Discussing Zero Carbon Development of Urban Power Grids: A New Blueprint for Energy Transition

In the context of global energy transition, the zero carbon development of urban power grids has emerged as a key area for achieving the “dual carbon” goals. Recently, the 2025 International Forum on Energy and Power Transition held a technical seminar focusing on “Zero Carbon Development of Urban Power Grids,” bringing together representatives from domestic and international energy companies, international organizations, and industry experts to explore multidimensional pathways for zero carbon development in urban power grids. The discussions centered around the utilization of new energy, technological innovation, policy mechanisms, carbon management, and emission reduction measures, collectively outlining a clear blueprint for the zero carbon development of urban power grids.

Utilization of New Energy: The Cornerstone and Engine of Zero Carbon Transition

The development and utilization of new energy are fundamental to achieving zero carbon development in urban power grids. In recent years, global demand for new energy has been on the rise, with China standing out for its significant contributions. The installed capacity of new energy in China has continuously grown, providing strong momentum for global new energy development.

Since China announced its “dual carbon” goals in 2020, the new energy industry has experienced explosive growth. According to Shu Yinbiao, President of the China Electrotechnical Society, by the end of 2024, China’s installed capacity of new energy will reach 1.45 billion kilowatts, maintaining its position as the world leader and laying a solid foundation for the zero carbon transformation of urban power grids.

Data from the International Energy Agency (IEA) indicates that in 2023, global renewable energy generation rose by approximately 10% year-on-year, with China contributing over 40%. In February of this year, the National Energy Administration released the “Guiding Opinions on Energy Work for 2025,” proposing that the share of non-fossil energy in power generation capacity increase to about 60%, while non-fossil energy’s share of total energy consumption rises to around 20%. This further promotes the application of new energy in urban power grids.

Moreover, the large-scale integration of new energy poses higher adaptability requirements for urban power grids. Ouyang Changyu, Deputy Chief Engineer of State Grid Corporation of China, believes that improving the adaptability of distribution networks to distributed energy sources and establishing a multi-energy collaborative planning mechanism are essential. This will enable seamless integration of distributed energy with traditional energy sources, enhancing the efficiency and stability of the entire grid system.

Chen Lewen, General Manager of the Engineering Construction Department at Hongkong Electric Company, shared that the company is gradually phasing out coal power, increasing its share of natural gas generation, and actively promoting the construction of photovoltaic and offshore wind power. Adjusting the energy structure will help reduce carbon emissions and provide new momentum for sustainable development.

Andrew Gruenmark, Global Head of Energy at CDP and Chair of the RE100 Technical Advisory Group, noted that while China’s electrification process in renewable energy transition is leading globally, the power structure still heavily relies on coal-fired power, posing challenges to the integration of renewable energy due to uneven regional access. There is a need to further optimize the grid structure and enhance the capacity for integrating new energy.

In Singapore, the transition relies on a diversified energy mix and regional cooperation. Huang Haoming, Chief Operating Officer of Sembcorp Energy, stated that the focus will be on developing a green hydrogen network, cross-border green electricity trading, and policy innovation, using a “combined strategy” to achieve the 2050 net-zero emissions target. Efforts will include maximizing solar energy utilization, deepening regional grid interconnections, developing low-carbon alternative energy, and optimizing methane emissions from natural gas.

Technological Empowerment: Digitalization and Innovation Leading Grid Transformation

In the wave of energy transition, technological innovation remains a crucial force driving industry development. For zero carbon development of urban power grids, technological innovation can not only enhance energy utilization efficiency but also provide robust support for intelligent grid management. The rapid advancement of digital technologies offers new opportunities for grid transformation and has become an essential option for energy technology transitions.

According to data from the International Renewable Energy Agency (IRENA), digital technologies can reduce grid losses by 10% to 20%. Shang Weilin, Vice President and President of EDF China, emphasized that digital technology enables precise monitoring and intelligent control of the grid, enhancing operational efficiency and stability. For instance, the application of smart grid technology can decrease energy losses during transmission and improve overall energy utilization efficiency.

