Smart grid, providing robust power support.

　　In recent years, China’s power system has accelerated its transition toward accommodating large-scale, high‑proportion renewable energy. In the face of challenges posed by the low‑carbon energy transition, integrating, upgrading, and strengthening the grid have become essential priorities. Looking ahead, we will further develop distributed smart grids, leveraging advances in key technologies and innovative business models to foster more coordinated development among generation, transmission, distribution, load management, and energy storage.

　　On May 25, the Guangdong–Hong Kong–Macao Greater Bay Area DC back-to-back grid project was officially put into operation, and this year it is expected to support no less than 188.3 billion kWh of “West-to-East power transmission.” On June 30, Zhejiang’s Changlongshan Pumped Storage Hydropower Station—the largest in East China—was fully commissioned, with this massive “power bank” undertaking grid‑level functions such as peak shaving and valley filling. On July 1, the Baihetan–Jiangsu Ultra-High-Voltage DC transmission project, spanning 2,080 kilometers, was also brought online…

　　Since the beginning of this year, China has been steadily advancing its power‑infrastructure development. At the 11th meeting of the Central Financial and Economic Commission, it was emphasized that efforts should be intensified to build network‑based infrastructure in transportation, energy, water conservancy, and other sectors, with particular focus on interconnecting systems, filling gaps in existing networks, and strengthening supply chains to enhance overall network efficiency. As a vital driver of economic activity and a key component of the energy transition, what progress has been made in connecting, completing, and reinforcing power‑network links? And in which areas should priority be given going forward? Our reporter conducted interviews to find out.

　　The foundation for ensuring a reliable power supply continues to strengthen, making infrastructure interconnection, network supplementation, and supply-chain reinforcement indispensable choices.

　　In recent years, China’s power infrastructure has maintained a moderately forward‑looking development trajectory, accelerating the transformation of the power system to accommodate large‑scale, high‑proportion renewable energy.

　　The installed power capacity and the scale of the “West-to-East Power Transmission” project continue to expand. At present, China’s total grid‑connected generating capacity exceeds 2.4 billion kilowatts, with its installed capacity for wind, solar, hydropower, and biomass power consistently ranking first in the world for many years. Nationwide, 33 ultra‑high‑voltage AC and DC transmission lines have been completed, and the capacity of the “West-to-East Power Transmission” network has surpassed 290 million kilowatts.

　　The level of rural electricity supply has improved markedly. By 2020, every county in the country had been connected to the national grid, and all villages within the grid’s coverage area were provided with access to power for industrial use. Rural power supply capacity and reliability have continued to strengthen.

　　China’s capacity for innovation in power‑related technologies has been rapidly enhanced. At present, the country has established a comprehensive industrial chain for manufacturing clean‑energy equipment, including hydropower, nuclear power, wind power, and solar power. In the first half of the year, China’s total exports of photovoltaic products reached approximately US$25.9 billion, up 113.1% year on year.

　　Despite the steadily strengthening foundation for ensuring electricity supply, periods of tight supply and regional shortages have persisted. During the 14th Five-Year Plan period, China’s electricity demand and consumption are expected to continue rising, necessitating further enhancement of power‑supply reliability. At the same time, as the energy sector transitions toward low carbon, challenges remain, including the nascent stage of new‑type power systems and their limited capacity to accommodate and integrate large‑scale, high‑proportion renewable energy. To address these shortcomings, interconnecting, upgrading, and reinforcing the power‑grid infrastructure has become an imperative.

　　According to officials from relevant departments of the National Energy Administration, in terms of power infrastructure development, “network interconnection” primarily involves expanding ultra-high-voltage transmission corridors; “network supplementation” focuses on optimizing and refining the main grid layout, upgrading urban distribution networks and building resilient local grids, developing distributed smart grids, and improving power infrastructure in rural and remote areas; and “supply-chain strengthening” entails enhancing the safety and intelligence of power infrastructure, making the power system more flexible and intelligent, and fostering coordinated interaction among generation, grid, load, and storage. “Accelerating the interconnection, supplementation, and strengthening of the power infrastructure is an essential requirement for safeguarding national energy security and achieving the carbon peak and carbon neutrality goals as scheduled.”

　　Focusing on network connectivity, network supplementation, and supply-chain strengthening in infrastructure development will also help leverage investment-driven growth. In June, State Grid Corporation of China announced that this year’s grid investments will exceed RMB 500 billion, reaching a record high, and are expected to catalyze over RMB 1 trillion in broader social investment.

　　Enhance the intelligence of the power grid to ensure a reliable, stable, and cost-effective electricity supply.

　　In Taiping Town, Xinxing County, Yunfu City, Guangdong Province, a “white house” stands tall. This is the “intelligent brain” of China Southern Power Grid’s 10-kV distributed grid—the energy‑storage switch station. It enables the distributed grid to switch flexibly among outage mode, grid‑connected operation, and islanded operation, while also functioning as a large “power bank,” capable of storing 2 megawatts of electricity. According to reports, last year the local area completed such a medium‑voltage distributed grid integrating generation (hydropower), grid, load, and storage, which has achieved full consumption of small hydropower and reduced abandoned hydropower by approximately 43%.

