Developing Demand Side Management in the Power Sector Reform

2016-05

Demand side management is regarded in the No.9 Document as a valuable grid resource. As electricity demand growth is decreasing, systematic conditions are becoming ripe in China for demand-side energy resources to meet electric loads, instead of relying completely on generation and grid asset build-out. Various enabling technologies to realize demand side management are also assessed, such as electric vehicles, commercial and industrial building demand response, and so on. Participants pointed out that as the market for demand response is still nascent in China, clear regulatory guidelines for the technical specifications of demand-side resource products are currently lacking. It is also uncertain as to what entities are allowed to purchase demand response. Furthermore, the participants concurred that supplying demand side resources via market mechanisms such that the providers would be adequately compensated for, will be critical to the wider adoption of demand-side manage in China.

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