IEEE Power & Energy Magazine - November/December 2015 - 49

and opportunities for China to achieve a better renewable
energy development.
First, China is currently in the stage of industrialization
and urbanization. The electric demand is expected to double
in the next 15 years. With such a large growth space, renewable energy and conventional facilities can be better coordinated by optimizing their location and the energy mix. One
example is to strengthen coordinated planning for hydro,
wind, solar, and coal resources based in western and northern China. The bundled transmission of generation resources
can help reduce transmission costs. By considering new technologies such as electric vehicles, storage, and demand-side
management, the construction of the distribution power grid
can be promoted, which can then facilitate the integration of
distributed generation such as PVs.
Second, China is now in the process of kicking off a
new round of electricity market reform. According to the
"Opinions Regarding the Deepening of the Power Sector's
Reform," issued by State Council in March 2015, the key
points and road map for this new round of electric power system reform are "three deregulations, one independent, and
three strengthening." The three deregulations are the deregulation of electricity prices in all the competitive segments of
power systems excluding transmission and distribution, the
deregulation of electricity retail services and opening for
private capital, and the deregulation of generation schedules
except ones related to public welfare and power regulation.
The one independent refers to promoting the independence
of power trading organization. The three strengthening refer
to the strengthening of government supervision, the strengthening of coordinated planning of the power sector, and the
strengthening of secure and efficient system operation for a
more reliable power supply. Approved by the central government at the beginning of 2015, Shenzhen was chosen as the
first pilot for the reform of transmission and distribution pricing. West Inner Mongolia was approved as the second one
in June 2015. Anhui, Hubei, Ningxia, and Yunnan are listed
as the pilots for the provincial transmission and distribution
pricing. Reform schemes for other key areas such as deregulation of electricity retail services and the independence of
the power exchange agency are under study and drafting.
They are expected to be issued by the authority before the
end of 2015. One of the basic principles of the new electricity reform is to promote the increase of renewable generation
and distributed energy systems in electricity supply. Therefore, facilitating the integration of renewable generation will
be an important part included in the general framework and
related pilot projects of this round of reform. By summarizing the past lessons learned at home and abroad in renewable energy development and experience gained in sharing
benefits among stakeholders, we can expect a better top-level
design and work out a better way to solve the integration
issues of renewable energy. Furthermore, by exploring markets for ancillary services, flexibility, and capacity, a much
more comprehensive and coordinated market mechanism
november/december 2015

that better accommodates high penetration of renewable
energy can be formed.
China's exploration of power-base development and the
configuration optimization of wind and solar power generation has enriched the world experience on VG integration. At
the same time, China is also keen to borrow experiences from
other countries such as the United States, Germany, and Denmark and to devote a greater effort in the promoting development of distributed generation. As the old saying goes, "If all
you ever do is all you ever done, then all you ever get is all
you ever got." We believe that with the continuing effort of
innovation on both technology and market building, the Chinese dream of a much greener and more sustainable power
system will come true in a future not far away.

For Further Reading
Renewable Energy Law (amended), P.R. China, 2009.
L. Jiang, Y. Chi, H. Qin, Z. Pei, Q. Li, M. Liu, J. Bai,
W. Wang, S. Feng, W. Kong, and Q. Wang, "Wind energy in
China," IEEE Power Energy Mag., vol. 9, pp. 36-46, Nov./
Dec. 2011.
National Energy Administration of P.R China, "Working
scheme of the energy industry on strengthening air pollution
prevention," notice no. [2014] 506, Mar. 2014.
X. Chen, C. Kang, M. O'Malley, Q. Xia, J. Bai, C. Liu, R.
Sun, W. Wang,; H Li, "Increasing the flexibility of combined
heat and power for wind power integration in China: Modeling and implications," IEEE Trans. Power Syst., vol. 30, no.
4, pp. 1848-1857, July 1, 2015.
G. Xie and F. Hao, "Analysis on the situations and reasons of wind power operation and consumption in Northeast
China," Electric Power (in Chinese), vol. 47, no. 10, pp.
152-155, 2014.
Chinese Renewable Energy Industries Association
(2014). 2014 China Wind Power Review and Outlook (in
Chinese). [Online] Available: http://www.creia.net/publish/
report/198.html

Biographies
Liping Jiang is with the State Grid Energy Research Institute, China.
Caixia Wang is with the State Grid Energy Research Institute, China.
Yuehui Huang is with the China Electric Power Research Institute, China.
Zheyi Pei is with the National Electric Power Dispatching and Control Center, China.
Songxu Xin is with the State Grid Energy Research Institute, China.
Weisheng Wang is with the China Electric Power Research Institute, China.
Shuo Ma is with the China Electric Power Research Institute, China.
Tom Brown is with Energynautics GmbH, Germany.
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