2023ChinaPowerOutlook:

20KeyTrendsforPowerMarketPlayers

Report/June2023

AuthorsandAcknowledgments

Authors

ZihaoChen

ShuoGao

YujingLiu

ZiyiLiu

KangWang,SichuanEnergyInternetResearchInstitute,TsinghuaUniversity

Authorslistedalphabetically.AllauthorsfromRMIunlessotherwisenoted.

Contributors

TingLi

JialinTian

QinZhou

Contacts

YujingLiu,yujingliu@

ShuoGao,sgao@

CopyrightsandCitation

YujingLiuetal.,2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers,RMI,2023,

https://rmi

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org/insight/2023-china-power-outlook-key-trends-for-power-market-players/

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RMIvaluescollaborationandaimstoacceleratetheenergytransitionthroughsharingknowledgeandinsights.Wethereforeallowinterestedpartiestoreference,share,andciteourworkthroughtheCreativeCommonsCCBY-SA4.0license.

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AllimagesusedarefromiSunlessotherwisenoted.

AboutRMI

RMIisanindependentnonprofitfoundedin1982thattransformsglobalenergysystemsthroughmarket-drivensolutionstoalignwitha1.5°Cfutureandsecureaclean,prosperous,zero-carbonfutureforall.Weworkintheworld’smostcriticalgeographiesandengagebusinesses,policymakers,communities,andnongovernmentalorganizationstoidentifyandscaleenergysysteminterventionsthatwillcutgreenhousegasemissionsatleast50percentby2030.RMIhasofficesinBasaltandBoulder,Colorado;NewYorkCity;Oakland,California;Washington,D.C.;andBeijing,People’sRepublicofChina.

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TableofContents

ExecutiveSummary:AmidaGlobalEnergyCrisisandDauntingChallenges,

China’sPowerMarketReformForgesAhead 5

GeneralRoadmapforPowerMarketReformandRecentProgress 8

“Regulatingthemiddleandliberalizingthetwoends”:Formulatingthetransmissionand

distributiontariffandredesigningthepowerpricingmodel 8

Fivestepsforprovincialpowermarketdevelopment 10

1.Medium-tolong-term(M2L)transactions 10

2.Spotmarket 11

3.Peakregulationservicemarket 11

4.Ancillaryservicesmarket(excludingpeakregulation) 12

5.Capacitycompensationmechanismorcapacitymarket 12

Moreparticipants:Settingupbothwholesaleandretailmarkets 12

Powerisdistributedoverabroaderarea:Interprovincialandregionalpowermarkets 13

Majorfocusesofpowermarketreformin2021and2022 14

Outlookforthepowermarketin2023–25 15

Medium-toLong-Term(M2L)Transactions 17

TheM2Lmarketwillusherinmoremarketplayers,maintainahightradingratio,andseerapid

growthintotaltradingvolume 17

Coal-firedpowerwillcontinuetoplayaroleasapricecornerstoneinthelongrun,butthepricing

mechanismwillgraduallytransitionasthepowerstructurechanges 18

Increasedoperatingriskofcoal-firedunitsassociatedwithprioritizeddispatchpowersources 20

Multiyearcontractsareexpectedtobecometheprimaryriskcontrolinstrumentsforrenewables

projects 22

Time-segmentedM2Ltradingwillbefurtherpromotedasanessentialmeansofconnecting

withthespotmarket 24

SpotMarket 26

Spotmarketdevelopmentacceleratedin2022,andtheprovincial-levelmarketwillbefully

establishedduringthe14thFive-YearPlanperiod 26

spotmarketpricecapandfloorwillgraduallybederegulated,butitsroleintransmitting

The

M2Lpriceswillremainlimited 29

Interprovincialandregionalspotmarketsarestillintheirearlystages,buttheyholdgreat

potentialforpromotingrenewablesandbreakingdownprovincialpricebarriers 32

2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers

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2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers

