New Policy Implementation: Enhancing Distributed Generation in China’s Energy Sector

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New Energy Policy Implementation is currently underway, focusing on the distributed energy model in the context of China’s energy transition. On April 14, 2025, at 15:59, it was reported by China Energy Network that under the significant backdrop of the energy transition, the distributed energy model has become a critical force in the new energy sector, actively responding to the deepening energy transformation.

Recently, the National Energy Administration has been engaged in discussions regarding the Regulatory Measures for the Development of Distributed Energy Power Generation (referred to as Management Measures), clarifying issues related to the implementation of these measures. It has been confirmed that prior to the release of the Management Measures, efforts have been made to establish a framework for “self-generation and self-consumption” of electricity. This framework is expected to facilitate large-scale projects for distributed energy power generation before May 1, 2025, which will require renewed efforts in regulatory approval and connection agreements.

In the context of the energy transition, the distributed energy model is positioned as a key player in the new energy sector and is actively responding to the evolving landscape. Recently, the National Energy Administration has been addressing issues related to the Management Measures, confirming that prior to the release date of the Management Measures, efforts have been made to establish a framework for “self-generation and self-consumption” of electricity. This framework will facilitate large-scale projects for distributed energy power generation before May 1, 2025, which will require renewed efforts in regulatory approval and connection agreements.

Since the release of the Management Measures, there has been significant attention from enterprises engaged in distributed energy, particularly in light of the ongoing transition in energy policy. Currently, market conditions are showing signs of change, with distributed energy models poised for new developments in the upcoming new energy system.

According to analysts, the implementation of the Management Measures will be a crucial turning point for the development of distributed energy enterprises. It is expected that this policy will further stimulate market demand, which has already begun to exhibit signs of recovery and price fluctuations as the market responds to new regulations.

In the short term, the focus will be on accelerating the development of distributed energy projects, particularly in the context of managing supply and demand in response to regulatory measures. Efforts will also be made to strengthen the framework for the electricity market, ensuring that distributed energy resources can effectively participate in the energy market.

Moreover, the dynamics of the energy market are expected to shift, with distributed energy systems increasingly integrated into the broader energy framework. The emphasis will be on creating a balance between supply and demand, utilizing innovative technologies, and enhancing energy efficiency across the board.

As we move forward, it is crucial to foster a collaborative environment among various stakeholders in the energy sector, ensuring that distributed energy resources can effectively contribute to the overall energy landscape. This includes enhancing regulatory frameworks, promoting healthy competition, and driving sustainable development in the energy sector.

This policy implementation reflects a commitment to advancing distributed energy systems, paving the way for a robust and sustainable energy future.

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