China's energy revolution plan -- to build a greener new electricity system

Hi, everyone,

China just released a revolutionary energy plan toward ecological civilization. Now we see that after the 3rd Plenum of the 20th CPC Central Committee, detailed and concrete policies are coming out. (About this plenum, please see my previous newsletter Key points to understand China’s 3rd Plenum -- My takeaways )

On August 6th, the National Development and Reform Commission, the National Energy Administration, and the National Data Bureau of China jointly issued the "Action Plan for Accelerating the Construction of a New Electricity System (2024-2027)".

（国家发展改革委、国家能源局、国家数据局联合印发《加快构建新型电力系统行动方案（2024—2027 年》。）

This is of great significance for China to achieve carbon peak and carbon neutrality, move towards ecological civilization, and contribute to the world's battle against climate change. So, I think it is revolutionary.

The following are my takeaways from the Plan.

This plan is in line with the new energy security strategy of "Four Revolutions and One Cooperation" (energy consumption revolution, supply revolution, technological revolution, institutional revolution, and all-round strengthening of international cooperation). (“四个革命、一个合作”能源安全新战略（能源消费革命、供给革命、技术革命、体制革命，全方位加强国际合作）

It is adhering to the basic principles of clean, low-carbon, safe and abundant, economically efficient, supply and demand coordination, and flexible and intelligent. (清洁低碳、安全充裕、经济高效、供需协同、灵活智能的基本原则)

The plan states that 9 “actions” will be focused on from 2024 to 2027:

1. Power system stability guarantee action.(电力系统稳定保障行动)

-- Optimize and strengthen the main power grid framework. (优化加强电网主网架。)

-- Improve the grid-connected performance of new entities. (提升新型主体涉网性能)

In view of the rapid development of new energy, electric vehicle charging infrastructure, new energy storage, etc., formulate and revise grid-connected technical standards and management requirements, reasonably improve the tolerance and active support and regulation capabilities of new entities for frequency and voltage disturbances, strengthen grid-connected detection to ensure that the grid-connected performance meets the standards, and the source-grid-load-storage collaboration improves the stability level of the power system.

(针对新能源、电动汽车充电基础设施、新型储能等快速发展的实际，制修订并网技术标准和管理要求，合理提高新型主体对频率、电压扰动的耐受能力和主动支撑调节能力，加强并网检测，确保涉网性能达标，源网荷储协同提升电力系统稳定水平。)

-- Promote the application of grid-forming technology. (推进构网型技术应用。)

According to the operation needs of the high-proportion new energy power system, select typical scenarios to apply grid-forming control technology, have the ability to actively support the voltage, frequency and power angle stability of the power grid, and improve the safe and stable operation level of the system.

(根据高比例新能源电力系统运行需要，选择典型场景应用构网型控制技术，具备主动支撑电网电压、频率、功角稳定能力，提升系统安全稳定运行水平。)

-- Continuously improve power quality. (持续提升电能质量。)

2. Large-scale and high-proportion new energy external transmission breakthrough action. (大规模高比例新能源外送攻坚行动)

-- Increase the proportion of new energy electricity in the transmission channels. (提高在运输电通道新能源电量占比。)

-- Carry out the application of advanced technologies for new transmission channels. Select a number of transmission channels for sending out large bases in sandy and desert areas and integrated water, wind and solar power bases in major river basins clearly defined in the power planning. On the premise of ensuring the power supply capacity of the transmission channels, relying on advanced power generation, regulation and control technologies, carry out the application of new AC and DC transmission technologies, effectively reduce the proportion of supporting coal power, and realize high-proportion or pure new energy external transmission.

（开展新增输电通道先进技术应用。优选一批电力规划明确的“沙戈荒”大基地和主要流域水风光一体化基地送出通道，在保障送出通道电力供应能力的前提下，依托先进的发电、调节、控制技术，开展新型交直流输电技术应用，有效降低配套煤电比例，实现高比例或纯新能源外送。）

3. High-quality development action of distribution network. (配电网高质量发展行动)

-- Formulate implementation plans for construction and renovation. Focusing on the improvement of power supply capacity, disaster resistance capacity and carrying capacity, guide the energy authorities of each province to formulate the implementation plan for the development of the distribution network.

(组织编制建设改造实施方案。围绕供电能力、抗灾能力和承载能力提升，指导各省份能源主管部门编制配电网发展实施方案。)

-- Improve the whole-process management of the distribution network. Guide all local authorities to carry out the analysis of the impact of new energy grid connection, establish a regular release and early warning mechanism for the open capacity of the distribution network. In key provinces with a large scale of electric vehicle development, organize and carry out research on the accessible charging facility capacity of the distribution network. Targetedly improve the grid connection capacity of new energy and electric vehicle charging facilities. Improve the construction efficiency and safety quality of distribution network projects.

