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July grid-connected distributed power supply project doubles development prospects
In recent months, following the release of new distributed power generation policies by the Ministry of Finance and the National Development and Reform Commission, China Southern Power Grid Co., Ltd. has issued "Guiding Opinions on Further Supporting the Development of New Energy Sources such as Photovoltaic Power." This document outlines measures related to grid connection, power purchase, electricity sales, and dispatch management, aiming to support the orderly and coordinated development of renewable energy. In addition, to better accommodate distributed power projects, State Grid has expanded its role beyond just technical consultation and project commissioning. It is now focusing on strengthening distribution network infrastructure to support large-scale integration of distributed power sources.
The efforts of both major grid companies have become key drivers in advancing distributed energy projects. As a result, the pace of grid-connected distributed projects has significantly accelerated, with many residential and commercial users now participating in the energy transition.
For instance, in August, several notable projects were successfully connected to the grid. One example was the photovoltaic system installed by Zhang Hairun, a resident of Zhengzhou, which became the first personal solar project integrated into the grid in the city. In Zhejiang, the 20 MW user-side photovoltaic project in Beilun District, Shanghai Baosteel, was officially commissioned after successful re-inspection. Additionally, Zhao Ruixing from Wuxiang County in Shanxi Province became the first resident to connect his 18 kW photovoltaic system to the grid, marking a milestone for the region.
According to reports from State Grid, since November 1, 2012, the number of distributed photovoltaic installation applications across the country has been increasing steadily, with multiple projects successfully going online. As of August 5, 2012, the State Grid had handled 12,803 consulting requests, 943 installation reports, totaling 1.81 million kilowatts, with 910,100 kilowatts coming from photovoltaics. Other sources like biomass, wind, and natural gas contributed 83,600 kilowatts. A total of 225 projects were fully operational, generating 271,100 kilowatts and producing 66,023,300 kWh of electricity.
Comparing this to data from the end of June 2012, the State Grid had accepted 604 distributed power generation projects with a total capacity of 1.2 million kilowatts, of which 585 were photovoltaic, totaling 1.15 million kilowatts. The remaining 19 projects involved other sources, contributing 48,300 kilowatts. By July alone, the number of grid-connected distributed projects doubled, showing a rapid growth trend.
To ensure reliable grid integration of distributed power, the State Grid is investing heavily in upgrading its distribution networks. With decentralized and small-scale power sources, grid capacity often lags behind project development, leading to curtailment issues. To address this, the government has emphasized the importance of smart distribution networks, fault detection systems, and automated isolation mechanisms. These improvements are essential for handling the growing number of distributed energy sources and reducing energy waste.
Recent policy updates also highlight the need for better coordination between grid planning and the expansion of distributed energy. Both State Grid and China Southern Power Grid are working to align their distribution plans with urbanization goals, electric vehicle growth, and long-term grid strategies.
As more households and businesses install solar panels, the grid companies are continuously refining their service processes. From application submission to grid connection and power trading, they are streamlining procedures to make it easier for customers to participate. At the same time, the government is enhancing supportive policies, including subsidies based on electricity output and improved regulatory frameworks.
With these combined efforts, the future of distributed energy in China looks promising, offering a cleaner, more sustainable path toward a smarter and more resilient power system.