In recent years, the Chinese government has provided significant support for the development of distributed energy within the country. According to the outlined plans during the «14th Five-Year Plan» period, there are substantial opportunities for expanding distributed energy in the Middle Kingdom. As of early 2023, the total installed capacity of distributed energy in China was approximately 250.005 GW. In comparison, these figures are significantly lower in Russia, hovering around 20-24 GW.
The «Energy Law of the People's Republic of China» adopted at the 12th session of the Standing Committee of the 14th National People's Congress on November 8, 2024, amends the Energy Law of 1996 and encourages the development of comprehensive energy services in the field of distributed energy, promoting complementary joint supplies of electricity from various energy sources to enhance the sustainability, efficiency, and rational consumption of different combinations of electricity.
«As stated in Article 25 of the Law, the state insists on promoting both centralized and distributed electricity generation,» explains Valery Zhikharev, Vice President of the Distributed Power Generation Association.
Joint electricity supplies from multiple sources and comprehensive energy services are key directions for the development of China's energy sector and an important pathway toward achieving carbon neutrality.
In China's energy landscape, the primary focus is on the interconnection of the development of electricity generation, thermal energy, ventilation and air conditioning industries, as well as electricity consumption. The implementation of the Law's provisions tightens this interconnection, breaking down the traditional model of separate planning, design, and operation of various types of energy sources, and realizes horizontal linkages of energy systems based on increased interaction between electricity production and consumption.
Valery Zhikharev notes that this type of integration in China is being implemented in practice to the extent that the fundamental difference between electricity producers and consumers is blurred.
«The Law enshrines the principles for developing new energy systems based on coordinated construction of power grids, the intelligent transformation of power grid infrastructure, and smart microgrids. This approach aims to enhance the energy system's ability to accept, distribute, and regulate the operation of energy sources from various origins,» emphasizes the expert.
The Law promotes improving energy efficiency, stimulates the development of distributed energy, comprehensive energy services, and complementary joint supplies of electricity from multiple energy sources, while actively advancing market-oriented energy-saving services such as energy consumption management and low-carbon, high-efficiency energy consumption.
This legislation is particularly interesting as it legally formalizes a practically implementable phase of the transformation of China's energy structure, establishing technological priorities for the future development of distributed energy in the country at a legislative level. To study this energy development experience, the team from the Small Energy Association has begun preparations for a joint business mission with participants from the Chinese energy market.
