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Format
Partner Publication
Language
Date
18 December 2022

Coordinated development of distributed renewables and the new type of power system in China

Insights from Germany

Preface

China has made significant strides in the green transition of its power system, marked by a rapidly increasing share of new energy sources. These predominantly include wind and photovoltaic (PV) power and in terms of installed capacity, rose from 3.2% in 2010 to 26.7% in 2021. Despite this progress, the country faces challenges such as a high reliance on coal, surging energy and electricity demands, and regional imbalances in electricity use. To address these issues and meet its goals of carbon peaking by 2030 and carbon neutrality by 2060, Beijing has proposed a strategic shift towards a new type of electricity system dominated by new energy sources. This transition involves overhauling power generation, grids, regulation, trading and planning to effectively integrate new energy sources.

This report by Agora Energiewende in partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) highlights the key trends in the development of distributed renewable generation (hereinafter referred to as DRG) in China, including on-grid tariff and subsidy related policies as well as bottlenecks hindering the rapid expansion of large-scale distributed PV systems. It also notes the implementation of mandatory dispatching policies to ensure the use of new energy and the need for improved grid interactions and energy storage solutions.

Addressing the various bottlenecks in DRG development, the report draws on Germany’s successful experiences in policy, regulation and technology to offer recommendations suitable for China. These include enhancing regulations, focusing on innovations in pricing, dispatch and market mechanisms, and developing a technical standard system for grid connections. It also suggests promoting the DRG Rural Revitalization Development Fund to support rural development and deepening institutional reforms to attract more investments.

The full report is available in Chinese and includes an English executive summary.

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Bibliographical data

Publisher
GIZ
Authors
Ming Yin, Kevin Tu
Version number
1
Publication date

18 December 2022

Pages
42
Project
This publication was produced within the framework of the project The Sino-German Energy Transition Project.