(健全配电网全过程管理。指导各地开展新能源接网影响分析，建立配电网可开放容量定期发布和预警机制。在电动汽车发展规模较大的重点省份，组织开展配电网可接入充电设施容量研究。针对性提升新能源、电动汽车充电设施接网能力。提高配电网工程建设效率和安全质量。)

-- Formulate and revise a number of distribution network standards. Promote the construction of a complete, scientific, standardized, safe and reliable distribution network standard system. (制定修订一批配电网标准。推动构建系统完备、科学规范、安全可靠的配电网标准体系。)

-- Establish an evaluation system of distribution network development indicators. (建立配电网发展指标评价体系。)

4. Construction action of intelligent dispatching system. (智慧化调度体系建设行动 )

-- Strengthen the overall design of the intelligent dispatching system. Adapt to the new requirements of large-scale and high-proportion new energy and new entities for power dispatching, and comprehensively promote the optimization and adjustment of dispatching methods, mechanisms and management. (加强智慧化调度体系总体设计。适应大规模高比例新能源和新型主体对电力调度的新要求，全面推进调度方式、机制和管理的优化调整。)

-- Innovate the new active distribution network dispatching mode. Focus on areas where new entities such as distributed new energy, user-side energy storage, and electric vehicle charging facilities develop rapidly, explore and apply the new active distribution network dispatching mode of main-distribution-microgrid collaboration, and encourage other areas to explore synchronously according to local conditions. By improving the power dispatching mechanism at the municipal and county levels, strengthen the control ability of distributed resources, improve the local balance ability at the distribution network level and the active support ability to the main grid. (创新新型有源配电网调度模式。重点在分布式新能源、用户侧储能、电动汽车充电设施等新型主体发展较快的地区，探索应用主配微网协同的新型有源配电网调度模式，鼓励其他地区因地制宜同步开展探索。通过完善市、县级电力调度机制，强化分布式资源管控能力，提升配电网层面就地平衡能力和对主网的主动支撑能力。)

5. Improvement action of new energy system-friendly performance (新能源系统友好性能提升行动)

-- Build a number of system-friendly new energy power stations. Integrate source-storage resources, optimize the dispatching mechanism, and improve market rules to improve the system-friendly performance of wind power and photovoltaic power stations in typical scenarios. Transform and upgrade a number of new energy power stations that have been equipped with new energy storage but have not been effectively utilized, and build a number of system-friendly new energy power stations that enhance the power supply guarantee capacity, improve the reliable output level, and increase the confidence output of new energy to more than 10%.

(打造一批系统友好型新能源电站。整合源储资源、优化调度机制、完善市场规则，提升典型场景下风电、光伏电站的系统友好性能。改造升级一批已配置新型储能但未有效利用的新能源电站，建设一批提升电力供应保障能力的系统友好型新能源电站，提高可靠出力水平，新能源置信出力提升至10%以上。)

-- Implement a number of computing power and power collaboration projects. Coordinate the development needs of data centers and the endowment of new energy resources, scientifically integrate source-load-storage resources, and carry out the collaborative planning and layout of computing power and power infrastructure. Explore the "green power aggregation supply" model of nearby power supply, aggregated trading and local consumption of new energy. Integrate regulatory resources, improve the collaborative operation level of computing power and power, increase the proportion of green power in data centers, and reduce the demand for grid guarantee capacity. Explore the stable supply mode of green power from the joint operation of concentrating solar power generation, wind power and photovoltaic power generation. Strengthen the recovery and utilization of waste heat resources from data centers to meet the heat demand in surrounding areas.

(实施一批算力与电力协同项目。统筹数据中心发展需求和新能源资源禀赋，科学整合源荷储资源，开展算力、电力基础设施协同规划布局。探索新能源就近供电、聚合交易、就地消纳的“绿电聚合供应”模式。整合调节资源，提升算力与电力协同运行水平，提高数据中心绿电占比，降低电网保障容量需求。探索光热发电与风电、光伏发电联营的绿电稳定供应模式。加强数据中心余热资源回收利用，满足周边地区用热需求。)

-- Build a number of smart microgrid projects. In areas at the end of the power grid and areas not covered by the large power grid, build a number of smart microgrid projects with complementary wind and solar energy storage to improve the local power supply level. In areas with good new energy resources, build a number of smart microgrid projects with source-grid-load-storage collaboration to improve the self-peak shaving and self-balancing capabilities of the microgrid, increase the proportion of self-generation and self-use of new energy power generation, alleviate the adjustment and consumption pressure of the large power grid, and actively support the development of new business forms and new models.

