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China Pushing for Distributed Energy Resources

As markets and wholesale energy and retail grow in China, the Chinese government is looking for ways to deploy renewable energy with a heavy emphasis on distributed power generation. This will create opportunities for distributed energy resources (DER) for stakeholders.

From the start of the industry, China has struggled to integrate renewables with central grid infrastructure. To resolve this issue, the National Energy Administration and National Development and Reform Commission (NDRC) announced a market-oriented distributed power generation initiative in fall of 2017. According to a report by Navigant Research, China is open to electricity market competition and pushing for DER.


“The focus on DER by China’s NDRC represents a new part of the power sector reform in China,” says Roberto Rodriguez Labastida, senior research analyst with Navigant Research. “This strategy has the potential to change the Chinese energy industry and eventually fulfill demands of the C&I and retail choice markets at the customer level.”


The Chinese government is also pushing legislation and incentives to encourage competition in the realm of distributed resources. In response to that opening of competition, innovative business models are emerging to take advantage of these new opportunities in the Chinese C&I marketplace. To participate and enhance competitiveness, Navigant recommended OEMs and project developers develop market-specific solutions, strengthen their customer acquisition teams, and educate Chinese stakeholders on DER.


To learn more, read the Navigant Research report, Preparing for New DER-Driven Opportunities in the Chinese C&I Energy Market, explores the changes in the Chinese C&I electricity market and the opportunities they create for DER stakeholders. The study addresses the challenges that are emerging as companies and project developers aim to capitalize on these DER opportunities. It also looks at DER strategies that have been successful in other markets that could be adapted to conditions in China and assist project developers in creating successful and innovative DER business models.

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