Support for Energy Storage Applications in Distribution Networks and Promotion of Energy Storage Participation in the Power Market! The first legal document for the construction of a new power system in the country has been released!
On September 29, the Industrial and Information Technology Bureau of Nansha District, Guangzhou, issued a decision to comprehensively promote the construction of a new power system demonstration zone, ensuring high-quality economic and social development in Nansha. The decision emphasizes the acceleration of new energy storage development. It calls for the promotion of the annual plan for new energy storage construction projects based on the recommended layout list and connected capacity of new energy storage stations. The implementation of energy storage stations in areas such as industrial parks, data centers, load centers, 5G base stations, and charging facilities should be expedited. Furthermore, it supports the application of new energy storage in distribution networks to enhance the stability of power system operations.
The decision also encourages energy storage stations to participate in the power market, creating greater opportunities for user-side energy storage development, expanding the application of hydrogen energy in the industrial sector, and improving hydrogen supply capabilities. It aims to cultivate new operational entities for virtual power plants. There will be increased support for the scaled development of virtual power plants, enabling enterprises to legally engage in investment, development, and operational management while participating fairly in various power market activities or demand response to gain corresponding benefits. Virtual power plants are also encouraged to provide energy-saving services, energy data analysis, energy solution design, and carbon trading-related services, fostering innovative business models and expanding revenue channels.
The integration of smart distribution network planning with urban planning will be promoted to support the needs for distributed renewable energy, charging infrastructure, and diverse load access. High-level construction of intelligent distribution systems in urban centers, industrial parks, and rural areas will enhance the grid’s flexible regulation capabilities and local absorption levels of renewable energy. The application of advanced technologies such as artificial intelligence, big data, and the Internet of Things will strengthen key core technology breakthroughs in the grid, creating an innovative platform for the integration of intelligence in the energy and power sector. The ability to analyze electricity quality issues and the overall governance level will be enhanced, providing comprehensive electricity solutions.
The construction of supporting charging infrastructure will be intensified, creating a charging network with urban, road, and rural layouts to promote large-scale applications of vehicle-to-grid interactions.
The decision from Nansha represents the first significant initiative by a county-level people’s congress in China focused on the construction of a new power system. It provides a strong legal guarantee for developing Nansha as a new power system demonstration area while optimizing the business environment through legal reforms. As the global energy sector undergoes structural transformation alongside technological revolutions, building a new power system is vital for advancing new industrialization and high-quality economic development.
The decision outlines ten key areas and systematically plans the “Nansha Path” for establishing a new power system demonstration area that is “clean, low-carbon, secure, abundant, economically efficient, coordinated in supply and demand, and flexible and intelligent.” This comprehensive approach covers critical energy supply aspects, providing solid legal support for securing a leading position in global green and low-carbon development.
The decision also emphasizes the need for a high-standard construction of a new power system demonstration zone, advocating for an integrated approach to traditional and renewable energy development. It calls for systematic planning of natural gas power generation projects and supports low-carbon upgrades of coal-fired units, enhancing the overall energy security and regulatory capabilities.
In addition, Nansha aims to establish a robust, flexible, and intelligent modern power grid capable of withstanding extreme weather conditions while ensuring optimal supply and demand management. The integration of smart distribution networks with urban planning will ensure that they meet the demands of distributed renewable energy and charging infrastructure while promoting local electricity absorption.
Moreover, the decision encourages a shift toward electric energy consumption in key sectors like industry, transportation, and construction, supporting the electrification of terminal energy use to facilitate industrial restructuring and manufacturing upgrades. It advocates for the development of charging networks that cater to urban, road, and rural needs, ensuring that charging infrastructure is easily accessible.
Lastly, Nansha will drive the accelerated development of new energy storage and foster the establishment of new operational entities in virtual power plants. The comprehensive measures outlined in the decision are expected to significantly enhance market innovation, improve government governance efficiency, and boost investor confidence, contributing to the achievement of carbon neutrality goals and the advancement of the energy revolution.
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