Navigant Research Report Shows China is Open to Electricity Market Competition and Pushing for Distributed Energy Resources

To participate in Chinese energy market, OEMs and project developers should accelerate development of market-specific solutions and educate Chinese stakeholders on DER

A new report from Navigant Research examines the changes in the Chinese commercial and industrial (C&I) electricity market, and the opportunities they create for distributed energy resources (DER) stakeholders.

As markets for wholesale energy and retail grow in China, the Chinese government is finding new ways to deploy renewable energy with an emphasis on distributed power generation. From the start of the industry, China has struggled to integrate its increasing 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. Click to tweet: According to a new report by @NavigantRSRCH, 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.”

According to the report, the Chinese government is 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 recommends OEMs and project developers develop market-specific solutions, strengthen their customer acquisition teams, and educate Chinese stakeholders on DER.

This 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.

Contact: Stefanie Bradtner

+49.221.270.70.142

stefanie.bradtner@navigant.com

* The information contained in this press release concerning the report, Preparing for New DER-Driven Opportunities in the Chinese C&I Energy Market, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

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