『Abstract
　The traditional strict planning system that regulates China's power market dominates power industry operations. However, a series of market-oriented reforms since 1997 call for more decentralized decision-making by individual market participants. Moreover, with the rapid growth of wind power in China, the strict planning system has become one of the significant factors that has curtailed the generation of wind power, which contradicts with the original purpose of using the government's strong control abilities to promote wind power development. In this paper, we first present the reasons why market mechanisms are important for large-scale utilization of wind power by using a case analysis of the Northeast Grid, and then we illustrate the impact of conflicts between strict planning and market mechanisms on large-scale wind power utilization. Last, we explore how to promote coordination between markets and planning to realize large-scale wind power utilization in China. We argue that important measures include implementing flexible power pricing mechanisms instead of the current fixed pricing approach, formulating a more reasonable mechanism for distributing benefits and costs, and designing an appropriate market structure for large-scale wind power utilization to promote market liquidity and to send clear market equilibrium signals.

Keywords: Wind power; Planning and market; China』

1. Introduction
2. Literature review on the development of wind power in China
3. Why are market mechanisms important for large-scale utilization of wind power in China? Theoretical analysis and case study of the Northeast Grid
　3.1. Current power generation and transmission patterns in China
　3.2. The use of market mechanisms (market-oriented policies) to improve wind power sector efficiency
　3.3. The impact of market mechanisms on large-scale utilization of wind power: A case analysis of the Northeast Grid
　　3.3.1. Imbalance of distribution between wind resources and power load centers
　　3.3.2. Limited capacity of peak load regulation
　　3.3.3. Other concerns
4. The impact of conflict between strict planning and market mechanisms on large-scale wind power utilization
　4.1. Strict and centralized planning system of power pricing obstructs large-scale wind power utilization
　　4.1.1. History of the wind power pricing system in China
　　4.1.2. Factors in the pricing system that restrict large-scale wind power utilization
　4.2. The current power trading mechanisms as another obstacle to large-scale wind power utilization
　　4.2.1. The limitation of the quantity of power trading across provinces constrains large wind power utilization
　　4.2.2. Trade market for incremental power plays a small role in promoting wind power utilization under the current strict planning regulation system
　　4.2.3. Other reasons why current trade mechanisms are not conducive to trans-provincial wind power trade
5. Promoting coordination between markets and planning to realize large-scale wind power utilization
　5.1. Flexible wind power pricing mechanisms should be carried out in China
　5.2. Formulating a more reasonable mechanism for the distribution of benefits and costs using markets and planning
　5.3. Design of specific market architectures considering large-scale wind power utilization in China
　　5.3.1. Market design for power resources trading
　　5.3.2. Market mechanism design for peak regulation resource trading
　　5.3.3. Market mechanism design concerning SOE-dominated power industry
6. Conclusions and policy implications
Acknowledgments
References