4 The Transition of China’s Power System
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services is necessary. China is actively advancing a new round of power system
reform. Currently, many regions have tried out the power spot market and renewable energy green certificate trading, which unfortunately are still in the infant stage
and lacks coordination. Meanwhile, the management on electricity, gas, oil, heat
and other market is still fragmented without comprehensive planning. It’s advised
to advance the reform of the power system, achieve the coordinated operation of
medium-and-long term power trading and spot transactions, open the channel of
private investment, actively establish a comprehensive energy service system, and
encourage all types of energy enterprises to participate in the development of the
new generation of energy market.
(3) Learn from the success stories of Europe and the United States, facilitate
the establishment of demand-side management in China, which should go
hand in hand with power market reform.
Demand response technology is essential to accommodate the high uptake of renewable energy in the future. Now, China still lacks full-fledged market mechanism, and
pilots in this regard have been mainly carried out in Beijing, Shanghai and other
developed areas, with limited technology demonstration and scale-up. It’s important
to strengthen and expand demonstration efforts, coupled with market pricing policies. The key step is combining demand response with the “green tariff” system.
In the consumption tarrif, markup of the new energy development fund should be
moderately increased, and cross-subsidies for residential electricity from industry
and commerce should be reduced or scrapped. The low electricity price for residential use is the leftover of the low wage system in past, which has long been divorced
from the national conditions, and has led to energy waste. “Green tariff” ensures
timely payment of new energy subsidies and boost green energy development. Other
measures include: to curb high consumption of electricity to save energy and power,
and improve energy efficiency through multi-energy complementary measures; to
reduce electricity price of industry and commerce to enhance competitiveness of
Chinese products and economy; and to provide subsidies to low-income earners to
ease the financial burden of power consumption.
(4) Develop highly efficient, low-cost, long-life energy storage technologies and
products for widespread application.
A high uptake of renewable energy is the salient feature of the future power system.
All forms of energy storage devices (electricity storage, heat storage and hydrogen
storage) can be used by power grid and users to contain the fluctuation and intermittency of renewable energy output, meet the stability and economic demands of
distributed energy supply, and support the development of electric vehicles.
The following efforts are supposed to make: to strengthen basic research on
energy storage, with emphasis on supporting the development of advanced battery
energy storage materials with high energy density and low cost (e.g. grapheme),
and research on improving safety and reducing negative environmental impacts; to
explore the research and application of high energy density and low cost energy
storage technologies such as metal aluminum air fuel cell; to carry out project
157
services is necessary. China is actively advancing a new round of power system
reform. Currently, many regions have tried out the power spot market and renewable energy green certificate trading, which unfortunately are still in the infant stage
and lacks coordination. Meanwhile, the management on electricity, gas, oil, heat
and other market is still fragmented without comprehensive planning. It’s advised
to advance the reform of the power system, achieve the coordinated operation of
medium-and-long term power trading and spot transactions, open the channel of
private investment, actively establish a comprehensive energy service system, and
encourage all types of energy enterprises to participate in the development of the
new generation of energy market.
(3) Learn from the success stories of Europe and the United States, facilitate
the establishment of demand-side management in China, which should go
hand in hand with power market reform.
Demand response technology is essential to accommodate the high uptake of renewable energy in the future. Now, China still lacks full-fledged market mechanism, and
pilots in this regard have been mainly carried out in Beijing, Shanghai and other
developed areas, with limited technology demonstration and scale-up. It’s important
to strengthen and expand demonstration efforts, coupled with market pricing policies. The key step is combining demand response with the “green tariff” system.
In the consumption tarrif, markup of the new energy development fund should be
moderately increased, and cross-subsidies for residential electricity from industry
and commerce should be reduced or scrapped. The low electricity price for residential use is the leftover of the low wage system in past, which has long been divorced
from the national conditions, and has led to energy waste. “Green tariff” ensures
timely payment of new energy subsidies and boost green energy development. Other
measures include: to curb high consumption of electricity to save energy and power,
and improve energy efficiency through multi-energy complementary measures; to
reduce electricity price of industry and commerce to enhance competitiveness of
Chinese products and economy; and to provide subsidies to low-income earners to
ease the financial burden of power consumption.
(4) Develop highly efficient, low-cost, long-life energy storage technologies and
products for widespread application.
A high uptake of renewable energy is the salient feature of the future power system.
All forms of energy storage devices (electricity storage, heat storage and hydrogen
storage) can be used by power grid and users to contain the fluctuation and intermittency of renewable energy output, meet the stability and economic demands of
distributed energy supply, and support the development of electric vehicles.
The following efforts are supposed to make: to strengthen basic research on
energy storage, with emphasis on supporting the development of advanced battery
energy storage materials with high energy density and low cost (e.g. grapheme),
and research on improving safety and reducing negative environmental impacts; to
explore the research and application of high energy density and low cost energy
storage technologies such as metal aluminum air fuel cell; to carry out project