Energystoragehastakenthefirststepinparticipatinginthespotmarket,butitmayhave

adifficulttimereachingprojectedprofits 33

RetailMarket 34

Asindustrialandcommercialusersfullyenterthemarketandgridagentsgraduallyexit

fromelectricityprocurement,powerretailcompaniesarepoisedtocapturealargershare

ofthemarket 34

Intheshortterm,generation-integratedretailcompanieswillcontinuetomaintaintheir

advantage;however,riskcontrolandcustomerservicearekeytolong-termsuccess 36

Powerretailpackagesarenowbeingdesignedwithgreaterdifferentiationtobettermeet

customers’riskpreferencesforpricefluctuations 38

AncillaryServicesMarket 39

TheupdatedDualRulesaddancillaryservicessuitedtodevelopmentofrenewablesto

theNewPowerSystem 39

Peakregulationmayphaseout,asfrequencyregulationandreserveancillaryservicesturnto

marketization,withcompensationmechanismsforotherancillaryservicesoptimized 40

Peakregulationwillgraduallymergewiththespotmarket 40

Marketizationoffrequencyregulation,reserve,andotherancillaryservicesisaccelerating 40

Moment-of-inertia,ramping-up,andreactive-powerservicescontinuetobecompensated,

buttheirfuturepathsdiffer 42

Thecostsforancillaryservicesarepasseddownstreaminthepowersystem 43

Whiletheancillaryservicesmarketpresentsopportunitiesfornovelenergystorage,itremains

challengingforthemtobecometheprimarysourceofrevenue 45

CapacityMechanisms 46

CapacitymechanismscurrentlyexistonlyinShandongandGuangdong,butareexpectedto

rolloutmorebroadly 46

TheregulatedcapacitypaymentwillbeChina’sprimarycapacitymechanisminthenearfuture 48

TransmissionandDistribution(T&D)TariffMechanism 51

Energystoragemaybeincludedinthecostauditfortransmissionnetwork;thedeclinein

T&Dtariffsmayhalt 51

lackofuserloadandadministrativesupporthasslowedtheprogressofdistributiongrid

The

expansion(DGE)inChina 53

Endnotes 5

5

ExecutiveSummary:AmidaGlobalEnergyCrisisandDauntingChallenges,China’sPowerMarketReformForgesAhead

Inthepast20years,thereformofChina’spowersystemandmarkethasseenseveralbreakthroughs.TheNoticeoftheStateCouncilonthePowerIndustryReformPlan(DocumentNo.5),releasedin2002,broketheverticalintegrationofthepowersystem,separatinggenerationbusinessesfromthegridcompanies.

OpinionsoftheCPCCentralCommitteeandtheStateCouncilonFurtherDeepeningtheReformoftheElectricPowerSystem(DocumentNo.9)andaseriesofsupportingdocumentsreleasedin2015furtherintroducedcompetitioninthewholesale,distribution,andretailbusinesses—pavingthewayfornationwidepilotsofmedium-tolong-term(M2L)transactionsandlarge-scalespotmarkets.

InSeptember2020,Chinaannounceditstargetsofreachingpeakcarbonemissionsby2030andachievingcarbonneutralityby2060—twingoalsnowreferredtoas“DualCarbon.”Sincethen,policiesandmarketsinvariousindustriesandfieldshavebeenevolvingtowardthesegoals.Thepowersectorplaysacriticalroleinreachingthesetargets.ThepowersectoristhelargestemitterofCO2inChina,responsibleforabout40%ofannualemissions.Thedevelopmentandutilizationoflow-carbonpowergenerationtechnologiescanacceleratethetransitiontoalow-carboneconomy.Atthesametime,transformationofothersectorssuchasindustry,transportation,andconstructiondependsonend-useelectrification.Thus,promotingthedevelopmentoflow-carbonelectricitywillhelpmovetheentiresocietytowardtheDualCarbongoals.

ToachieveDualCarboninthepowersectorrequiresnotonlytechnologicalinnovation,butalsomarketreform.InOctober2021,theCommunistPartyofChinaCentralCommitteeandtheStateCouncilissued

OpinionsonCarbonDioxidePeakingandCarbonNeutralityinFullandFaithfulImplementationoftheNewDevelopmentPhilosophy,whichisthetop-level“1+N”policyplanforachievingtheDualCarbontargets.Thedocumentemphasizestheneedtostrictlycontrolfossilfuelenergyconsumptionandaggressivelydevelopnonfossilenergy.Italsocallsforfurthercomprehensivemarketreformsofthepowersystemandimprovementofthepowerpricingmechanism,andsupportforlarge-scaledevelopmentofrenewableenergyandenergystoragetechnologies.

