A Holistic View of New Power Systems

1. New power systems shall be built on the basis of innovating and upgrading existing power systems.

The development of power systems has provided strong guarantees for the socioeconomic development in China, and supported the country’s growth into the second largest economy in the world. The electricity consumption of the whole society has grown rapidly in China, reaching 8.6 trillion kWh in 2022, which is equivalent to the combined electricity consumption of the US, the EU and Japan. China has gradually developed power systems that have the largest capacity of transmission and the highest voltage level of transmission in the world with multi-region AC/DC hybrid power grids, and China has established a complete system of the power industry accordingly. To build new power systems, China needs to take into account the basic national conditions and follow the rules of development. Instead of starting from scratch, China shall innovate and upgrade its existing power systems.

2. It is urgent to build new power systems to achieve carbon peak and carbon neutrality.

To achieve carbon peak and carbon neutrality, it is urgent to adhere to the concept of system and speed up the development of new power systems. From the aspect of power supply, the needs for large-scale development of new energy have raised the bar for system regulation capability. At present, new energy has yet to become a reliable alternative, and most of the new energy sources are unable to provide moment of inertia for the power system. From the aspect of the power grid, to facilitate the development and power transmission of large-scale new energy bases, stronger efforts need to be made in the transmission technologies. There is an urgent need to upgrade technologies of dispatching and operation of power systems with high-proportion new energy installations and power electronics-based equipment. In addition, measures shall be taken to improve the distribution network by enhancing the reliability of power supply, flexibility of transaction and diversity of the forms of power supply. From the aspect of users, the peak load features have become increasingly evident, and the capacity of flexibly adjusting the power load has yet to be fully explored. Hence, it is necessary to proactively develop new business formats and models including the integration of power source, grid, load, and storage.

3. New energy storage is a critical part of building new power systems.

To facilitate the high-quality development of electric power in the new era, China needs to take into account the key factors of safety, cleanliness and efficiency, so as to achieve harmony, unity, and overall coordination. The new energy storage can play a vital role in supporting power supply, improving system regulation capability, and ensuring the safety of power grid operation, and it has multiple scenarios of application with diversified forms and time slots. Through the large-scale application of energy storage, China’s power system has experienced a transition from the conventional approach of power source changing in accordance with load into the integration and interaction of power source, grid, load and storage, so as to achieve the overall coordination of thee three development goals of safety, cleanliness and efficiency. By taking into account the requirements of power systems, China needs to promote the reasonable application of energy storage in multiple scenarios from the aspects of power source, grid and load, and facilitate the coordinated application of energy storage at multiple time slots.

4. Innovation is a crucial driving force for the development of new power systems.

Innovations in terms of both the technology and the institutional mechanism are the “dual driving forces” for the development of new power systems. It is necessary to achieve further breakthroughs in major technologies to support the building of new power systems, including the transmission technologies that support large-scale power supply based solely on new energy and the transmission technologies that adapt to high-altitude areas. China shall fully leverage its institutional mechanism to provide strong guarantees and address the bottlenecks in the conventional policy mechanism. It is necessary to promote the integration of effective market and promising government, and enhance the overall coordination and management of the entire link and varying elements of power systems. In addition, it is advocated to promote the in-depth integration of production, education and research, engage all relevant stakeholders, and jointly contribute to the development of new power systems.

Key Tasks of the Development of New Power Systems

As specified in Chapter Four “Framework and Key Tasks” of the Blue Book on the Development of New Electric Power Systems (hereinafter referred to as the Blue Book), China intends to build a new framework for the power system based on “anchoring a fundamental objective, centering around a primary goal, strengthening the development of four systems, and enhancing the support for innovation from three aspects”. In the Blue Book, the seven key tasks proposed are problem-oriented, echoing the six challenges specified in Chapter One “Status-quo and Challenges of the Development”.

1. Enhancing the development of four systems

The “four systems” refer to the support system for power supply, the system for developing and utilizing new energy, the system for large-scale energy storage application, and the intelligent operation system for the grid.

To enhance the development of the support system for power supply, China needs to focus on building a diversified and integrated guarantee system for source, grid, load and energy storage adaptable to large-scale new energy development. Furthermore, it is necessary to adhere to the bottom-line thinking, and ensure the security of power supply. As specified in the Blue Book, to achieve the carbon peak and carbon neutrality, it is necessary to step up efforts in developing non-fossil energy sources of power generation and establishing a diversified, green and low-carbon structure of power supply. Judging from the growth of rigid demands of China’s electricity consumption and the needs to improve the reliable substitution capacity of new energy sources, it is necessary to stabilize the fundamental supply and promote the flexible and low-carbon development of coal-fired power, and build new types of coal-fired power. To speed up the improvement of the safe and reliable substitution capacity of new energy sources, it is advocated to proactively build a “new energy plus” model, and ensure that the output features of power stations are close to conventional power sources through innovative design of intelligent control mode of energy storage and new energy coordination. In addition, efforts shall be made to coordinate different modes of power supply to achieve long-distance transmission and local balance, and promote the development of a fundamental pattern of “large power supply and large power grid” compatible with and complementary to distributed power generation from new power systems.
To strengthen the building of an efficient system of developing and utilizing new energy, China needs to focus on setting up a new pattern of diversified development and utilization of new energy. In addition, it is necessary to improve the capability of power system regulation and support in a holistic manner, and facilitate the large-scale and high-quality development of new energy. As specified in the Blue Book, to achieve the target proportion of non-fossil energy accommodation, it is necessary to step up efforts in developing new energy in the deserts including Gobi deserts, hydropower in major river basins, and offshore wind power in a large-scale and intensive manner based on new energy bases. China’s new energy bases are far away from the centers of power load. Accordingly, China is facing great challenges in terms of massively transferring new energy in a safe and reliable manner. Hence, it is urgent to promote the upgrading and flexible development of the backbone power grid, so as to support the efficient development and utilization of high-proportion new energy installations. Moreover, it is advocated to promote the local development and utilization of distributed new energy, facilitate the cross-border integration and development of new energy in varying fields, and form the new industrial chain and value chain. To meet the demands for accommodation and utilization of distributed new energy, it is necessary to proactively build and promote distributed smart grids and enhance the controllable and adjustable capabilities of distributed new energy. To meet the demands for large-scale new energy accommodation, it is advocated to fully tap into the accommodation potential of the power source, grid, load and storage, and facilitate the substitution of clean energy in varying fields on the user side, so as to promote the accommodation and utilization of new energy.

