China Power System Transformation
Assessing the benefit of optimised operations and advanced flexibility options
China Power System Transformation has a two-fold objective. First, it provides a summary
of the state of play of power system transformation (PST) in the People’s Republic
of China (“China”) as well as a comprehensive discussion of PST internationally. This
includes a comprehensive review of all possible sources of power system flexibility
(power plants, grid infrastructure, storage, and demand-side response) and a detailed
discussion of market, policy, and regulatory frameworks to effectively mobilise power
system flexibility. Second, it presents findings from a detailed power sector modelling
exercise for China in 2035, building on the 2018 World Energy Outlook New Policies
and Sustainable Development Scenarios. The modelling identifies the establishment
of spot markets and trade between provinces as two of the main elements to improve
system operation efficiency in China. In order to integrate very high shares of variable
renewables consistent with the WEO SDS, activating the demand side – especially electric
vehicles – and targeted use of electricity storage are found to be crucial for an
accelerated transformation of the Chinese power system.
Published on March 26, 2019