Interpretation of the Guiding Opinions on High-Quality Development of Distribution Networks
As a critical energy infrastructure, the distribution network plays a pivotal role in ensuring reliable power supply, supporting economic and social development, and improving people’s livelihoods. Particularly under the “dual carbon” goals, its supportive function has become even more pronounced. It serves as the platform for integrating distributed energy resources and electric vehicle charging facilities, and is a key enabler for the comprehensive and efficient utilization of diverse distributed energy sources, as well as for electricity consumers to achieve energy conservation and emission reduction. In recent years, extreme weather events such as typhoons, rain, snow, and freezing conditions have frequently caused power outages, highlighting the inadequacy of the distribution network’s capacity to deliver safe and reliable power.
Release date:
2026-03-22
Source:
As a critical energy infrastructure, the distribution network plays a pivotal role in ensuring reliable power supply, supporting economic and social development, and improving people’s livelihoods. Particularly under the “dual carbon” goals, its supportive function has become even more pronounced. It serves as the platform for integrating distributed energy resources and electric‑vehicle charging facilities, and is a key enabler for the comprehensive and efficient utilization of diverse distributed energy sources, as well as for electricity consumers to achieve energy conservation and emissions reduction. In recent years, extreme weather events such as typhoons, rain, snow, and freezing conditions have frequently caused power outages, highlighting the inadequacy of the distribution network’s capacity to deliver safe and reliable power. Meanwhile, the rapid expansion of distributed renewable energy, the growing scale of electric vehicles, and the ongoing advancement of the electricity market are all placing increasingly stringent demands on the development of the distribution network. From equipment and grid structure to planning and operation, and from system management to market integration, the distribution network faces a host of challenges.
First, the foundation for ensuring reliable supply still needs to be further strengthened. Over the past two decades, continuous investment and extensive upgrades have significantly enhanced both the capacity and reliability of China’s distribution networks. In particular, in many developed urban areas, the operational performance of distribution systems has reached internationally advanced levels. However, it is also important to recognize that in certain towns—especially older residential neighborhoods—and in rural regions, distribution network structures remain fragile, with low supply reliability, substantial latent operational risks, inadequate disaster‑resilience, and urgently needed improvements in equipment efficiency and smart‑grid capabilities.
Second, the grid’s capacity to accommodate new energy sources and emerging business models remains inadequate. In recent years, distributed photovoltaic (PV) systems have experienced explosive growth in many regions of China, leading to severe reverse‑overloading on distribution‑network lines and transformers, as well as pronounced voltage‑violation issues. As a result, some areas have been forced to slow the pace of PV deployment. Meanwhile, electric vehicles (EVs) in China have entered a phase of rapid expansion: not only are EV numbers rising swiftly, but demand for fast charging is also becoming increasingly urgent, posing significant challenges to distribution‑network operations, particularly with high‑power, short‑duration charging. Concurrently, as distributed PV and EVs continue to proliferate, the installed capacity of energy storage in distribution systems is expanding rapidly. However, fully leveraging the role of energy storage and effectively addressing distribution‑network constraints through it will require ongoing experimentation and exploration. With the widespread adoption of cutting‑edge technologies such as microgrids, AC/DC hybrid distribution networks, and distributed smart grids, the future landscape of distribution networks is poised for profound transformation. Enhancing the carrying capacity of distribution networks and supporting China’s energy transition will inevitably become a core mission for the sector going forward.
Third, the various stages of distribution‑network development require strengthened coordination and seamless integration. The distribution grid is characterized by a wide variety of equipment types and large quantities, with complex interdependencies across all phases. Under the new circumstances, it is essential to further enhance end‑to‑end management—spanning from distribution‑network planning and project investment oversight to construction, dispatching and operation, and maintenance and service. In planning, it is necessary not only to ensure coordinated planning for renewable energy, electric vehicles, energy storage, and the distribution‑network infrastructure, but also to align with urban–rural master plans and territorial spatial plans, while simultaneously integrating with other infrastructure networks. In project investment management, we must both increase investment by grid operators and encourage diversified stakeholders to invest in the distribution network, actively innovating a range of financing mechanisms. During construction, multi‑agency coordination and synergistic collaboration with municipal engineering projects are indispensable. In terms of dispatching and operational mechanisms, we should fully leverage user‑side resources to facilitate the grid’s integration of renewable energy, make comprehensive use of emerging technologies such as microgrids and virtual power plants, and enable interactive supply‑demand dynamics among electricity users, vehicle‑to‑grid interactions involving electric vehicles, and coordinated source‑load‑storage operations within the distribution network. Moreover, we must harness market mechanisms effectively, ensuring both the efficient utilization of renewable energy and the safe, reliable operation of the distribution network.
We are pleased to note that, in response to the aforementioned issues, the National Development and Reform Commission and the National Energy Administration have issued the “Guiding Opinions on High-Quality Development of Distribution Networks in the New Context” (hereinafter referred to as the “Opinions”), which, at the national level, lays out measures to advance the construction, renovation, and high-quality development of distribution networks. The “Opinions” set forth guiding principles and concrete initiatives that not only articulate the goals and mission for the future development of next‑generation distribution networks but also reflect the unique characteristics inherent in the evolution of distribution networks themselves, making them highly implementable and poised to play a pivotal role in China’s efforts to build and develop such networks.
The distribution network is a capital‑intensive infrastructure, and its structural transformation will require a relatively long‑term process. To ensure the effective implementation of the “Opinions,” the following measures are essential: First, strengthen planning‑driven guidance. Planning serves as the foundation for distribution‑network development; without a solid foundation, even minor disturbances can lead to widespread instability. Enhanced planning can significantly improve the investment efficiency of distribution‑network construction and facilitate quality‑and‑efficiency gains during the transition from the current distribution‑network model to a new‑type configuration. Second, uphold a systems‑thinking approach. As the “last mile” of power supply, the distribution network directly serves end‑users, with a long value chain and numerous interconnections. It is crucial to coordinate and integrate diverse resources and factors, thereby better meeting user needs throughout the evolution of the new‑type distribution network. Third, drive innovation and breakthroughs. The new‑type distribution network will undergo profound transformations in system architecture, operational modes, and market mechanisms. Many emerging technologies require ongoing exploration. In recent years, the emergence of new players and business models—such as distributed renewable energy, advanced energy storage, electric‑vehicle charging facilities, microgrids, and virtual power plants—has necessitated adjustments to the distribution network’s structural form, enabling it to more effectively leverage these entities’ inherent control capabilities. At the same time, continuous innovation in operating paradigms is required to create conditions for the participation of a wide array of new stakeholders, ensuring that their individual value‑creation goals are met while supporting the grid’s safety and economic operation.
Keywords:
Power grid,Energy,Electricity
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