China aims to boost renewable energy use and manage demand as part of power modernisation plan

BEIJING: China’s state planner revealed details of a three-year plan to modernize its energy system on Tuesday as the country seeks to boost its use of renewable energy sources and ease the burden of growing energy demand on the national grid.

The 2024-2027 plan, launched by the National Reform and Development Commission, aims to help China reach peak carbon dioxide emissions by 2030. It also includes guidelines for upgrading transmission and distribution systems, the planning body said.

The plan sets goals for demand response, balancing power grid demand by encouraging consumers to use electricity during off-peak periods. A need underscored by record-high temperatures that have strained grids in eastern China in recent days.

Under the plan, demand response capacity should reach 5% of maximum electrical load. For the first time, a more ambitious demand response target was also set to reach 10% of maximum load in some areas, although it did not specify which areas.

The plan focuses on building a more flexible power grid that can better manage the transition to intermittent renewable energy sources, said Xuewan Chen, an energy transition analyst at LSEG.

But a key aspect that is not mentioned in the document is the reform of the energy market and the creation of a competitive energy market that will enable more efficient allocation of resources, she added.

Currently, transactions are mainly based on medium and long-term contracts.

China’s long-distance power transmission projects, which typically carry electricity from large power plants in western China to cities in the country’s east, should use more renewable energy, according to the NDRC plan.

It also called for developing standards for next-generation coal-fired power plants, reducing emissions from coal-fired power plants and blending coal with lower-carbon fuels.

Other plans include improving the country’s electric vehicle charging infrastructure, piloting new grid schedules in areas with high demand for electric vehicle charging, and upgrading battery storage that has been installed at renewable power plants but has not been used efficiently. – Reuters