　　The 11th meeting of the Central Financial and Economic Affairs Commission proposed developing a distributed smart grid. How should we understand a distributed smart grid, and what role does it play?

　　According to officials from relevant departments of the National Energy Administration, the distributed smart grid takes the power grid as its foundational platform and, by enhancing the grid’s level of intelligence, proactively accommodates the large-scale development of distributed renewable energy sources.

　　On the supply side, it can accommodate the integration of distributed energy resources into the grid, meeting local electricity demand and ensuring a continuous, reliable power supply for consumers.

　　Du Zhongming, President of the Electric Power Planning & Design Institute, stated that China’s development and utilization of new energy are characterized by a dual approach—combining centralized and distributed systems. The “large‑scale clean energy base plus ultra‑high‑voltage grid” model primarily addresses the challenge of transmitting electricity over long distances; however, such long‑distance transmission is constrained by factors including investment costs, land availability, and environmental considerations. To advance the large‑scale, high‑proportion deployment of new energy, it is also essential to leverage distributed generation, capitalizing on its proximity to load centers and its ability to facilitate local consumption, thereby realizing the goal of “drawing power from right beside us.”

　　On the other hand, on the load side, it can support the integration of diverse load entities—such as electric vehicle charging stations, advanced energy storage systems, and virtual power plants—thereby meeting diversified “plug-and-play” connectivity requirements.

　　“New energy generation is characterized by intermittency, volatility, and randomness. As the share of new energy continues to rise, maintaining grid balance becomes increasingly challenging, and the shortage of flexible ancillary resources in traditional power grids has become more pronounced,” said Du Zhongming. He added that leveraging a distributed smart grid to finely regulate end‑user consumption is akin to creating an additional “power plant,” and this approach will serve as a key mechanism for ensuring reliable, stable, and cost‑effective electricity supply in the new‑type power system.

　　“Currently, we’re in peak‑demand hours, so we recommend charging during the low‑price off‑peak period around noon.” At 10 a.m., Mr. Zhang, a faculty member at the Hangzhou Institute for Advanced Study of the University of Science and Technology of China, had planned to charge his electric vehicle. Following the recommendation provided by the charging app, he managed to cut his electricity costs by roughly 70 percent. Last year, State Grid Hangzhou Power Supply Company commissioned an integrated “photovoltaic‑storage‑charging” smart‑collaboration project on campus, which includes distributed photovoltaic systems, an energy‑storage station, three fast‑charging stations, twenty slow‑charging stations, and a comprehensive smart control system for photovoltaic‑storage‑charging.

　　Data from the National Energy Administration show that, in recent years, China’s distribution network has undergone further structural optimization, with a significant increase in its level of intelligence and a steady enhancement in its capacity to accommodate distributed energy resources, thereby fully ensuring the flexible integration of over 100 million kilowatts of various types of distributed generation.

　　Developing a distributed smart grid also requires concerted efforts in key technologies and business models.

　　The experts interviewed believe that advancing distributed smart grids requires concerted efforts across multiple fronts, including upgrading the “hardware” of key technologies and refining the “software” of business models.

　　At the level of key technologies, Du Zhongming argues that there is an urgent need to develop coordinated control technologies capable of accommodating the integration of massive distributed energy resources and diverse loads, intelligent grid dispatch and operation technologies, as well as critical technologies for advancing the digitalization and intelligence of distributed smart grids.

　　As of the end of June this year, the nationwide stock of battery electric vehicles reached 8.104 million, and distributed photovoltaic capacity stood at 127 million kilowatts—equivalent to the installed capacity of more than five Three Gorges hydropower stations. “Electric vehicle charging demand is highly variable: daytime solar generation can meet most of the electricity load, but at night, solar output drops to zero. Coupled with a sharp surge in EV charging demand, maintaining grid balance and ensuring safe, stable system operation during the evening peak will face significant challenges,” said Du Zhongming. He recommended establishing an integrated technical support framework for distribution and end‑use electricity, thereby bridging the “last mile” between the distribution network and its customers.

　　At the business‑model level, it is necessary to refine the pricing mechanisms and market rules for “behind‑the‑meter electricity sales” — that is, the market‑based trading of distributed generation. “Behind‑the‑meter sales help promote local consumption of renewable energy, but the current standards for collecting transmission‑network fees remain unclear. How to balance the interests of all parties involved in the transactions and those of the grid operators, and how to improve the tariff framework to support self‑consumption and local utilization of distributed clean‑energy generation, both require further exploration,” said Du Zhongming.

　　An official from a relevant department of the National Energy Administration told reporters that, going forward, the agency will take the development of a new‑type power system as its guiding principle, drive upgrades to the traditional grid’s structure, technologies, and functions, significantly enhance the power supply reliability and flexible interactivity of distributed smart grids, and promote more coordinated development among generation, transmission, distribution, load, and energy storage.

　　First, leverage the role of planning by strengthening the formulation of distributed smart grid plans and advancing top-level design. Second, in regions with favorable demand‑response resources and abundant renewable energy generation potential, use distributed smart grids as a foundation to promote the integration of distributed renewable power through demand response tailored to local conditions. Third, accelerate research on distributed smart grid technologies, bringing together the strengths of research institutes, universities, and enterprises to achieve breakthroughs in core technologies.