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Analysis of Future Development Strategies for Increasing Concern for Distributed Energy


Under the reform of electricity market, as an efficient functional system of energy comprehensive utilization, distributed energy has attracted more and more attention. After more than 20 years of development, distributed energy has achieved phased results, and its integration with the large grid is considered to be one of the main directions of future power market development, and the future development can be expected.

The development of distributed energy in China has gone through three stages, namely, the primary stage, the substantive implementation stage and the turning point stage. Although the overall development is relatively slow, there is still considerable progress. Next, after participating in the power market competition, it will further play the role of distributed energy, including improving energy utilization, reducing environmental pollution, and improving the security of power supply system.

In the 1990s, the concept of distributed energy was introduced into China and preliminary exploration began. However, the primary stage is still in the form of "cogeneration of heat and power" and "cogeneration of cold and hot shops", rather than the term "distributed energy".

Until the beginning of the 21st century, some large-scale distributed energy projects have been put into use, and distributed energy has entered the substantive implementation stage. At this stage, not only large-scale projects have been successfully piloted, but also related concepts have been deeply rooted in the hearts of the people. However, there are grid-connected problems and the development is relatively slow.

After 2011, discussions on distributed energy have heated up rapidly, and targeted support policies have fallen in succession, accelerating the development process of distributed energy, which is considered as a turning point. Despite the rapid development, there is no unified standard and norm. Distributed energy has not yet been able to form economies of scale, and its beneficial effects on the electricity market and the economy and society are difficult to reflect.

After the above three stages of development, distributed energy has reached a critical node, industry obstacles are gradually removed, and it is expected to enter a mature stage. At that time, distributed energy may usher in explosive growth.

In order to promote distributed energy to enter the mature stage as soon as possible, more measures should be taken to improve industry policies and standardize market order. Specifically, the development of distributed energy can be promoted from three aspects.

First, we should unify norms and implement them in a distributed way. Distributed energy has not been able to drive into the fast lane, which is related to the lack of graduality and continuity of policies. Therefore, it is necessary to unify norms and distribute them in order to avoid chaos caused by a swarm of bees.

Second, improve the electricity price subsidy mechanism. For distributed energy at this stage, it is very important to further clarify the criteria, methods, procedures and deadlines of subsidies. Only by improving the electricity price subsidy mechanism can distributed energy develop well.

Thirdly, we should rationally choose the mode of development. Distributed energy is currently operated independently, not connected to the grid, connected to the grid, and all the power generation is connected to the grid. In the future, the development mode should be rationally selected according to different regions.

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