UndertheguidanceoftheDualCarbontop-leveldesign,theNationalDevelopmentandReformCommission(NDRC)andtheNationalEnergyAdministration(NEA)jointlyissuedtheGuidingOpinionsonAcceleratingtheConstructionofaNationalUnifiedPowerMarketSysteminJanuary2022,topromotetheestablishmentoftheNewPowerSystem—onethatissuitedforChinawithexpandedcapacityforrenewableenergyconsumption.

ThedocumentemphasizesthetransformationoftheenergystructureandmarketmechanismsthatsupportaNewPowerSystemwithahighdegreeofpenetrationbyrenewables.Itsetscleargoalsanddirectionforreformduringthe14thFive-YearPlan(2021–25)and15thFive-YearPlan(2026–30)periods:to

2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers

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2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers

establishanationalunifiedpowermarketsystemthatfitstheNewPowerSystemby2030.DevelopmentofthepowermarketisessentialtomeetingtheDualCarbongoals.

Lookingbackatthepowerreformprocess,itbecomesclearthatreformisaboutadjustinganchor

pointsandseekingabalanceamongmultiplegoals.Reformisnotonlyaboutintroducingcompetition,improvingefficiency,andoptimizingresourceallocation,butalsoaboutincreasingthepenetrationrateofzero-carbonelectricitywhileensuringlow-carbon,stableoperationofthepowersystem.Indeed,asthepenetrationrateofrenewablesgenerationcontinuestoincreaseglobally,theissueofstabilityhasbecomeaworldwideconcern.

Aftertheglobalenergycrisisanddomesticseasonalpowershortagesbetween2021and2022,theimportanceandurgencyofrenewableenergyhavecomeintoclearfocus.WhileEuropeleadstheworldinpenetrationofrenewablesandmarketizationofitspowersystem,itispursuingfurtherpowermarketreformstoencouragemorerenewablepowergenerationandgreaterflexibilityofitspowersysteminthefaceoftheenergycrisis.Furtherreformsareaimedatprovidingmoreprotectionforelectricityconsumersandlocalmanufacturerswhilemeetingclimatecommitments.

ThecomingyearsareacrucialtimeforChinatopeakitscarbonemissionsandpromotepowermarketreform:First,someprovincesarestillintheinitialstagesofshort-termtradingmarkets,suchasspotmarketsandancillaryservicesmarkets.Theywillrequirefurtherconsolidationinordertooperatesmoothly.Second,long-termtransactions,suchasrenewablemultiyearcontracts,stilllackthestabilityasinvestmentstoattractcapitalonalargescale.Therefore,thereisampleroomforimprovementinthisarea.Third,thecoordinationofmultilevelmarkets,cross-regionaldispatching,andtradingpresentschallengestoestablishinganationalunifiedpowermarketby2025.Itisimperativetobreakdownadministrativebarriersandoptimizeresourceallocation.Weanticipatethattheseareaswillundergointensivereformsinthenextfewyears.

RMIhasbeencloselyobservingthereformofChina’spowermarket.Inthepastyear,wepublishedPowerMarketandPricingMechanismReforminChina:AVitalSteptowardZero-CarbonElectricityGrowthandNewPowerSystem.Thereportfocusedonthegoaloffinalizingaunifiednationalpowermarketsystemby2030thatfitstheNewPowerSystem.ItexploredelectricitypricingmechanismsthataresuitableforChinaandthegrowthofzero-carbongeneration.Wealsoexamined,attheprovinciallevel,Qinghai’sgoalofbuildingazero-carbonpowersystemby2030inourreportNorthwesternChinaPowerSystemDecarbonization:MovingtowardZero-CarboninQinghaiProvince.Thesereportsfocusonlonger-termsolutionsandaddressthetrendsinpowermarketreform.Theyprovideacomprehensivesuiteofanalysesofspecificconditionsandchallengesfacedbythepowerindustry.

