"
---

# Two departments: Improve the electricity market trading and pricing mechanism, encourage both supply and demand sides to sign flexible pricing mechanisms in medium- and long-term contracts that adjust with market supply and demand and changes in generation costs

> The National Development and Reform Commission and the National Energy Administration issued a notice aimed at improving the electricity market trading and pricing mechanism, encouraging both supply and demand sides to sign flexible pricing mechanisms in medium- and long-term contracts to adapt to changes in market supply and demand as well as power generation costs. The notice pointed out that the improvement of the coal-fired power capacity price mechanism will allow localities to appropriately adjust the lower limit of medium- and long-term trading prices for coal-fired power based on market conditions to ensure the balance of electricity supply and demand

The National Development and Reform Commission and the National Energy Administration issued a notice on "Improving the Capacity Price Mechanism for Power Generation." It mentioned the improvement of the electricity market trading and pricing mechanism. After the improvement of the coal power capacity price mechanism, localities can appropriately adjust the lower limit of the medium- and long-term market trading price for coal power within the province based on the supply and demand of the electricity market and the variable costs of all units participating in the market, while ensuring the balance of electricity supply and demand and appropriately relaxing the requirements for the signing ratio of medium- and long-term contracts for coal power

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.