dominant, supplemented by distributed energy.
Natural gas-fired combined cooling, heat and
power (CCHP) systems will be extensively
deployed, and the development and use of
renewables, like wind and solar, will switch from
centralised to distributed mode. Second, in the
medium term (by 2030), the share of distributed
energy in the energy system will increase, as will
energy diversification. Third, in the long term (by
2050), distributed energy will be everywhere and
comprise a major component of the energy supply system. Energy producers and consumers
will make free transactions via Internet-based
energy trading platforms. The International
Energy Agency, in its Prospects for Distributed
Energy Systems in China, explains the trends
driving distributed energy development. These
include making consumers an active part of the
energy system, providing innovative services,
and Internet-based business models.
Making consumers an active part of the
energy system. In distributed energy systems,
consumers have the opportunity to play an active
role in the energy system. They can have their
own generator, energy storage device and smart
equipment, enabling them to be both an energy
consumer and a producer. More and more house
owners, businesses and organisations like local
government can all be part of distributed energy
solutions. This provides a way for them to
express their values, such as using renewable
energy only or a desire to use smart technology.
Integrating multiple energy sources to provide
innovative services. Deep integration of distributed and centralised energy with intelligent
control, information management and user terminals enables energy providers to offer innovative services. First, they can provide energy
optimisation services for end users. The production and consumption of different energy
sources like heat, gas and electricity will be
automatically measured and stored, providing
useful information to help optimise energy production and consumption. Big data, data mining,
and the analysis of users’ energy consumption
and production data will provide a deep
understanding of user characteristics. Second,
they provide value-added services within the
energy system. Most distributed energy systems
will be connected to centralised power distribution systems, exchanging energy and information. Distributed energy systems can provide
value-added services for centralised systems,
including peak shaving, frequency adjustment,
system backup and better power quality.
Internet-based development of distributed
energy business models. Innovative technologies
like information and communications, cloud
computing and big data analytics allow digital
technologies to penetrate each part of the energy
system and connect them all in an intelligent
way. For instance, by analysing the operating
hours of different distributed energy systems and
the data from demand-side response and energy
storage systems, supply and demand can be
coordinated to reduce costs and consumer prices.
Second, by using energy storage and
demand-side response, generation and consumption in centralised and distributed energy
systems can be coordinated to deliver an optimal
energy system. Microgrids will be developed in
remote areas to reduce the cost of constructing
power transmission and distribution systems.
5.2.4 Energy Storage
Energy storage is of strategic importance for the
energy transition and for changing the way
power is generated and consumed. It can boost
supply at peak times and improve grid operations
and the use of grid equipment. Energy storage
holds great potential for the future. According to
the International Energy Agency, by 2050 the
global installed capacity of energy storage will
exceed 800 GW (equal to 10–15% of total
installed power capacity) and be worth several
trillion dollars. China’s installed capacity of
energy storage will reach 200 GW in 2050 and
be valued at more than RMB 2 trillion. This
shows that China has massive and urgent
demand. In the context of the Energy Internet,
energy storage technologies like electrochemical,
thermal, hydrogen and electric vehicles, will be
Special Report 1: A Study of China’s Energy Supply Revolution
163
Natural gas-fired combined cooling, heat and
power (CCHP) systems will be extensively
deployed, and the development and use of
renewables, like wind and solar, will switch from
centralised to distributed mode. Second, in the
medium term (by 2030), the share of distributed
energy in the energy system will increase, as will
energy diversification. Third, in the long term (by
2050), distributed energy will be everywhere and
comprise a major component of the energy supply system. Energy producers and consumers
will make free transactions via Internet-based
energy trading platforms. The International
Energy Agency, in its Prospects for Distributed
Energy Systems in China, explains the trends
driving distributed energy development. These
include making consumers an active part of the
energy system, providing innovative services,
and Internet-based business models.
Making consumers an active part of the
energy system. In distributed energy systems,
consumers have the opportunity to play an active
role in the energy system. They can have their
own generator, energy storage device and smart
equipment, enabling them to be both an energy
consumer and a producer. More and more house
owners, businesses and organisations like local
government can all be part of distributed energy
solutions. This provides a way for them to
express their values, such as using renewable
energy only or a desire to use smart technology.
Integrating multiple energy sources to provide
innovative services. Deep integration of distributed and centralised energy with intelligent
control, information management and user terminals enables energy providers to offer innovative services. First, they can provide energy
optimisation services for end users. The production and consumption of different energy
sources like heat, gas and electricity will be
automatically measured and stored, providing
useful information to help optimise energy production and consumption. Big data, data mining,
and the analysis of users’ energy consumption
and production data will provide a deep
understanding of user characteristics. Second,
they provide value-added services within the
energy system. Most distributed energy systems
will be connected to centralised power distribution systems, exchanging energy and information. Distributed energy systems can provide
value-added services for centralised systems,
including peak shaving, frequency adjustment,
system backup and better power quality.
Internet-based development of distributed
energy business models. Innovative technologies
like information and communications, cloud
computing and big data analytics allow digital
technologies to penetrate each part of the energy
system and connect them all in an intelligent
way. For instance, by analysing the operating
hours of different distributed energy systems and
the data from demand-side response and energy
storage systems, supply and demand can be
coordinated to reduce costs and consumer prices.
Second, by using energy storage and
demand-side response, generation and consumption in centralised and distributed energy
systems can be coordinated to deliver an optimal
energy system. Microgrids will be developed in
remote areas to reduce the cost of constructing
power transmission and distribution systems.
5.2.4 Energy Storage
Energy storage is of strategic importance for the
energy transition and for changing the way
power is generated and consumed. It can boost
supply at peak times and improve grid operations
and the use of grid equipment. Energy storage
holds great potential for the future. According to
the International Energy Agency, by 2050 the
global installed capacity of energy storage will
exceed 800 GW (equal to 10–15% of total
installed power capacity) and be worth several
trillion dollars. China’s installed capacity of
energy storage will reach 200 GW in 2050 and
be valued at more than RMB 2 trillion. This
shows that China has massive and urgent
demand. In the context of the Energy Internet,
energy storage technologies like electrochemical,
thermal, hydrogen and electric vehicles, will be
Special Report 1: A Study of China’s Energy Supply Revolution
163