(建设一批智能微电网项目。在电网末端和大电网未覆盖地区，建设一批风光储互补的智能微电网项目，提高当地电力供应水平。在新能源资源条件较好的地区，建设一批源网荷储协同的智能微电网项目，提高微电网自调峰、自平衡能力，提升新能源发电自发自用比例，缓解大电网调节和消纳压力，积极支持新业态新模式发展。)

6. Upgrade action of a new generation of coal power. (新一代煤电升级行动)

-- Carry out the pilot demonstration of a new generation of coal power. Explore the development path of a new generation of coal power suitable for the development of a new power system. Apply low-carbon coal power technology routes such as zero-carbon or low-carbon fuel blending and carbon capture, utilization and storage to significantly reduce the carbon emission level of coal power. (开展新一代煤电试验示范。探索与新型电力系统发展相适应的新一代煤电发展路径。应用零碳或低碳燃料掺烧、碳捕集利用与封存等低碳煤电技术路线，促进煤电碳排放水平大幅下降。)

-- Promote the construction of standards for a new generation of coal power. (推动新一代煤电标准建设。)

7. Optimization action of power system regulation capacity. (电力系统调节能力优化行动 )

-- Build a number of shared energy storage power stations. (建设一批共享储能电站。)

-- Explore and apply a number of new energy storage technologies. Focusing on the requirements of different application scenarios for climbing rate, capacity, long-term scale regulation, economy and safety, explore and build a number of energy storage power stations with multiple technical routes such as liquid flow batteries, flywheels, compressed air energy storage, gravity energy storage, carbon dioxide energy storage, liquid air energy storage, sodium-ion batteries and lead-carbon batteries. Through reasonable policy mechanisms, guide the market-oriented investment and operation of new energy storage power stations.

(探索应用一批新型储能技术。围绕不同应用场景对爬坡速率、容量、长时间尺度调节及经济性、安全性的需求，探索建设一批液流电池、飞轮、压缩空气储能、重力储能、二氧化碳储能、液态空气储能、钠离子电池、铅炭电池等多种技术路线的储能电站。通过合理的政策机制，引导新型储能电站的市场化投资运营。)

8. Expansion action of electric vehicle charging facility network. (电动汽车充电设施网络拓展行动)

-- Improve the network layout of charging infrastructure. Focusing on "two areas" (residential areas and office areas) and "three centers" (commercial centers, industrial centers and leisure centers), lay out public charging infrastructure according to local conditions, expand the coverage of charging networks on expressways and strengthen charging service guarantees during holidays, effectively increase charging facilities in rural areas, and gradually build an increasingly perfect charging infrastructure network.

(完善充电基础设施网络布局。以“两区”（居住区、办公区）、“三中心”（商业中心、工业中心、休闲中心）为重点，因地制宜布局公共充电基础设施，扩大高速公路充电网络覆盖范围并加强节假日充电服务保障，有效增加农村地区充电设施，逐步构建日益完善的充电基础设施网络。)

-- Strengthen the integration and interaction between electric vehicles and the power grid. Make full use of the energy storage resources of electric vehicles and fully promote intelligent and orderly charging. Support the exploration of the integration and interaction of vehicles, piles, stations and networks, study and improve the time-of-use electricity price policy for electric vehicle charging, explore the discharge price mechanism, and promote the participation of electric vehicles in the interaction of the power system.

(加强电动汽车与电网融合互动。充分利用电动汽车储能资源，全面推广智能有序充电。支持开展车、桩、站、网融合互动探索，研究完善电动汽车充电分时电价政策，探索放电价格机制，推动电动汽车参与电力系统互动。)

-- Establish and improve the standard system of charging infrastructure. Enhance the leading ability of standard internationalization. (建立健全充电基础设施标准体系。提升标准国际化引领能力。)

9. Enhancement action of demand-side synergy capacity (需求侧协同能力提升行动)

-- Carry out high-proportion demand-side response in typical areas. Implement high-proportion demand-side response in areas with prominent peak load problems or difficulties in new energy consumption. (开展典型地区高比例需求侧响应。在尖峰负荷问题突出或新能源消纳困难的地区实施高比例需求侧响应。)

-- Build a number of virtual power plants. Combined with the needs of power supply guarantee and new energy development, use local source-load-storage resources to build a number of virtual power plants. Establish and improve the technical standard system of virtual power plants, improve the market access, safe operation standards and trading rules of virtual power plants, regularly participate in system regulation, and enhance the capacity of power supply guarantee and local consumption of new energy.

(建设一批虚拟电厂。结合电力保供、新能源发展等需求，利用当地源荷储资源，建设一批虚拟电厂。建立健全虚拟电厂技术标准体系，完善虚拟电厂的市场准入、安全运行标准和交易规则，常态化参与系统调节，提升电力保供和新能源就地消纳能力。) ###