Beginningthisyear,wewillexpandourcoveragetoincludeshortertimeframesbyprovidingannualreviewsandoutlookreportstoanswerthequestion:whatwillhappennextinChina’spowermarketreform?ThisreportaimstoprovidereaderswhoareinterestedinChina’spowermarketizationprocesswithcomprehensiveandin-depthinsightswhilesupportingthedevelopmentofthepowermarketandtheNewPowerSystem.Thevarioussectionsofthisreportwillanalyzethepowermarket’scomponents,includingtheelectricitymarket,ancillaryservicesmarket,capacitymarket,andtransmissionanddistribution(T&D)pricing.Wewillexaminerecentmarketdevelopmentsandprovideanoutlookonpowermarketizationinthenextonetothreeyears(seeExhibitES1).

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2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers

ExhibitES1:20keytrendsforChina’spowermarketreformin2023–25

Electricity

market

M2Lmarket

TheM2Lmarketwillusherinmoremarketplayers,maintainahightradingratio,andseerapidgrowthintotaltradingvolume.

Coal-firedpowerwillcontinuetoplayaroleasapricecornerstoneinthelongrun,butthepricingmechanismwillgraduallytransitionasthepowerstructurechanges.

Therewillbeincreasedoperatingriskofcoal-firedunitsassociatedwithprioritizeddispatchpowersources.

Multiyearcontractsareexpectedtobecometheprimaryriskcontrolinstrumentsforrenewablesprojects.

Time-segmentedM2Ltradingwillbefurtherpromotedasanessentialmeansofconnectingwiththespotmarket.

Spotmarket

Spotmarketdevelopmentacceleratedin2022,andtheprovincial-levelmarketwillbefullyestablishedduringthe14thFive-YearPlanperiod.

Thespotmarketpricecapandfloorwillgraduallybederegulated,butitsroleintransmittingM2Lpriceswillremainlimited.

Interprovincialandregionalspotmarketsarestillintheirearlystages,buttheyholdgreatpotentialforpromotingtheconsumptionofrenewablesandbreakingdownprovincialpricebarriers.

Energystoragehastakenthefirststepinparticipatinginthespotmarket,butitmayhaveadifficulttimereachingprojectedprofits.

Retailmarket

Asindustrialandcommercialusersfullyenterthemarketandgridagentsgraduallyexitfromelectricityprocurement,powerretailcompaniesarepoisedtocapturealargershareofthemarket.

Intheshortterm,generation-integratedretailcompanieswillmaintaintheiradvantage;however,riskcontrolandcustomerservicearekeystolong-termsuccess.

Powerretailpackagesarenowbeingdesignedwithgreaterdifferentiationtobettermeetcustomers’riskpreferencesforpricefluctuations.

Ancillaryservicesmarket

Theupdated“DualRules”addancillaryservicessuitedtodevelopmentofrenewablestotheNewPowerSystem.

Peakregulationmayphaseout,asfrequencyregulationandreserveancillaryservicesturntomarketization,withcompensationmechanismsforotherancillaryservicesoptimized.

Thecostsforancillaryservicesarepasseddownstreaminthepowersystem.

Whiletheancillaryservicesmarketpresentsopportunitiesfornovelenergystoragesystems,itremainschallengingforthemtobecometheprimarysourceofrevenue.

Capacitymarket

CapacitymechanismscurrentlyexistonlyinShandongandGuangdong,butareexpectedtorolloutmorebroadly.

TheregulatedcapacitypaymentwillbeChina’sprimarycapacitymechanisminthenearfuture.

T&Dpricing

Energystoragemayagainbeincludedinthecostauditfortransmissionnetwork;thedeclineinT&Dtariffsmayhalt.

Thelackofuserloadandadministrativesupporthasslowedtheprogressofdistributiongridexpansion(DGE)inChina.

Note:“DualRules”referstotherevisedversionsoftheRegulationsonPowerPlantGridConnectionandGridOperationsandtheRegulationonPowerSys-

temAncillaryServicesOperationsbytheNEA.

GeneralRoadmapforPowerMarketReformandRecentProgress

PowermarketreformisthecoreofChina’spowersystemreform.Thefirstroundofreformin2002enabled

theseparationofthepowergridandpowergeneration—leadingtotheformationoftwopowergridcompanies,fivemajorpowergenerationgroups,andseveralminorones.In2015,thesecondroundofreformwaslaunchedtoimprovethepowerpricingmechanismandestablishamarket-orientedpowertradingsystem.Overthepasteightyears,powerpricingandmarketreformhavemadesignificantprogress,providingastrongfoundationfordevelopmentofanationalunifiedpowermarketsystemandtheNewPowerSystem.

