The phenomenon of “Debt Electricity Price” is a significant signal in the ongoing transformation of the electricity market. As of October 16, 2025, the concept of “Debt Electricity Price” emerged prominently, particularly in the context of the “Great State”—specifically, in the Sichuan region. The prices witnessed fluctuations over two days, with local real-time prices recorded at -48.74 yuan/kWh and -49.26 yuan/kWh on September 20 and 21.
This situation arises from the “power shortage” in the electricity market, raising questions about the effectiveness of market signals. Are power generation companies genuinely adopting a “debt electricity pricing” approach? And is it true that consumers are benefitting from this model? The current demand-supply imbalance is a primary factor, as evidenced by numerous instances where the market dynamics were disrupted.
Experts suggest that the emergence of “Debt Electricity Prices” is fundamentally tied to the supply-demand relationship within the electricity market. The inherent imbalance in supply and demand is a significant concern. For instance, Sichuan, being a major hydropower province, saw hydropower generation drop to 73% in September 2025, while the share of hydropower in the overall energy mix fell by 34.7% compared to the previous year. Wind and solar power contributions also experienced a decrease of 28.7%, indicating a significant reduction in available energy resources.
In contrast, September’s gas usage in Sichuan’s industrial sector was restricted to a minimal increase of 18.1%. This duality—an increase in electricity demand against a backdrop of constrained supply—has led to the “Debt Electricity Prices” phenomenon, which is inherently seasonal and reflects the market’s evolving nature.
It is essential to note that the underlying dynamics of “Debt Electricity Prices” are not merely a passing trend; they represent a systemic change in the electricity market’s structure. The lack of balance in demand and supply is a core issue that needs to be addressed through regulatory adjustments and structural improvements. For instance, as of September 2025, hydropower’s share in the energy mix was notably reduced, leading to increased reliance on other energy sources.
Furthermore, the challenges presented by the “Debt Electricity Price” scenario are compounded by external factors, such as international market conditions. The prolonged presence of “Debt Electricity Prices” could signal a need for deeper market reforms to ensure stability and predictability in energy pricing.
In summary, the electricity market is in a phase of transformation, akin to navigating through turbulent waters. The “Debt Electricity Price” is more than just a temporary occurrence; it represents a significant shift in how the electricity market operates. Stakeholders must adapt their strategies accordingly, focusing on enhancing market efficiency, managing supply-demand dynamics, and ensuring sustainable energy production.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/rethinking-electricity-pricing-the-emergence-of-debt-electricity-rates-in-chinas-energy-market/
