LAUSR

China's power system has faced major challenges to integrate the rapidly growing capacity of wind and solar power. In the context of a highly regulated power system, different localities have sought to use market-based approaches to mitigate this integration problem. In this paper, we use three cases to illustrate why and how these approaches have been implemented. The three cases involve the generation rights trading between hydropower and thermal power in Sichuan province since the late 1990s, the generation rights trading between wind power and thermal power, and the trading of peak regulating ancillary service in northeast China since 2012, and the generation rights trading between renewable units and captive power units in northwest Gansu province in recent years.