New Power System Salon: Innovative mechanisms promote normalized operation of demand-side resources
In order to further explore power demand-side management under new power systems, the "New Power Systems Salon" sponsored by the China Energy Research Association, organized by the Energy Policy Research Office of the China Energy Research Association, and co-organized by the Natural Resources Defense Council (NRDC) was recently held in Beijing. With the theme of "Innovating market mechanisms to promote user-side resources to participate in system regulation", this salon invited many experts such as the Institute of Enterprise Strategy of State Grid Energy Research Institute Co., Ltd., the National Energy Development Strategy Research Institute of North China Electric Power University, and the Natural Resources Conservation Association. Experts attended the meeting. The meeting was chaired by Lin Weibin, director of the Energy Policy Research Office of the China Energy Research Association.
Distributed photovoltaic power generation is growing rapidly and power demand-side reform is urgently needed
With the advancement of the construction of new power systems, the relevant mechanisms and systems for the power demand side to participate in power grid interactions have become the focus of discussions in the industry. Li Chao, spokesperson of the National Development and Reform Commission, proposed at a press conference in June: "Improve the level of demand-side management. Adhere to energy conservation and power saving assistance, priority in demand response, and orderly guaranteed power use, and better protect people's livelihood and key electricity needs through refined power demand-side management."
"In recent years, with the reform of on-grid tariffs for coal-fired power generation and the cancellation of industrial and commercial catalog tariffs, user-side business entities have entered the market on a large scale, providing soil for the development of new entities. The development speed of new entities has exceeded expectations, and new business formats and models have continued to emerge." Zhang Gao, a researcher at the Institute of Enterprise Strategy of State Grid Energy Research Institute Co., Ltd., said that according to the "Basic Rules for the Spot Electricity Market (Trial)", new entities mainly include virtual power plants, load aggregators, distributed power generation, energy storage, etc.
Zhang Gao introduced that in recent years, the installed capacity of distributed power supply has grown rapidly, distributed photovoltaics have dominated, and distributed gas and distributed wind power are also developing rapidly. As of December 2023, my country's cumulative installed capacity of distributed photovoltaic power generation is 254 million kilowatts, a year-on-year increase of 61%. Shandong, Hebei, Henan, Zhejiang, Jiangsu and other eastern and central regions are encouraged by resource endowments and policies, and the growth rate of distributed photovoltaic installed capacity exceeds the national average.
Regarding the phenomenon of distributed new energy entering the market, which is of great concern to the outside world, Zhang Gao believes that in the future, distributed power supplies can participate in market transactions as price recipients (participating in the market without quoting), or participate in electricity wholesale through virtual power plant aggregation and other methods. market.
Zhang Gao suggested that new energy storage can start with the price taker method (to participate in the market without quoting), and participate in the market by "quoting quantity" after conditions are met. In principle, the allocation and construction of energy storage should be bundled with the new energy invested and constructed to form a consortium operation, and accept unified dispatch from the power dispatch agency when necessary. New optimization aggregation entities such as virtual power plants and load aggregators participate in various transactions such as the electricity energy market and auxiliary service market in a unified agent form based on their own power balance or flexible adjustment capabilities.
The normalized operation of resources on the power demand side requires improving the policy environment
"At this stage, my country's power system is undergoing reshaping, from a model originally centered on coal-fired units and fossil energy to clean and electrified. This change shows more distinctive characteristics on the demand side." Liu Mingming, deputy director of the Clean Power Project of the Natural Resources Defense Association, emphasized.
Liu Mingming believes that my country's power demand-side development has gone through three stages: in stage 1.0, traditional power resources are facing a severe situation of short supply. In 2000, the state issued the "Measures for the Management of Electricity Conservation", which clearly included demand-side management as the content of power planning. This stage is guided by administrative orders, and energy conservation and energy efficiency improvement work are carried out at the same time. Around 2010, demand-side resource development entered stage 2.0. With the improvement of power supply capacity, the problem of peak and valley power load differences gradually became prominent. At this stage, focus is placed on guiding users to participate in shifting peaks and filling valleys through peak-valley electricity prices. At the same time, with the increasing number of volatile power sources, the demand for flexible valley filling is growing simultaneously, making demand response mechanisms play an important role in maintaining power grid balance. With the proposal of the dual carbon goal, my country's demand-side resource development has gradually entered stage 3.0, and the demand for abundance of the power system has increased. It is necessary to explore multiple models to play the normalized role of demand-side resources.
Liu Mingming said that in order to achieve normal operation of power demand-side resources, it faces three challenges: small and scattered potential of individual resources, insufficient incentives and high investment. The two major paths of digital intelligence and aggregated marketization can achieve the normalized development of demand-side resources.
Liu Mingming believes that the normalized operation of demand-side resources must have predictable, sustainable and considerable income channels, and innovative mechanisms should be used to promote the normalized operation of demand-side resources. With the help of digital intelligence technology, demand-side resources can achieve large-scale development and are qualified to participate in multiple types of markets. In terms of innovation mechanisms and models, it is possible to aggregate industrial and commercial users/distributed resources in need to participate in power wholesale market transactions, trade green electricity, and promote new energy consumption; aggregate multiple types of resources and focus on participating in the auxiliary service market to provide new power systems. Need for flexibility services, and play a role in meeting system adequacy in the capacity market, while tapping the potential of demand-side resources in the green certificate market and carbon market.
Liu Mingming emphasized that the normal operation of demand-side resources requires a sound policy environment, including providing institutional guarantees for the dominant position of demand-side resources, stipulating the market roles and rights and responsibilities of aggregators, and allowing aggregators to participate in the wholesale power market, auxiliary service market and Capacity market; Create market opportunities for demand-side resources to realize value, provide sound trading rules and strengthen market supervision to ensure the homogeneity and equal rights of all participating resources; Determine a framework system for providing services for demand-side resources, standardize scheduling, communication, measurement, evaluation and other contents, and ensure that user-side equipment has the ability to respond quickly and obtain instant feedback information.
