China is pushing ahead with the reform of the electricity market and wants to reduce subsidies for renewable energies. This is the result of a new policy published on Sunday. In the future, the electricity price for renewable energies is to be determined more by market forces. The reform is intended to boost demand for renewables, says Yan Qin, an expert on China’s electricity market and CO2 trading at consultancy firm ClearBlue Markets. According to Qin, the new regulation could force more coal-fired power off the grid, as renewables are „more cost-competitive and are favored by market-based pricing“. The reform could therefore also lead to falling electricity prices. However, the authorities stated that prices would hardly fall in the first year.