resources is random and intermittent. When
fluctuating distributed generation is connected to
a conventional grid, it threatens grid security and
reliability. To eliminate this threat and safeguard
the grid, the amount of intermittent solar and
wind power in the grid has to be limited, which
results in severe wind and solar curtailments (i.e.
a large proportion of the energy generated is not
used). The Energy Internet solves this problem by
enabling small distributed energy networks and
microgrids to: (i) meet local consumption needs
first; and (ii) export surplus energy to the larger
grid. This significantly improves the use and
efficiency of renewable energy.
The Energy Internet also plays a critical role in
smart energy storage. When there is a renewable
energy surplus, pumped storage power plants and
electric vehicles can store the surplus and release
it when needed. Smart household appliances like
washing machines, dishwashers and water heaters
can be programmed to consume energy when
demand and tariffs are low. These energy storage
facilities and smart household appliances can
form a virtual power plant to address peak
demand by releasing more energy into the network and by consuming it at the optimal time.
4.4 IT Drives Change in Energy
Consumption
Currently, China is faced with unreasonably high
energy use and low energy use efficiency. The
Energy Internet is highly promising and will be
of great significance to change China’s energy
consumption patterns, especially by making the
shift from centralised to distributed energy production possible.
4.4.1 The Rapidly Evolving Energy
Internet
First, the fast and large-scale development of
cities, industrial parks, high energy-consuming
companies and green buildings means there is an
urgent need for the development of the Energy
Internet.
Second, China is confronted with such challenges as unsustainable energy production, low
energy use efficiency and conservative thinking
in the energy industry. The Energy Internet can
reduce wind and solar power curtailment and
improve power output and asset utilisation
through big data-based life cycle management
and interaction between multiple energy sources
and loads. By integrating big data analysis on
user energy consumption, energy management,
demand response and smart homes that can sell
surplus power, energy use efficiency can be significantly improved. Ultimately, more renewables in the energy mix and better energy use
efficiency will drive change in the energy system.
4.4.2 From Centralised to Distributed
Energy Trading
According to Professor Zeng Ming, Director of
the Research Center of Energy and Electricity
Economy, North China Electric Power University, electricity will eventually become a traded
commodity. In the age of the Energy Internet, the
traditional consumer is both a producer and a
consumer (prosumer). Consumers can produce
power with their own distributed renewable
energy system. More importantly, they can provide user-side load resources to participate in
demand response through smart energy solutions.
Consumers can be active in community
demand-side response projects, and also be part
of a virtual power plant. In addition, consumers
can also sell power to the grid from their electric
vehicle and energy storage facilities.
5 Changes in Conventional Fossil
Energy Demand
5.1 Coal
5.1.1 Current Status and Trends in Coal
Demand
According to the official website of the Ministry
of Land and Resources of the PRC, by the end of
2014, China’s proven reserves of coal were
1,531.7 billion tonnes (Bt), third largest after the
USA and Russia. In 2015, China’s coal production was 3.75 Bt, down 3.3% from 2014, and
47% of the world’s total coal production. China’s
Special Report 2: Research on China’s Energy Demand Revolution
265
fluctuating distributed generation is connected to
a conventional grid, it threatens grid security and
reliability. To eliminate this threat and safeguard
the grid, the amount of intermittent solar and
wind power in the grid has to be limited, which
results in severe wind and solar curtailments (i.e.
a large proportion of the energy generated is not
used). The Energy Internet solves this problem by
enabling small distributed energy networks and
microgrids to: (i) meet local consumption needs
first; and (ii) export surplus energy to the larger
grid. This significantly improves the use and
efficiency of renewable energy.
The Energy Internet also plays a critical role in
smart energy storage. When there is a renewable
energy surplus, pumped storage power plants and
electric vehicles can store the surplus and release
it when needed. Smart household appliances like
washing machines, dishwashers and water heaters
can be programmed to consume energy when
demand and tariffs are low. These energy storage
facilities and smart household appliances can
form a virtual power plant to address peak
demand by releasing more energy into the network and by consuming it at the optimal time.
4.4 IT Drives Change in Energy
Consumption
Currently, China is faced with unreasonably high
energy use and low energy use efficiency. The
Energy Internet is highly promising and will be
of great significance to change China’s energy
consumption patterns, especially by making the
shift from centralised to distributed energy production possible.
4.4.1 The Rapidly Evolving Energy
Internet
First, the fast and large-scale development of
cities, industrial parks, high energy-consuming
companies and green buildings means there is an
urgent need for the development of the Energy
Internet.
Second, China is confronted with such challenges as unsustainable energy production, low
energy use efficiency and conservative thinking
in the energy industry. The Energy Internet can
reduce wind and solar power curtailment and
improve power output and asset utilisation
through big data-based life cycle management
and interaction between multiple energy sources
and loads. By integrating big data analysis on
user energy consumption, energy management,
demand response and smart homes that can sell
surplus power, energy use efficiency can be significantly improved. Ultimately, more renewables in the energy mix and better energy use
efficiency will drive change in the energy system.
4.4.2 From Centralised to Distributed
Energy Trading
According to Professor Zeng Ming, Director of
the Research Center of Energy and Electricity
Economy, North China Electric Power University, electricity will eventually become a traded
commodity. In the age of the Energy Internet, the
traditional consumer is both a producer and a
consumer (prosumer). Consumers can produce
power with their own distributed renewable
energy system. More importantly, they can provide user-side load resources to participate in
demand response through smart energy solutions.
Consumers can be active in community
demand-side response projects, and also be part
of a virtual power plant. In addition, consumers
can also sell power to the grid from their electric
vehicle and energy storage facilities.
5 Changes in Conventional Fossil
Energy Demand
5.1 Coal
5.1.1 Current Status and Trends in Coal
Demand
According to the official website of the Ministry
of Land and Resources of the PRC, by the end of
2014, China’s proven reserves of coal were
1,531.7 billion tonnes (Bt), third largest after the
USA and Russia. In 2015, China’s coal production was 3.75 Bt, down 3.3% from 2014, and
47% of the world’s total coal production. China’s
Special Report 2: Research on China’s Energy Demand Revolution
265