“Regulatingthemiddleandliberalizingthetwoends”:Formulatingthetransmissionanddistributiontariffandredesigningthepowerpricingmodel

Before2015,Chinaappliedaregulatedtariffsystem,namelythe“feed-intariffpluscatalogtariff”system.Theadministrativeauthoritiessetboththefeed-intariffforpowergenerators—paidbythegridtopowerplants—andthecatalogtariffchargedbythegridtoconsumers.Thepricedifferencebetweenthecatalogandthefeed-intariffwastherevenueforgridcompanies.

In2015,underastrategyof“regulatingthemiddleandliberalizingthetwoends,”Chinabegantosetregulatedtransmissionanddistribution(T&D)tariffsforpowergridcompanies.ThisT&Dtariffreformwasrolledoutinthreebatches(seeExhibit1).ThecalculationofthenewT&Dtariffwasbasedonpermittedcost,permittedrevenue,andtax.WiththeT&Dtariffset,thenewmeansofcalculatingelectricitypricesforindustrialandcommercialconsumersinChinabecame“feed-inprice+T&Dtariff+governmentfundsandsurcharges=salesprice”(seeExhibit2).Inaddition,distributiongridexpansion(DGE)reformwascarriedout,withtheaimofintroducingprivateinvestmentfortheconstructionandoperationofincrementaldistributionnetworks.Throughcompetitionandinnovation,thereformisintendedtoimprovepowersupplyservicesforusers.

2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers

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2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers

Exhibit1:Chronologyofpricereformfortransmissionanddistributionofpower

Comprehensivedevelopment(14)

EastInnerMongolia,Liaoning,Jilin,Heilongjiang,Shanghai,Jiangsu,Zhejiang,Fujian,Shandong,Henan,Hainan,Gansu,Qinghai,andXinjiang

Pricingforprovincialtransmissionanddistributionofelectricityinthesecondregulatorycycle(2020–2022)hasbeenfullyfinalized

Firstbatchof

pilots(5)

Hubei,Anhui,

Yunnan,Guizhou,

andNingxia

2014

2017

3/2016

2015

9/2016

2020

Secondbatchofpilots(12)

Beijing,Tianjin,SouthHebei,NorthHebei,Shanxi,Shaanxi,Jiangxi,Hunan,Sichuan,Chongqing,Guangdong,Guangxi

Earlyexploration(2)

WestInner

Mongolia,

Shenzhen

Powerpricingisorganizedaccordingtoasetofrulesorprinciples

“Powerreform”islaunched

Provincial(excluding

Tibet)pricingfor

transmissionand

distributionof

electricityhasbeen

fullydeterminedand

approved

Source:RMI

Exhibit2:

“Costplusreasonableprofit”modelforindustrialandcommercialpowerpricing

Generation

Demand

Transmissionand

distribution

Feed-inprice

Generationsideandconsumptionsideformthroughmarkettrading

Attributablepowerplantrevenue

T&Dtariff

Government

Governmental

fundsandsurcharges

Government

+

+

=Salesprice

verification

verification

Determinedbythethreecomponentsontheleft

Attributablepowergridcompanies?revenue

Pricepaidbytheuser

Source:RMI

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2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers

Medium-tolong-termtransactions

Spotmarket

Peakregulation

servicemarket

Ancillaryservices(exceptforramping)

Capacitymechanism/capacitymarket

Electrical

energy

Ancillaryservices

Capacity

Fivestepsforprovincialpowermarketdevelopment

TheprovincialpowergridisthebasicunitforpowersystembalanceinChina.Therefore,theprovincialpowermarketisacriticalcomponentofmarketdevelopment.ThegeneralideaforpowermarketdevelopmentinChinaisa“provincialplusinterprovincial”structure,wheretheprovincialmarketconstructionisthefirstmover.

