New study finds China open to competition and increased DER participation


A new study conducted by Navigant Research shows that China is open to electricity market competition and is pushing for an increase in distributed energy resources.

Opportunities to expand distributed energy resources are a result of an initiative introduced in 2017 by the National Energy Administration and National Development and Reform Commission.

The initiative was designed to accelerate distributed energy generation, following China’s struggle to integrate its increasing renewable resources with central grid infrastructure.

The Chinese government continues to draft and implement legislation supporting distributed energy resources (DERs) integration and competition within the segment.

Growing competition has also led to the introduction of innovative business models within the industrial and commercial electricity market as the wholesale and retail energy markets grow.

Navigant recommends organisations wanting to take advantage of the Chinese DERs market develop market-specific solutions, strengthen their customer acquisition teams and educate Chinese stakeholders on DERs.

Roberto Rodriguez Labastida, senior research analyst with Navigant Research, said: “The focus on DER by China’s NDRC represents a new part of the power sector reform in China.

“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.”