Distributed renewable energy is a key strategy for replacing and reducing emissions from loose coal. However, its development has been hindered by challenges such as limited market adoption and an underdeveloped management system. With the booming photovoltaic industry and growing demand for decentralized energy, the potential for distributed energy is vast. The increasing need for localized power generation is driving innovation and investment in this sector.
The concept of "selling electricity across the wall" is becoming more realistic. In February 2018, China launched its first batch of pilot projects for market-oriented trading of distributed power generation. This initiative, announced by the National Development and Reform Commission and the National Energy Administration, outlines key aspects such as project capacity, transaction models, and cost structures. By moving away from the traditional "benchmark price + subsidy" model, market-based trading is expected to lower transaction costs and increase revenue for distributed projects, thereby accelerating their development.
"Distributed energy offers high efficiency, low environmental impact, strong economic returns, and reliable supply," said Zhu Mingru, director of the New Energy and Renewable Energy Department at the National Energy Administration. He emphasized that this form of energy will play a crucial role in the future of power systems, improving grid integration of renewables and promoting more efficient energy use.
According to the "China's Distributed Energy Outlook," favorable policy and market conditions are set to further boost the growth of distributed energy. With government support and technological advancements, the sector is well-positioned for rapid expansion.
Despite its promise, distributed energy still faces obstacles. Limited marketization, outdated public services, and unclear regulatory frameworks have slowed progress, particularly in sectors like natural gas. Clean energy often lacks price competitiveness compared to coal, making it difficult for distributed projects to achieve sustainable revenue. Moreover, the roles of grid operators and project developers remain ambiguous, which hinders widespread adoption.
To address these issues, China has been increasing support for distributed energy during the "13th Five-Year Plan." Policies encouraging decentralized wind and natural gas power have been introduced, aiming to improve efficiency and promote sustainable growth. Officials are also exploring new trading mechanisms and business models to enhance the viability of distributed generation.
Looking ahead, the "13th Five-Year Plan for Energy Development" sets ambitious targets: over 110 million kW of natural gas power and more than 60 million kW of distributed photovoltaics by 2020. These goals highlight the significant room for growth in the sector.
Local governments are increasingly recognizing the value of distributed energy. Provinces like Hebei, Henan, and Shandong have promoted projects using distributed natural gas for heating, while others have introduced on-grid pricing and subsidies to encourage adoption. This growing local interest is helping to drive the sector forward.
As the service sector becomes a larger share of China’s economy, the demand for decentralized energy is rising. Modern distributed systems offer a cleaner alternative to coal-based centralized systems, reducing pollution and emissions. However, challenges such as grid stability and infrastructure limitations remain.
Technological advances, including digital sensors, big data, and electric vehicles, are also supporting the growth of distributed energy. These innovations enable better energy management, personalized services, and improved efficiency through smart grids and microgrids.
Experts like Simon Muller from the International Energy Agency believe that distributed energy could revolutionize business models, enabling peer-to-peer energy trading and decentralized systems. As the sector continues to evolve, it holds great promise for a more sustainable and efficient energy future.
Hydraulic Power Unit (HPU) is a critical component in many industrial and engineering systems that convert mechanical energy into hydraulic energy. There are several types of HPUs, each designed to meet specific requirements and applications. Here's an overview of some common classification.
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