Electricity prices in some regions have been “raised to the maximum allowable level,” and experts say this will help ease the tight electricity supply situation.

Since the launch of electricity price reform three days ago, Shandong and Jiangsu provinces—and other regions—have each organized their first transactions following the deepening of market-oriented reforms in coal-fired power grid-connected electricity prices. The average transaction price has risen to the maximum allowable level above the benchmark price. Experts believe that the expansion of the upper limit for market-based electricity prices under the reform will help balance conflicting interests and demands among various stakeholders in the current power market, thereby alleviating the tight supply situation. According to incomplete statistics compiled by reporters from the Securities Daily based on official WeChat accounts of local power trading centers, since the start of the electricity price reform three days ago, Shandong and Jiangsu provinces—and other regions—have each conducted their first transactions following the deepening of market-oriented reforms in coal-fired power grid-connected electricity prices. The average transaction price has risen to the maximum allowable level above the benchmark price (not exceeding the maximum 20% increase). Experts interviewed by the Securities Daily believe that the expansion of the upper limit for market-based electricity prices under the reform will help balance conflicting interests and demands among various stakeholders in the current power market, thereby alleviating the tight supply situation. Experts also pointed out that on the very first day of the electricity price reform, the transaction prices in Jiangsu and Shandong provinces rose nearly 20%, reaching the maximum allowable increase. This was mainly due to two factors: First, Jiangsu and Shandong are the provinces with the highest thermal power generation capacity in China, excluding the Inner Mongolia Autonomous Region; they also have the largest power deficits, second only to Guangdong and Zhejiang provinces, and face significant pressure to reduce emissions. While Inner Mongolia does not suffer from power shortages and even exports electricity, Jiangsu, Shandong, Guangdong, and Zhejiang provinces have the greatest demand for imported electricity. Second, the fact that transaction prices approached the maximum allowable 20% increase indicates strong demand in the electricity markets of these purchasing provinces and robust economic growth momentum locally. In fact, some regions had already introduced electricity price reform plans between August and September. For example, provinces such as Guizhou and Guangdong successively issued notices implementing time-of-use pricing policies. Under these policies, electricity prices are adjusted upward or downward by certain percentages based on the flat-rate price, creating peak and off-peak rates, thus guiding electricity users to shift consumption from peak to off-peak periods and ensuring the safe operation of the power system. In addition, the Zhejiang Provincial Development and Reform Commission has expanded the scope of its time-of-use pricing policy to include large industrial electricity users (excluding electricity used for electrified railway traction, which is subject to special national regulations). The time-of-use pricing policy for general commercial and industrial, residential, and agricultural production electricity users remains unchanged for now. Starting in 2024, all general commercial and industrial electricity users will fully adopt time-of-use pricing, with specific prices and peak/off-peak periods to be determined separately.

Technical Specifications for Centralized Charging Facilities for Electric Bicycles

According to data, China’s stock of electric bicycles has already exceeded 300 million units. Sixty-six percent of Chinese households own electric bicycles. In 2020, electric bicycle sales reached 38.15 million units and continue to grow at an annual rate of 30%. In 2020, the proportion of lithium batteries installed in electric bicycles significantly increased, with market penetration surpassing 25%. Total sales exceeded 10 million battery packs. Industries such as food delivery, express delivery, and shared mobility are experiencing an explosive surge in demand for electric bicycle battery charging and swapping services. By 2025, the installed capacity of electric bicycle batteries is projected to reach 4 billion kilowatt-hours—roughly half of the nation’s daily residential electricity consumption. This massive scale will place tremendous pressure on the power grid during peak charging periods. Against this backdrop, centralized management of electric bicycle charging has become an urgent priority. For any industry to achieve healthy development, it must establish rigorous and comprehensive industry standards. To address the increasingly prominent charging and swapping challenges facing the electric bicycle industry, setting up standardized charging and swapping protocols has become imperative. The "Technical Specifications for Centralized Charging Facilities for Electric Bicycles" have emerged precisely in response to this need, with their content focusing on standardizing the technical requirements related to electric bicycle charging and swapping methods. It is reported that the first China Electric Bicycle Charging and Swapping Technology Innovation Conference, hosted by the China Electricity Council, State Grid Electric Vehicle Service Co., Ltd., and the China Bicycle Association, and organized by Guoshi Energy Technology (Beijing) Co., Ltd., will be held in Beijing on October 21. At this conference, the forthcoming "Technical Specifications for Centralized Charging Facilities for Electric Bicycles" will be interpreted in detail, covering various aspects including technical requirements, testing methods, and operational management. The specifications will clearly define charging and swapping technology requirements, standardize market entry barriers, regulate cooperation models, and unify supporting service facilities, thus exploring a market-oriented approach to solving industry challenges. The conference organizer has also invited government regulators, leading industry operators, manufacturing companies, and research scholars and experts to jointly discuss industry development, deliberate on industry standards, and work together to promote the healthy and orderly growth of the sector.

