Energy security is an essential component of economic growth. As China continues to establish itself as one of the world’s fastest developing nations, it has been a challenge to meet the country’s energy needs through their pre-existing mix of coal, hydro and renewables.
Source: China Energy Portal
China’s 13th Five-Year plan (2016) directed the country’s efforts toward renewables: targeting the installation of an additional 2,000 GW of capacity and increasing the country’s share of non-fossil fuel energy by 15%. China also aimed to reduce emissions per unit of GDP by 40 to 45% by 2020 compared to 2005 levels. However, these targets have been actively hindered by the country’s current system, which results in high emissions from coal power plants, transmission and distribution losses, peak demand issues, weather-related issues and aging grid infrastructure.
To address these challenges, China has announced new energy policies, such as the Energy Supply & Consumption Revolution Strategy and Energy Internet plan. But in order to reduce emissions, increase renewables and implement distributed generation, a market-centric tool will be necessary to act as a bridge between governmental policy and industry users as they work toward holistic implementation.
GBCI has developed a policy brief that details how the PEER Rating System (Performance Excellence in Electricity Renewal) can act as this market tool to help assess power system performance, improve infrastructure resilience and enact policy components. In tandem with the ongoing governmental efforts to achieve these energy targets, PEER can aid in China’s ambitious modernization of the country’s grid.
This policy brief was authored by Mili Majumdar, Ishaq Sulthan & Sanjay Kumar