Distribution networks seen as key to ensuring increased energy demand

China should continuously develop urban and rural power distribution networks to ensure a more reliable and efficient energy supply, at a time when renewable sources are becoming more prevalent in the nation's energy mix, said a member of the 14th National Committee of the Chinese People's Political Consultative Conference, the country's top political advisory body.

While rural power grids play a crucial role in improving production and living conditions in villages, they also face challenges due to their vast geographical distribution, lengthy power supply lines, dispersed loads and the substantial investments required for construction and maintenance, said Meng Zhenping, who is also chairman of China Southern Power Grid (CSG), during the two sessions earlier this month.

A modern rural power grid network is necessary as more renewable energy projects, especially solar, go online, he said.

The power grid is a crucial component of the energy sector, and serves as a network that connects power generation sources to consumers. A large proportion of the electricity consumed in the country is traded across provincial boundaries.

Meng called for strengthened planning, coordination and management of the rural grid network, emphasizing the importance of expediting the upgrade of rural power grid infrastructure.

He also called for a digital power grid — a power network that incorporates digital communication technologies and analytics to improve grid efficiency and reliability — to optimize energy flow, balance supply and demand, reduce energy loss and enhance grid resilience against disturbances or disruptions.

Due to continuous economic development, both businesses as well as households require more power supply. Grid network upgrades make it possible to ensure uninterrupted power supply to users, he said.

The fluctuation of renewable energy sources will cause issues such as voltage instability during power transmission, which will pose additional obstacles to maintaining grid stability, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

Grid operators and power generation asset owners have been taking a range of actions to reduce grid load and prevent PV curtailment, Lin said.

Distribution power lines are fundamental power facilities that directly serve users, with a complex network structure and wide coverage, he said.

Some grid operators have been upgrading the distribution network in villages and counties to prevent problems such as long power outages and ensure service quality, he added.

"Further efforts are needed to accelerate the upgrading of rural power grid infrastructure and enhance the digitization of rural power grids. Power grid enterprises can play a major role in building digital power grids, further extending the supply chain, while strengthening weak links along the chain and promoting the high-level development of infrastructure in the energy industry," said Meng from CSG.

Increased policy support and financial backing in areas such as taxation, finance, and electricity pricing can also help boost investment capacity for the transformation of urban and rural distribution networks to better support their sustainable development, he said.

CSG is in charge of power management in many regions of South China, such as the Guangxi Zhuang autonomous region, and the Guangdong-Hong Kong-Macao Greater Bay Area, where residents from rural regions account for around 10 percent of the total population, said the company.

The company has been accelerating the construction of digital power grids in recent years to lead the development of green energy in these areas. It has invested more than 470 billion yuan ($65.3 billion) since the 13th Five-Year Plan (2016-20) period in grid network construction, it said.

China's development of digital power grids has been on a fast track in recent years, with total investment in national grid construction projects in 2022 reaching 500.6 billion yuan, up 1.8 percent year-on-year, according to the China Electric Power Planning and Engineering Institute.

The power grid is a crucial platform for optimizing and allocating energy and electrical resources, said Sun Jiami, director of the National Energy Administration's grid department.

The development of grid technology helps meet growing demand for electricity and address global energy transitions, said Sun.