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Z. Lu and G. Zhu
4.1 Background and Challenges of China’s Power System
Transition
4.1.1 Drivers of Power System Transition in the Era
of Energy Revolution
Since the turn of the twenty-first century, the booming Chinese economy and subsequent soaring energy demands have produced mounting pressure of resource depletion and environmental degradation. In light of the challenges, President Xi Jinping
called for an energy revolution in June 2014 in a bid to reduce energy consumption, increase energy supply, boost technology innovation and step up international
cooperation. Pledging that China would “promote a revolution in energy production
and consumption, and build an energy system that is clean, low-carbon, safe, and
efficient”, the Report to the 19th Party Congress delivered a clear path forward for
the development and reform of China’s energy sector.
The global call for environmental protection and sustainable development has
also turned the spotlight on greenhouse gas emissions from the production and
consumption of energy. On September 3, 2016, Standing Committee of China’s
National People’s Congress adopted the proposal to review and ratify Paris Agreement. Under the framework of the agreement, China outlined a set of ambitious
INDCs (Intended Nationally Determined Contributions): (1) cut CO 2 emissions per
unit of GDP by 60–65% from the 2005 level by 2030; (2) increase non-fossil fuels
in primary energy consumption to roughly 20% by 2030; (3) China’s carbon dioxide
emission will peak by around 2030 and the country will work hard to achieve the
target earlier; (4) increase forest carbon stock by around 4.5 billion cubic meters
from the level in 2005. The four targets articulate China’s commitment to the world,
and would underpin the country’s transition in energy production and consumption.
The proportion of non-fossil-fuel energy (mainly including renewable energy such
as hydro, wind, and solar) in primary energy consumption represents a key metric in
assessing energy transition.
To recapitulate, the primary goal of China’s energy revolution is to gradually
replace fossil fuels by renewables, increase the share of renewable and other clean
energy sources in primary energy production and consumption, promote energy transition, and build a new-generation energy system that is clean, low-carbon, safe and
efficient (Zhou et al. 2018). Since the power system is closely associated with the
transmission and consumption of renewables, it’s crucial for the fulfillment of core
targets of energy transition. In this connection, the transition must be driven by
technological development and innovation. The pursuit of clean development has
brought greater diversity to the development of power systems where power supply,
grid network, load and storage have witnessed profound changes. The deep integration of information and communication technologies (ICT) and physical systems
has also emerged as a key trend. Meanwhile, the future blueprint of Energy Internet,
an upgrade of smart grid, is being increasingly and widely embraced by the energy
sector.
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