BEIJING, December 29 -- China's national electricity exchange opened this week, aiming to tackle the uneven distribution of energy resources amongst different regions through electricity trading.

Exchange operator State Grid Corporation of China (SGCC) said electricity trading had good potential in China, predicitng trade volume would reach 137.5 billion kWh in 2007. That figure is expected to hit 350 billion kWh by 2010 and 1.5 trillion kWh in 2020 - although this estimate may be low considering Continental Europe's exchange--traded electricity markets reached 7.5 trillion kWh in 2006.

SGCC also announced today it has purchased 300 billion kWh from China Three Gorges Project Corporation (CTGPC) over the next five years. SGCC and CTGPC are cooperating on a project to market the electricity generated by the Three Gorges power plant, and carry forward the country's West-to-East electricity transmission project, a joint statement by the companies said.