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Unlocking Demand-Side Flexibility in China

Unlocking Demand-Side Flexibility in China

Full Title: Unlocking Demand-Side Flexibility in China: Current Status and Potential of Demand Response in the Industrial Sector
Author(s): Yujing Liu, Ziyi Liu, and Jun Xie
Publisher(s): Rocky Mountain Institute
Publication Date: December 10, 2023
Full Text: Download Resource
Description (excerpt):

A zero-carbon power system will face uncertainties from both the supply and demand sides. This will require more system flexibility resources to meet the power balance and to realize a larger scale of renewable energy integration. This is especially true in China where the compound annual growth rate of electricity consumption between 2015 and 2022 reached 6.1 percent. The growth rate of the peak load was even higher at 7.1 percent, showing greater volatility on the load side.

With economic development and electrification of other sectors, China’s electricity demand will continue to grow, and the value of demand-side flexibility (DSF) will become increasingly significant. In recent years, the power supply and demand balance in China has been tight, and strengthening load management and developing DSF resources have become urgent tasks in building the New Power System.

This report dives deep into the technical issues of developing industrial DSF. Combining domestic and international practice and progress, it identifies the main sources and potentials of industrial DSF; explores the technical, economic, and managerial challenges; and specifies the important role that industrial DSF plays in building the New Power System.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

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