Benefits of Distributed Aggregation Trading for Key Enterprises: Insights from Wu Jingwen of Baobi New Energy

Wu Jingwen of Baobi New Energy: Positive Developments for Three Terminal Enterprises in Distributed Aggregation Trading

On April 25, 2025, during the “2025 Distributed Photovoltaic Innovation Forum (Jiangsu Station)” hosted by the Polar Star Solar Photovoltaic Network and the Polar Star Energy Storage Network, Wu Jingwen, Deputy Director of the Smart Energy Division at Baobi New Energy Technology Co., Ltd., highlighted the significance of distributed new energy in the context of carbon neutrality goals. As an essential component of clean energy, the development models and market mechanism innovations related to distributed energy have gained considerable attention.

In recent years, both national and local governments have introduced a variety of policies to support the aggregation trading of distributed power sources. During the initial phase of market-oriented trading for distributed power, registration identified entities as power generation companies, which later evolved into distributed power sources. Aggregators have emerged, identified as distributed power aggregators in some areas, while in other regions, they are referred to as virtual power plants. This aggregation trading model enables scale effects, addressing the challenges faced by individual distributed power sources in participating in the market.

Wu emphasized that the primary distinction between the two aggregation trading models currently available is whether the distributed aggregator and the distributed power source can settle with the grid. For instance, in the model represented by Jiangsu (Model 1), the grid only settles with the distributed power source, while the aggregator does not participate in settlements. In contrast, Model 2, represented by Anhui, allows the grid to settle with both the distributed power sources and the aggregators. This creates an active trading space for aggregators. For example, if the benchmark electricity price is 391 RMB/MWh, and the price negotiated between the aggregator and the distributed power source is 400 RMB/MWh, but the actual trading price reaches 410 RMB/MWh, the settlement space for the aggregator in Model 2 would be between 410 and 400 RMB/MWh. In Model 1, all trading space is settled directly between power generation companies, leading to a settlement price equal to the trading price, while in Model 2, the aggregator is responsible for any deviation assessments.

Wu further explained that Model 1 is simpler, placing a lower responsibility on the aggregator and setting lower requirements, thus allowing more general companies or project companies to act as aggregators. Conversely, to qualify as an aggregator in Model 2, companies must meet the management requirements for electricity sales companies, establishing the aggregator as a genuine operating entity. Model 1 will eventually evolve into Model 2.

Regarding how distributed power aggregation trading can benefit terminal enterprises, Wu outlined three key aspects:

1. Facilitating Local Consumption of Distributed Power: Projects in Shandong and Jiangsu support local consumption models, such as green electricity trading and virtual power plants, fostering the integration of new energy with industry. This reduces transmission losses and enhances energy utilization efficiency.
2. Increasing Green Electricity Supply: Once power sources enter the market, many projects are forced to accept prices passively, which does not constitute green electricity trading. Only aggregation or direct trading can be classified as such, and direct trading by distributed power sources is often challenging. Therefore, aggregation trading effectively increases the supply of green electricity.
3. Enhancing the Green Image and Market Competitiveness of Energy-Using Enterprises: As carbon tariffs and energy consumption dual controls expand, high-carbon enterprises may face increased costs. Green electricity aggregation trading helps companies transition early, reducing future carbon emission costs and risks while improving their ESG performance.

Finally, Wu described Baobi New Energy as an industry-leading investment enterprise with a diverse business scope that includes photovoltaic storage, wind power, virtual power plants, and integrated energy solutions. The company offers comprehensive services from the full lifecycle management of distributed power sources to user matching, leveraging intelligent tools and artificial intelligence technology to empower electricity trading. She emphasized that distributed aggregation trading is not only an innovation in business models but also a crucial mechanism for energy transformation. Through aggregation trading, the trading capabilities of energy sources can be enhanced, creating scale effects that meet customer electricity purchasing needs, lower electricity costs, and improve environmental asset value, thereby helping enterprises fulfill their ESG requirements and aiding in the stable operation of the grid.