Integrating Distributed Energy Resources in China

Like no other country in the world, the People’s Republic of China (hereafter, “China”) is witnessing rapid growth in distributed energy resources (DERs), including rooftop solar photovoltaics, battery storage and electric vehicle (EV) chargers. As China advances towards its carbon peaking and neutrality goals, these resources offer a unique opportunity to support a more flexible, efficient and resilient power system, provided their integration is well-managed.

This report analyses recent trends in DER deployment across China and highlights the emerging challenges their growth poses for power system planning and operation, calling for renewed attention to distribution grids. It puts China’s development of DERs in international perspective by drawing on experiences from jurisdictions that are further along in their DER integration journey, such as Australia, Europe, Japan and the United States. Through cross-country comparison, the analysis identifies lessons and best practices that are relevant to China’s evolving power sector and regulatory landscape. It offers insights into the role of policy, regulation, market design, digital infrastructure and institutional frameworks in unlocking the full potential of DERs.

The report provides tailored policy guidance to support Chinese decision makers in designing effective strategies for DER integration through 2030 and beyond. At the same time, it can serve as a valuable reference for Chinese and international experts working to develop coherent, forward-looking approaches to DER integration.