The electric bicycle charging and battery-swapping industry is set to undergo restructuring and reshuffling!

According to incomplete statistics, over the past decade, there have been a total of 32 incidents worldwide involving fires and explosions at energy storage power stations—1 in Japan, 1 in Belgium, 2 in the United States, 3 in China, and 24 in South Korea (with major Korean battery companies primarily focusing on ternary lithium batteries). In China, incidents of electric bicycles catching fire or exploding while being charged occur with alarming frequency. According to statistics from the National Fire Rescue Bureau, there have been 6,462 electric vehicle fire incidents nationwide so far this year. As previously reported by CCTV Finance, 75% of electric bicycle fires occur during the charging process. On May 10, 2021, an electric bike caught fire inside an elevator in a residential community in Chenghua District, Chengdu. The incident left five people injured to varying degrees, including a baby only five months old. On July 18, 2021, an electric bicycle that was traveling normally in Hangzhou suddenly exploded and caught fire, severely burning the father and daughter who were riding it; both were once in critical condition. In the early hours of September 20, 2021, a tenant on the third floor of the Xingfu Yiju residential community in Tongzhou District, Beijing, brought an electric bicycle’s lithium battery into the apartment for charging, whereupon it exploded, killing all five members of a family living on the fifth floor. …… Electric bicycle charging-related fire accidents are sudden and characterized by rapid fire spread, posing significant potential hazards. These incidents release toxic gases and carry explosion risks, with a high likelihood of re-ignition. Once a fire breaks out, it is extremely difficult to extinguish and can easily trigger secondary disasters.

The demand for travel safety, as well as green and convenient transportation, is accelerating the implementation of standards and technological innovation.

On October 21, at the First Innovation Conference on Electric Bicycle Charging and Battery-Swapping Technologies, Xiang Fanghuai, a second-level researcher at the Standards and Technical Department of the State Administration for Market Regulation, stated that with the development of China’s electric bicycle industry, safety, reliability, environmental friendliness, and convenience have become inevitable requirements for the industry’s sustainable development. Recently, frequent safety issues involving lithium-ion batteries—such as charging-induced fires and explosions—have severely endangered people’s lives and property and have also had a serious negative impact on the development of the electric bicycle industry. For a long time, China has been a major country in terms of the number of electric bicycles in circulation. According to data released by the China Bicycle Association at the end of 2020, in recent years, China’s annual sales of electric bicycles have exceeded 30 million units, and the total number of electric bicycles in use nationwide has approached 300 million. Along with the rapid development of electric bicycles, numerous irregularities—including the illegal operation of vehicles exceeding standards, speeding, overloading, and violations of traffic regulations—have persistently remained unchecked. Moreover, improper charging practices have frequently triggered fires, posing a significant threat to life and property. According to data released by the Fire and Rescue Bureau of the Ministry of Emergency Management, approximately 2,000 fire incidents related to electric bicycles occur nationwide each year, with 80% of these fires being caused during the charging process. Previously, electric bicycle products varied widely in design, and the lack of unified charging standards has constrained the industry’s development. Xiang Fanghuai pointed out that strengthening research into centralized charging technologies for electric bicycles and developing relevant standards—while enhancing charging safety, compatibility, and standardization—is an essential requirement for promoting the safe development of electric bicycles, as well as a necessary step toward fostering green development and achieving high-quality, sustainable economic and social growth. Currently, positive progress has been made in the development of national standards for centralized charging.