Rudolph Coley da Cunha, Director of Regulations and Energy Management at State Grid Brazil CPFL, shared practical experiences in technological innovation, stating that focusing on technology innovation through collaboration with various parties to conduct research on key technologies related to hydrogen-electric coupling, system efficiency, costs, and market dynamics accelerates the process of technological advancement. This collaborative model not only speeds up innovation but also opens up possibilities for the widespread application of new energy technologies.

Schneider Electric is reducing its emissions by adopting environmentally friendly equipment to eliminate sulfur hexafluoride, optimizing grid structures, and implementing AI-driven scheduling automation systems. Wang Zhao, Senior Architect of Schneider Electric’s Grid Industry, explained that these measures not only help reduce carbon emissions but also enhance the reliability and operational efficiency of the grid.

David Gillespie, Director and General Manager of State Grid Australia Assets Company, stated that leveraging the technological advantages of State Grid, they are conducting forward-looking joint assessments of grid technologies, promoting the export of “soft power” such as technology, standards, and regulations, thereby contributing to global energy technology advancement and offering a Chinese solution for global energy transition.

Chen Bin, spokesperson for State Grid Beijing Power, noted that through measures such as “clean coal, alternatives, green energy adoption, energy conservation, and collaboration,” they are accelerating the construction of a new power system model in large cities. By 2025, Beijing’s imported green electricity is expected to exceed 40 billion kilowatt-hours, with green electricity accounting for 35% of total electricity consumption, providing strong momentum for the high-quality, zero carbon development of the capital.

Carbon-Electric Synergy: Multidimensional Interaction of Policy Mechanisms and Emission Reduction Practices

In achieving zero carbon development of urban power grids, the improvement of policy and market mechanisms is indispensable. Supportive policies can provide clear direction and strong backing for industry growth, while innovative market mechanisms can stimulate the intrinsic motivation and innovative capabilities of enterprises.

To promote zero carbon development of urban power grids, it is essential to enhance relevant policy mechanisms, including collaborative planning mechanisms, safety assurance mechanisms, and an “electricity-carbon-certificate” market synergy mechanism. Ouyang Changyu suggests establishing a safety risk management mechanism by clarifying the safety responsibilities of all parties involved, strengthening emergency collaboration systems to ensure stable operation and safe electricity supply of urban power grids.

Previously, the National Development and Reform Commission and the National Energy Administration jointly issued opinions on improving the mechanism and policies for green low-carbon transformation of energy, emphasizing the establishment of a collaborative development mechanism for distributed energy, promoting deep integration between urban power grids and distributed energy.

According to Zhang Defa, Senior Manager of TÜV Rheinland Greater China Industrial Services, companies should actively pursue low-carbon certification to adapt to the rising global carbon prices. The implementation of the European Union’s Carbon Border Adjustment Mechanism (CBAM) has had a profound impact on China’s industrial sector. He advised companies to promptly implement carbon reduction measures during the CBAM transition period to lower carbon emissions per unit of product and to engage EU authorized agencies for verification in anticipation of regulatory requirements after the transition period.

Green electricity procurement is one of the more mature supply chain emission reduction solutions internationally. By increasing the proportion of green electricity used by supply chain companies, significant progress can be made in reducing Scope 2 and Scope 3 emissions. Andrew Gruenmark pointed out that applying a supply chain emission reduction model can effectively decrease corporate carbon emissions and promote the green transformation of the entire industry chain.

Zhang Wenquan, a researcher at the World Resources Institute (WRI), stated that the “Greenhouse Gas Accounting System” is the core framework for global corporate carbon accounting, with Scope 3 emissions being a critical area for corporate emission reduction. The electricity sector should pay attention to updates in international standards and changes in global carbon accounting rules to aid the zero carbon transformation of power grids while aligning with international standards. By integrating with international standards, companies can enhance their carbon management capabilities and foster collaborative advancement of global energy transition.

Currently, the zero carbon development of urban power grids is making concerted efforts from various dimensions, including new energy utilization, technological innovation, policy mechanism enhancement, and carbon management. Through collaborative efforts within the industry and the promotion of international cooperation and exchange, significant progress has been made in zero carbon development of urban power grids, contributing to the global “dual carbon” goals and the establishment of a clean, low-carbon, safe, and efficient energy system.