Paving the Way for Zero-Carbon Urban Grids: Insights from the 2025 Energy Transition Forum

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

Amidst the global energy transition, the zero-carbon development of urban power grids has emerged as a critical area for achieving the “dual carbon” goals. Recently, the 2025 International Forum on Energy and Power Transition hosted a technical seminar focused on “Zero-Carbon Development of Urban Power Grids,” bringing together representatives from domestic and international energy companies, international organizations, and industry experts to delve into multifaceted pathways for urban power grid zero-carbon development. The discussions centered on the utilization of new energy, technological innovation, policy mechanism improvement, carbon management, and emission reduction measures, collaboratively 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 growth in urban power grids. In recent years, the global demand for new energy has been on the rise, with China standing out in this sector as its installed capacity continues to grow, providing significant momentum for global new energy development.

Since China set its “dual carbon” goals in 2020, the new energy industry has experienced explosive growth. According to Shu Yinbiao, President of the Chinese Society for Electrical Engineering, by the end of 2024, China’s installed capacity for new energy is expected to reach 1.45 billion kilowatts, maintaining its position as the world’s largest for several consecutive years and laying a solid foundation for the zero-carbon transition of urban power grids.

Data from the International Energy Agency (IEA) indicates that in 2023, global renewable energy generation increased by approximately 10% year on year, with China contributing over 40%. In February of this year, the National Energy Administration released the “2025 Energy Work Guidance,” which proposed raising the share of non-fossil energy power generation to about 60% and increasing non-fossil energy’s share of total energy consumption to around 20%, further promoting the application of new energy in urban power grids.

Additionally, the large-scale integration of new energy places higher demands on the adaptability of urban power grids. Ouyang Changyu, Deputy Chief Engineer of State Grid Corporation of China, believes that the adaptability of distribution networks to distributed energy should be enhanced, and a multi-energy collaborative planning mechanism should be established to ensure seamless integration between distributed and traditional energy sources, thereby improving the efficiency and stability of the entire power grid system.

Chan Lok Man, General Manager of Engineering Construction at Hong Kong Electric Company, stated that the company is gradually phasing out coal power, increasing the proportion of natural gas generation, and actively promoting the construction of photovoltaic and offshore wind power. This adjustment of the energy structure helps reduce carbon emissions and provides new momentum for sustainable development.

Andrew Grumack, Global Energy Lead at CDP and Chair of the RE100 Technical Advisory Group, noted that while China is leading globally in the electrification process related to renewable energy, the power structure still heavily relies on coal power, presenting challenges for the integration of renewable energy due to uneven regional access. Further optimization of the grid structure is necessary to enhance the capacity for new energy integration.

According to Huang Haoming, Chief Operating Officer of Sembcorp Industries in Singapore, the country’s transition relies on a diverse energy mix and regional cooperation, focusing on green hydrogen networks, cross-border green electricity trading, and policy innovations to achieve the goal of net-zero emissions by 2050. This will be propelled by maximizing solar energy utilization, deepening regional grid interconnections, developing low-carbon alternative energy, and optimizing carbon emissions from natural gas.

Technological Empowerment: Digitalization and Innovation Leading Grid Transformation

In the wave of energy transition, technological innovation remains a vital force driving industry development. For the zero-carbon growth of urban power grids, technological innovation not only enhances energy utilization efficiency but also provides robust support for intelligent management of the grid. The rapid advancement of digital technologies presents new opportunities for the transformation and upgrading of power grids, making it a necessary option in energy technology transition.

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

“Focusing on technological innovation and collaborating with various parties to conduct research on key technologies for hydrogen-electric coupling, system efficiency, costs, and market trends will accelerate the development of new energy technologies. This collaborative model not only speeds up the innovation process but also provides possibilities for the widespread application of new energy technologies,” shared Rudolph Coley da Cunha, Director of Regulations and Energy Management at CPFL Brasil.

Schneider Electric is lowering its emissions by adopting environmentally friendly equipment that replaces sulfur hexafluoride, optimizing grid structure, and implementing AI-driven scheduling automation systems. Wang Zhao, Senior Architect in Schneider Electric’s Grid Industry, explained that these methods 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, stated that leveraging the technological advantages of the State Grid to conduct forward-looking joint assessments of grid technologies promotes the export of “soft power” such as technology, norms, and standards, contributing to global energy technology advancement and providing a Chinese solution for global energy transition.

Chen Bin, spokesperson for State Grid Beijing Electric Power, mentioned that measures like “clean coal, alternatives, green energy, energy conservation, and collaboration” are accelerating the establishment of a new power system in large cities, setting a Beijing model for energy transition that can be replicated. By 2025, electricity imported from green sources to Beijing is expected to exceed 40 billion kilowatt-hours, with green electricity’s share of total electricity consumption rising to 35%, continuously providing strong momentum for the capital’s high-quality zero-carbon development.

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

In achieving zero-carbon development of urban power grids, improving policy and market mechanisms is indispensable. Policy support provides a clear direction and strong backing for industry development, while innovations in market mechanisms can stimulate companies’ internal motivation and innovative capabilities.

To promote the zero-carbon development of urban power grids, it is essential to enhance relevant policy mechanisms, including collaborative planning, safety assurance, and “electricity-carbon-certificate” market coordination mechanisms. Ouyang Changyu from State Grid Corporation of China suggested establishing a safety risk management mechanism and enhancing emergency coordination to ensure stable operation and secure power supply for urban power grids.

Previously, the National Development and Reform Commission and the National Energy Administration jointly released guidelines for improving the system and policies for low-carbon energy transition, proposing the establishment of a collaborative development mechanism for distributed energy to drive 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 trend of global carbon pricing. The implementation of the European Union’s Carbon Border Adjustment Mechanism (CBAM) has profoundly impacted China’s industrial sector. He advised businesses to promptly implement carbon reduction measures during the CBAM transition period to lower carbon emissions per product and invite EU-authorized agencies for verification to meet regulatory requirements after the transition period.

Green electricity procurement is currently 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 Grumack from CDP noted that applying supply chain reduction models can effectively lower corporate carbon emissions while promoting the green transformation of the entire industry chain.

WRI researcher Zhang Wenquan emphasized that the “Greenhouse Gas Accounting System” is the core framework for global corporate carbon accounting, with scope 3 emissions being a crucial area for corporate reduction efforts. The power sector should pay attention to updates in international standards to grasp changes in global carbon accounting rules, facilitating the zero-carbon transition of the grid in alignment with international standards. By aligning with these international standards, companies can further enhance their carbon management capabilities and promote the collaborative advancement of global energy transition.

Currently, the zero-carbon development of urban power grids is making significant strides by collaboratively advancing in areas such as new energy utilization, technological innovation, policy mechanism enhancement, and carbon management. Through collective efforts within the industry and fostering international cooperation and communication, urban power grid zero-carbon development has made solid progress, contributing to the achievement of global “dual carbon” goals and the establishment of a clean, low-carbon, safe, and efficient energy system.