In August 2024, the National Development and Reform Commission (NDRC), National Energy Administration (NEA), and National Data Administration (NDA) jointly released the “Action Plan for Accelerating the New Type Power System (2024–2027)”. This action plan is designed to advance China’s energy transition and align it with national goals to achieve carbon peaking and neutrality (“dual carbon” targets). It addresses pressing challenges in power system transformation, such as grid modernisation, renewable energy integration, and energy security.
The action plan identifies the urgent need to modernise the power system to manage the growing complexity of an energy system increasingly dominated by renewable energy and power electronics. It aligns with China’s broader goals to create a clean, low-carbon, secure, and efficient energy system.
The primary focus of the action plan is to accelerate the transformation of China’s power system to support a high proportion of renewable energy while ensuring grid reliability, security, and stability. It reflects a strategic choice to support energy security and achieve long-term decarbonisation goals while addressing key challenges posed by the transition. The action plan also consolidates prior efforts by the NDRC and NEA, and other authorities over recent years to address these challenges, including the publication of guiding documents like the “New Type Power System Development Blue Book” and convening forums on power system stability under new conditions.
The plan outlines nine major initiatives for the period 2024-2027, each targeting specific challenges in the power system transformation:
- Power system stability: The rapid growth of renewable energy increases grid complexity, making stability a top priority. The action plan prioritises upgrading grid infrastructure, integrating new energy sources, and deploying advanced technologies to ensure stable grid operation.
- Large-scale renewable energy transmission: To meet rising renewable energy demands, the plan calls for optimising existing transmission lines and building new channels for higher shares of renewables. This is essential to ensure effective delivery of electricity generated from large-scale wind and solar farms, located in remote desert regions.
- High-quality distribution network development: As distributed generation and the adoption of electric vehicle (EV) take up speed, the distribution grid faces new pressures. The action plan focuses on updating standards, strengthening grid resilience, and ensuring networks are equipped to handle distributed energy, EVs and extreme weather events.
- Intelligent dispatch system: A more complex energy mix demands smarter grid management. The action plan emphasises building an intelligent dispatch system to balance supply and demand dynamically, integrating energy sources, storage, and load management.
- Enhancing renewable energy system performance: To improve the reliability of renewable energy, especially during peak demand periods, the plan encourages the development of more “system-friendly” renewable power stations, microgrids, and projects that enhance synergy between data and power systems.
- Coal power modernisation: Despite the rise of renewables, coal power remains a key element of China’s energy system. The action plan outlines modernisation of coal plants to make them more flexible, efficient, and low-carbon by integrating technologies such as carbon capture and storage (CCS).
- Optimising energy storage: Energy storage is critical for balancing intermittent renewable sources. The action plan supports the expansion of both traditional and new energy storage technologies to improve system flexibility and enable more effective renewable integration.
- EV charging infrastructure expansion: With the rapid growth rate of EV, enhancing the charging network is essential. The plan encourages greater integration of EV batteries as energy storage resources within the grid, expanding charging facilities while optimising their interaction with grid operations.
- Demand-side coordination: Demand-side response programs are essential for grid flexibility. The plan calls for broader implementation of these programs, including the establishment of virtual power plants that use flexible load, storage, and generation to balance the grid.
To ensure the successful execution of these initiatives, the NDRC, NEA, and NDA are set out to establish coordination mechanisms, encourage the participation of diverse stakeholders, and enhance evaluation and feedback systems. Provincial energy authorities and relevant enterprises are tasked with specific responsibilities to ensure smooth execution, tailoring efforts to local needs and conditions.
This approach aims to further enhance China’s power system transformation, securing energy supply, promoting renewable energy integration, and advancing China’s climate and energy goals.
