Key Focus Areas for Enhancing Power System Regulation Capacity Finalized

31 Jul.,2025

On January 6, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) jointly issued a notice on the Implementation Plan for the Special Action to Optimize Power System Regulation Capacity (2025–2027) (hereafter referred to as the Implementation Plan).

 

ORIGINAL BY NLS

 

On January 6, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) jointly issued a notice on the Implementation Plan for the Special Action to Optimize Power System Regulation Capacity (2025–2027) (hereafter referred to as the Implementation Plan). The document outlines key objectives, including significantly improving the regulation capacity of the power system by 2027, refining market environments and business models for various regulatory resources, and enhancing resource dispatch mechanisms. These efforts aim to support the annual integration of over 200 GW of new renewable energy capacity during 2025–2027, ensuring a nationwide renewable energy utilization rate of no less than 90%.

 

As of the third quarter of 2024, China's flexible coal-fired power generation capacity exceeded 600 GW, with cross-provincial and cross-regional power allocation capabilities surpassing 300 GW. The cumulative installed capacity of pumped storage reached 55.91 GW, while newly operational energy storage systems amounted to 58.52 GW/128 GWh. However, a representative from the NEA noted that challenges remain in the development of regulatory resources. With annual new renewable energy installations surpassing 200 GW, the rapid growth trajectory is expected to continue through the 15th Five-Year Plan period, significantly increasing pressure on the system to absorb this capacity. Some provinces with accelerated renewable energy development are experiencing pronounced integration pressures. Additionally, the lack of coordinated optimization in regulation capacity development, underutilization of existing resources, and gaps in pricing and market mechanisms require urgent attention.


In response, the Implementation Plan identifies three primary tasks:
1.Developing comprehensive regulation capacity plans: Each region is required to create systematic and locally tailored plans to scientifically determine the scale and distribution of regulation capacity.
2.Improving regulatory resource dispatch mechanisms: Innovative and diversified dispatch methods are encouraged, particularly for new energy and advanced energy storage, to address the current reliance on limited dispatch approaches.
3.Refining market participation mechanisms for regulatory resources: Efforts will focus on optimizing pricing and market systems to enhance the efficiency and effectiveness of resource utilization.
The Implementation Plan emphasizes the importance of systematically coordinating regulation capacity construction, scientifically planning the scale and layout of resources, and adopting innovative approaches to fully utilize equipment capabilities. By enriching dispatch methods for renewable energy and new storage technologies, the plan seeks to ensure a balanced and sustainable energy transition across the country.