Advancements and Developments in New Power Systems: Insights from the Polaris Power Network

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The Polar Star has identified over 11,000 results related to the new power system. Notably, the highest subsidy for individual projects can reach 300,000! A province is now soliciting opinions on a plan to promote the development of virtual power plants.

Energy Services

On May 19, 2025, the Guizhou Provincial Energy Bureau released a draft for the Implementation Plan for the Orderly Promotion of Virtual Power Plant Development. Virtual power plants leverage modern communication and control technologies to aggregate distributed resources such as distributed energy sources, adjustable loads, and storage, enabling these resources to collaboratively participate in power system optimization and market transactions.

Demand-Side Energy Efficiency Management

Demand-side energy efficiency management is indispensable to new power systems centered around renewable energy. It reflects a more scientific approach to power system management. Within the new power system, effective demand-side energy efficiency management based on integrated smart energy systems is vital.

Policy Interpretation

On May 19, 2025, the Shanghai Municipal Development and Reform Commission issued an interpretation of the Management Measures for Regulation Capacity Reward Funds in New Power Systems. The need for regulation capacity is critical to the development of new power systems. Virtual power plants are recognized as an effective way to aggregate regulation resources and develop such capacity, with electric vehicle charging and discharging (V2G) and new energy storage being key regulation resources.

Market Developments

With the continuous reduction in the cost of renewable energy generation and the increasing share of renewable installations, the structure of the electricity market is evolving. The push towards market-oriented electricity pricing is unavoidable, akin to a child’s inevitable growth, requiring parents to decide how to let go.

Upcoming Innovations

The first solid-state sodium salt battery in China is set to commence production in Ordos, integrating local supply chains to stimulate the growth of related industries. This project will support Ordos in establishing an integrated new power system.

Investment and Development

On March 26, 2025, the National Development and Reform Commission and the National Energy Administration jointly issued the Implementation Plan for the Special Action of Upgrading Coal Power (2025-2027), aiming to solidify the safety net role of coal power while actively promoting its transformation to support the new power system.

Collaborative Efforts

China Huaneng has recognized the importance of advancing a new energy system and new power system while adhering to the national strategic development goals. The company is focusing on optimizing coal power development and enhancing the roles of renewable energy, hydropower, and nuclear power.

Regional Initiatives

In Chongqing, efforts are being made to enhance the policy market mechanisms to adapt to the development of new power systems. This includes improving system regulation capabilities and commissioning significant natural gas power projects to bolster emergency response capabilities.

Technological Advancements

Recent data from the National Grid indicates that Xinjiang’s new energy installations have surpassed 100 million kilowatts, with wind and solar projects becoming the main contributors to new installations. The demand for regulation sources is intensifying as the new power system evolves.

Community Engagement

As part of enhancing community engagement, the State Grid is actively building an integrated source-load-storage service platform to meet the needs of emerging energy systems. The focus is on incorporating distributed solar, electric vehicle charging networks, and other elements into smart energy management systems.

Future Directions

In conclusion, the new power system is undergoing rapid evolution, with a strong emphasis on renewable energy integration, regulatory frameworks, and innovative technologies. Stakeholders across the energy sector are encouraged to stay informed and engaged with these developments for a sustainable energy future.