China’s New Market Tool Steers Clean Energy to Where It’s Needed

Two of China’s industrial powerhouses are showing how the country’s new market-based electricity pricing system can steer clean energy investment to the areas that suit them best.

In the southern province of Guangdong — thirsty for electricity but constrained by population density and surrounded by relatively shallow waters — officials have offered generous rates to offshore wind . Further north in Shandong, they’re using the new tools to correct course and reduce a glut of solar power that has built up over the years.