To enhance the system for large-scale energy storage application, China needs to focus on fully leveraging the key role of new energy storage in building new power systems. As specified in the Blue Book, given that the construction period of pumped storage power stations is long, it is necessary to promote the reasonable deployment and development of these power stations based on factors such as the demands of power system, conditions of resources in the stations, and optimal allocation of inter-provincial and intra-regional resources. While determining the layout of developing new energy storage, China needs to fully take into account the needs for building power systems and the cost-effectiveness of technologies. It is advocated to proactively expand the scenarios of application, and properly set up the large-scale layout of the power source, grid and load. In addition, China shall fully tap into the advantages of energy storage, including electricity storage, heat storage, gas storage, cold storage and hydrogen storage, and promote the integrated and optimal operation of varying sorts of energy storage in the power system.

To strengthen the intelligent operation system for the grid, China needs to mainly rely on technologies including “cloud computing, big data, Internet of Things (IoT), mobile Internet, artificial intelligence (AI), blockchain and edge computing”, and build a new system of intelligent operation adaptable to the development of new energy. As specified in the Blue Book, to support the coordinated control of power source, grid, load and storage, it is necessary to build a new system of dispatching and operation adaptable to the development of new energy. To improve the capability of the power grid of optimizing the allocation of resources, the carrying capacity of diversified loads and the ability of ensuring safe power supply, it is necessary to promote the intelligent upgrading of the power grid. Moreover, it is advocated to establish a new digital infrastructure to facilitate the digital transition of core businesses including the production and operation of power systems. Efforts shall be made to build a platform of digital economy for energy and power, and promote the in-depth integration of digital flow as well as energy and power flow.

2. Strengthening the support for innovation from three aspects

The “innovation from three aspects” refers to the innovation of standards and specifications adaptable to new power systems, the innovation of core technologies and the application of major equipment, and the innovation of relevant supporting policies and institutional mechanisms.

To strengthen the innovation of standards and specifications adaptable to new power systems, China needs to improve the overall planning of the top-level design of standards and specifications related to new power systems, and develop a multi-tier, coordinated and unified system of standards. As specified in the Blue Book, to coordinate and promote the standardization of new power systems, it is necessary to improve the relevant standards of varying links of the power source, grid, load and storage, and clarify the relations between the standards of different fields and levels. To effectively ensure the safe and stable operation of power systems as well as the reliable supply of electricity, it is advocated to strengthen the research on standards related to the safety of power supply, and formulate and enhance the standards for the safe and stable operation and control of power systems. To further promote the development of a unified national electricity market, the optimal allocation of power resources, and the exploration of flexible regulation capability of the power system, it is necessary to facilitate the introduction of relevant standards for the electricity market and the development of the power market mechanism. To give full play to the leading role of the power industry, it is advocated to plan in advance the standards of new technologies and new business formats, so as to facilitate the development of smart power systems.

To enhance the innovation of core technologies and the application of major equipment, China needs to tap into the potential of technological development from the aspects of power source, grid, load and storage, and promote major technological breakthroughs to support the development of new power systems. As specified in the Blue Book, China needs to promote the research and development of key technologies as well as innovation of equipment and device in areas including but not limited to: technology and equipment related to the clean, safe and efficient power generation; technology and equipment related to advanced, flexible and efficient power transmission and distribution; technology and equipment related to large-scale and highly safe energy storage; and technology related to the safe and stable operation of power system. Efforts shall be made to improve the safety, reliability, cost-effectiveness and flexibility of the power system.

To strengthen the innovation of relevant supporting policies and institutional mechanisms, China needs to fully leverage its institutional mechanisms to provide guarantee for addressing the bottlenecks of conventional policy mechanisms, enhancing the overall coordination and management of the entire link and varying elements of power systems, and promoting the integration of the effective market and the promising government. As specified in the Blue Book, first, it is necessary to establish a market system adaptable to new power systems, and strengthen the connection among the green certificate market, the carbon market and the electricity market. It is advocated to fully tap into the vital guiding role of pricing policy, and improve the investment, financing, fiscal and taxation policy system for the development of new power systems. Furthermore, efforts shall be made to build an independent and innovative system of technological research and development, promote the development of “inter-disciplinary integration” of new power systems with other fields, and establish a green and low-carbon power industry system with competitiveness and vitality. Last but not least, it is necessary to enhance the advanced and efficient governance system of the power industry, and strengthen the overall coordination of varying links including power planning, construction, operation, transaction and pricing.