China is set to launch a distributed energy trading scheme next year, according to the country’s National Energy Administration (NEA).

In a statement released on Monday, the NEA said the wholesale trading platform will allow owners of distributed power systems to sell their power directly to consumers or power distributors.

Billed as a means of encouraging the uptake of distributed renewables such as solar and wind power, the scheme is planned to be implemented on a pilot basis from February 2018 and the results to be evaluated in June.

Regions of the country with high demand for power and good transmission infrastructure will host the scheme, the NEA said, while regions with high curtailment rates will not participate.

Wind and solar installations that join the scheme will have their feed-in tariff payments reduced by 10 per cent or more.