Electric bicycle centralized charging facilities are poised for an industry boom.

At the first Electric Bicycle Charging and Battery-Swapping Technology Innovation Conference, the views expressed by enterprises also drew considerable attention. In his speech, Yuan Zhiliang, Vice President of Huawei’s Site Energy and Smart Charging Business, pointed out that the electric bicycle industry is developing very rapidly, yet its infrastructure remains severely inadequate, leaving enormous room for growth. Currently, the industry’s development stage is still unable to meet future demands for battery-swapping services. “The charging and battery-swapping market has great growth potential, but the current lack of standards is holding back industry development. The release of standards at this conference is expected to accelerate the industry’s healthier development,” said Su Chen, Deputy Director of the CITIC Securities Research Institute, who echoed Yuan Zhiliang’s view from an industry research perspective. Regarding ensuring charging safety and technological innovation, Chen Mengbin, Chief Technology Officer of Didi Qingju, stated in his subsequent remarks that safety cannot be addressed by a single solution alone; rather, it must be tackled through a relatively systematic and comprehensive approach. Huang Jiaxi, Chairman of Shenzhen Yimada Technology, emphasized that technological innovation is the driving force behind the entire battery-swapping industry’s development. It is reported that since the implementation of the new national standard for electric bicycles in 2019, the shared charging and battery-swapping industry has ushered in a period of development opportunities. Several charging and battery-swapping companies have successively secured financing. Charging and battery-swapping services are continuously being explored in the B2B sector. Under the impact of the pandemic, new business models and formats—such as same-city fresh food and catering delivery, and same-city home-delivery services—have been spurred into existence. Wang Zhixuan, President of the Electric Vehicle and Energy Storage Branch of the China Electricity Council, noted that with the introduction of national regulations governing electric bicycle charging practices and the promotion of centralized charging to ensure charging safety, centralized charging facilities have experienced rapid growth. As of now, the number of centralized charging facilities for electric bicycles nationwide has reached 4 million units, providing charging and battery-swapping services for over 100 million electric bicycles. Looking ahead, as the new national standard gradually replaces the existing market and the state intensifies efforts to regulate safe bicycle charging, centralized charging facilities are poised for an industry-wide boom.

Solid-state batteries represent the future direction of lithium battery development.

Solid-state batteries have an energy density that is more than ten times higher than that of conventional lithium-ion batteries, and their charging speed is dozens of times faster. This enables new-energy vehicles equipped with solid-state batteries to achieve significantly longer driving ranges. As new-energy vehicles continue to develop, the market’s demands on power batteries are becoming increasingly stringent. Whether it comes to range, energy density, or safety, various types of lithium-ion batteries—each with distinct advantages and disadvantages—are no longer well-suited to the requirements of the new era. Currently, the energy density achievable by liquid lithium-ion batteries has nearly reached its limit. In contrast, all-solid-state lithium batteries have the potential to break through the 500 Wh/kg mark in terms of energy density. Therefore, solid-state batteries represent the future direction for lithium-ion battery development. At present, companies around the world are stepping up their research and development efforts in the field of solid-state lithium batteries. Coupled with supportive policies from governments worldwide, the industrialization process of solid-state lithium batteries is expected to accelerate. According to forecasts by relevant institutions, global demand for solid-state batteries could reach 500 GWh by 2030. Based on conservative estimates by experts, this could create a market size exceeding 300 billion yuan. It is projected that China’s shipments of solid-state batteries will experience rapid growth from 2021 to 2030, potentially surpassing 250 GWh by 2030.