2Q 2018

Preparing for New DER-Driven Opportunities in the Chinese C&I Energy Market

The Chinese energy market has experienced significant changes since 2015. These changes are driving the creation of new wholesale energy and retail choice markets at the commercial and industrial (C&I) customer level in China. Simultaneously, the Chinese government is looking for ways to continue deploying renewables more efficiently.

The country has struggled with renewables curtailment and the lack of interconnections almost since the inception of the industry. On October 31, 2017, the National Energy Administration (NEA) and the National Development and Reform Commission (NDRC) announced an initiative for market-oriented distributed power generation that represents a new part of the power sector reform in China. This initiative has the potential to transform the Chinese energy industry starting from the edge of the grid.

This Navigant Research report explores the changes in the Chinese C&I electricity market and the opportunities they create for distributed energy resources (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.

Pages 9
Tables | Charts | Figures 1

  • Why is China’s distributed energy resources (DER) sector gaining momentum?
  • What challenges do current DER providers in China face?
  • How can DER solutions offered in other markets help create solutions for these challenges?
  • What strategies can DER stakeholders use to succeed in the early stages of the Chinese DER opportunity?

  • Distributed renewables providers
  • Virtual power plant (VPP) providers
  • Distribution network operators
  • Grid operators
  • Utilities and energy suppliers
  • Equipment manufacturers and inverter companies
  • Electricity system operators
  • Investor community

Spark

Context

Recommendations

Reforms in China Will Transform the Electricity Market

Chinese Government Distributed Generation Reforms Will Drive the Adoption of DER

New Chinese DER Business Models Will Continue to Emerge

Finding Success in Developing Market-Specific Solutions

OEMs Should Accelerate the Development of Market-Specific Solutions

Project Developers Need to Educate Other Stakeholders

Project Developers Need to Strengthen Their Customer Acquisition Teams

Lawyers and Financiers Need to Think Outside of the Box

C&I Customers Should Start Evaluating Options

Tables

  • Document No. 9 of March 2015 and Stated Reform Process

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