Power producers can determine a stable production plan, while power consumers can ensure a stable power supply. Stable supply and demand can weaken the motivation of market participants to speculate in the market and help stabilize the price of electricity spot market.
At the same time, while ensuring a stable relationship between supply and demand, both parties to the transaction can flexibly adjust their production and consumption plans when the external environment changes to better adapt to the market. Therefore, power futures trading is the future development trend of China's power trading.
However, due to the fact that China's electricity market has not yet been marketized, the traces of the plan are still obvious, the reform of the power system has just started, the degree of marketization is not deep enough, and there are still problems such as monopoly operation and low efficiency.
The introduction of electric power futures will enable futures traders to buy and sell futures contracts in an open, fair, just and centralized manner according to the rules of the futures market, form real and authoritative futures prices, guide production and operation activities and improve efficiency.
With the gradual liberalization of all aspects of the power industry, the futures market is more conducive to standardizing its market behavior, ensuring fair competition, avoiding oligopoly, promoting the fairness and transparency of power trading behavior, improving the production efficiency of power system and ensuring the in-depth reform of power system.
Generally speaking, there are still many problems to be solved and a long way to go in the real implementation of power futures in China. However, with the development of market economy, the perfection of capital market and the in-depth implementation of power system reform, the development of power futures is an inevitable trend of China's power industry.