Theprovincialpowermarketcannotbeformedovernight.Itfirstneedstomakeasmoothtransitionfromtheplanneddispatchtothemarket-baseddispatch,andthenaddtradingproductstoachievecomprehensivecoverageofpowersystemfunctions.Todate,Chinahastakenfivemainstepstodeveloptheprovincialpowermarket(seeExhibit3).

Exhibit3:KeycomponentsanddevelopmentofprovincialpowermarketsinChina

Fromtradesspanningmultipledaystomultipleyears,electricitytransactionsprimarilytakeplaceonanannualandmonthlybasis.

Includingday-aheadandreal-timeelectricitytransactions,therearetwobatchesandatotalof14provincialpilots,andplansfornationalexpansionareunderdevelopment.

Intra-daypeakregulationisgraduallytransitioningtowardthespotmarketandtheregulatingcapacitymarket.

Targetingancillaryservicessuchasfrequencyregulation,reservecapacity,reactivepowercompensation,flexibleramping,androtatinginertia.

Maintainingsystemadequacy,incentivizingavailablegenerationcapacity,andimprovingtheresilienceofpowersupply.

Source:RMI

1.Medium-tolong-term(M2L)transactions

M2Ltransactionreferstoelectricitytransactionswithamultidaytomultiyeartimeframeandistheinitialstepofpowermarketreform.Thetransactionsaremadebetweenthepowergeneratorsandtheconsumers,usuallythroughbilateralnegotiationsorcentralizedbidding.Morethan90%ofthemarket-basedelectricitytradingvolumeismadethroughM2Ltransactions.Atpresent,M2Ltransactionsaremainlyannualandmonthly:attheendofeachmonthoryear,powergeneratorsandconsumerstradeonelectricityforthefollowingmonthoryear.Insomeprovinces,asmallnumberofmultiday,weekly,ormultiyeartransactionsarebeingtested.

M2Ltransactionsinheritsomefeaturesoftheplannedelectricitydispatchera,andassuchhelpprovideabridgefromtheplanneddispatchsystemtothemarketsystem.Forexample,theM2Landplanneddispatchbothheavilyrelyontradingorplanningonanannualbasis.AnnualandmonthlyM2Ltransactionsprovidepowergeneratorsandconsumerswitharelativelystablelong-termprice,whichservesasahedgeagainstshort-termpowerpricefluctuations.

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2023ChinaPowerOutlook:20KeyTrendsforPowerMarketPlayers

8/2017

2022

8/2018

5/2021

2.Spotmarket

Thespotmarketreferstoelectricitytradingbetweengeneratorsandconsumersontheday-aheadandintra-dayscales,usuallysettledona15-minutebasiswith96unitsperday.Thespotmarketisthebasisfordiscoveringthereal-timevalueofelectricenergy.Theoretically,thespot-marketpriceandfluctuationsprovideareferencefortheM2Ltransactionprices.Chinalaunchedthefirstbatchofeightprovincialspotmarketpilotsin2017andasecondbatchofsixpilotsin2021,andspotmarketsarenowindevelopmentinmostprovinces(seeExhibit4).

Exhibit4:Spotmarketdevelopment

Firstbatchofpilots(8)is

Firstspotsettlementcompleted

Developmentofspot

announced

SouthernChina(startingwith

marketsinnon-pilot

SouthernChina(startingwith

Guangdong)implementsthefirst

provinces(7+)islaunched

Guangdong),westInnerMongolia,

domesticsettlementoperationfor

Chongqing,Shaanxi,Ningxia,

Zhejiang,Shanxi,Shandong,

spottransactions.

Qinghai,Jiangxi,SouthHebei,

Fujian,Sichuan,andGansu.

andHeilongjiang,etc.

5/2019

Trialoperationislaunched

SouthernChina(startingwithGuang-dong)becomesthefirstpilottolaunchatrialoperationofthespotmarket.

Secondbatchofpilots(6)islaunched

Shanghai,Jiangsu,Anhui,Liaoning,Henan,

andHubei.

Source:RMI

3.Peakregulationservicemarket

Thepeakregulationmarketisconsideredapartoftheancillaryservicesmarket.Itwasthefirsttradedproductamongallancillaryservices.Peakregulationserviceismainlytradedamongpowergenerators,wheredispatchableunits—usuallythermalpowergenerators—competetoregulate(adjustdownward)theoutputofg