National Energy Administration Accelerates Development of Virtual Power Plants and Supports Private Investment in Energy Storage and Smart Microgrids

The National Energy Administration has announced a push to accelerate the development of virtual power plants and to support private enterprises in investing in energy storage and intelligent microgrids. On April 28, the Administration issued a notice titled “Measures to Promote the Development of the Private Economy in the Energy Sector,” which outlines several key initiatives.

The document emphasizes the importance of fostering new business models in the energy sector. It aims to expedite the development of virtual power plants and facilitate the orderly advancement of green electricity direct connection models. Additionally, it calls for the formulation of policies that support the healthy development of intelligent microgrids and large-scale charging infrastructure, while encouraging private enterprises to invest in new energy technologies, including energy storage, virtual power plants, and charging facilities.

The notice also encourages private enterprises to actively participate in the Belt and Road Initiative, engaging in cooperative projects related to wind energy, photovoltaics, hydrogen energy, and energy storage to enhance their international competitiveness. The Administration plans to utilize domestic and international think tank resources to promote relevant national energy policies to energy companies, assisting private enterprises in expanding their overseas markets.

Key measures proposed include:

1. Support for Infrastructure Investment: The Administration encourages private enterprises to invest in energy infrastructure, including nuclear power projects and renewable energy facilities, as well as oil and gas reserves.
2. Development of New Energy Business Models: It aims to accelerate the growth of virtual power plants and green electricity connection models, while supporting investments in energy storage and smart microgrid technologies.
3. Encouragement of Innovation: The Administration promotes deep engagement from private enterprises in significant technological innovations in the energy sector, urging collaborations between private firms and national laboratories.
4. Transformation and Upgrading of Private Energy Enterprises: Support is provided for the digital transformation of traditional energy companies, particularly in areas like coal mining and power plants.

The document also outlines measures to ensure fair market participation for private enterprises:

1. Improving Market Access: The Administration aims to facilitate easier entry for private enterprises into the oil and gas market and optimize licensing processes.
2. Enhancing Access to Production Factors: New policies will be developed to lower electricity service costs for private enterprises and provide transparent information to aid decision-making.
3. Regulating Market Order: It is essential to ensure fair competition and rectify any violations in market conduct, providing a conducive environment for private enterprises.

Furthermore, the Administration is committed to optimizing energy investment approval processes, ensuring that private enterprises’ legal rights are protected, and supporting their high-quality participation in international initiatives.

In conclusion, the National Energy Administration is taking significant steps to promote the private sector’s role in the energy transition, focusing on innovative technologies and collaborative projects to achieve a greener and more efficient energy landscape.