On July 11, State Grid Corporation of China held a press conference in Beijing to announce the "2024 Report on State Grid Corporation of China’s Services for High-Quality Development of New Energy," which provides an overview of new energy development within State Grid’s operating areas, summarizes the company’s achievements in supporting high-quality development of new energy, analyzes the current trends in new energy development, releases State Grid’s initiatives and calls to action for serving new energy development, and introduces relevant progress in deepening the construction of the electricity market.

2023 marks the inaugural year for fully implementing the spirit of the 20th National Congress of the Communist Party of China, and it is also a pivotal year for carrying forward the achievements of the 14th Five-Year Plan and laying the foundation for the next phase. As a super-large state-owned key backbone enterprise closely linked to national energy security and the lifeline of the national economy, State Grid Corporation has earnestly implemented the CPC Central Committee’s decisions and deployments on proactively and steadily advancing carbon peaking and carbon neutrality goals, as well as on planning and building a new energy system. It is accelerating the construction of a new power system, taking the lead in adopting comprehensive measures across the entire chain—from power generation and transmission to consumption and storage—and making every effort to support the high-quality development of new energy sources.

The report provides a detailed overview of the development of new energy sources within the State Grid’s operating area in 2023, systematically outlining the State Grid Corporation’s commitment to supporting the development of new energy. It comprehensively reviews the company’s key initiatives and innovative practices in five areas—power source grid connection, grid infrastructure construction, dispatch and operation, market trading, and technological innovation—while analyzing the current trends in new energy development. Additionally, the report releases the State Grid’s actions and initiatives aimed at further supporting the growth of new energy.

In 2023, the integration and consumption of new energy sources in the State Grid’s operating area mainly exhibited four key characteristics. ： The installed capacity has reached a new milestone. Throughout the year, the operating area added 226 million kilowatts of new wind and solar power capacity, an increase that represents approximately 80% of the U.S.'s cumulative installed capacity of new energy as of the end of 2023 and 1.5 times Germany's figure. Distributed power sources have become the main driver of growth. The cumulative installed capacity of new energy sources has reached 870 million kilowatts, accounting for 37.7% of the total power generation capacity—a year-on-year increase of 6.1 percentage points. Electricity generation and consumption continue to reach new highs. Throughout the year, new energy generation reached 1.2 trillion kilowatt-hours, accounting for 16.9% of total electricity generation, an increase of 2.0 percentage points over the previous year. Utilization remains at a relatively high level, The utilization rate of new energy sources reached 97.4%, remaining above 97% for four consecutive years.

In 2023, State Grid Corporation adopted comprehensive measures to support the high-quality development of new energy from five key areas.

Leverage the functions of the power grid platform and provide excellent grid connection services. Adhering to the principles of “overall network coordination and ensuring stable quantity and rate,” we are actively promoting the construction of large-scale new energy bases, accelerating the development of supporting grid infrastructure, and providing scientific support for the scaled-up development of distributed photovoltaic systems, thereby ensuring that new energy sources are connected to the grid “as soon as possible and whenever feasible.” We have also built the world’s largest cloud platform for new energy, offering online services for new energy power stations.

Accelerate grid construction and enhance the capacity for optimal resource allocation. We continue to strengthen the construction of new-energy grid connection and transmission projects, having cumulatively completed “19 AC and 16 DC” ultra-high-voltage transmission projects. We are promoting high-quality development of distribution networks to meet the grid connection and operational needs of various distributed energy sources. We are accelerating the development of flexible power resources; currently, there are 94.04 million kilowatts of pumped storage capacity in operation and under construction, supporting the flexibility upgrades of coal-fired power plants and the development of new energy storage technologies. We are also actively advancing demonstration projects for a new power system.

Lower Reservoir of the State Grid New Source Anhui Jixi Pumped Storage Power Station

Strengthen unified scheduling across the entire network and enhance the system’s capacity to absorb renewable energy. We will fully support the construction, commissioning, safe operation, and efficient utilization of new energy sources. We will meticulously optimize dispatching, strive to maximize every kilowatt-hour of electricity generated, continuously strengthen unified grid-wide dispatching, advance the development of spot and ancillary service markets, enhance our capacity to forecast new-energy power output under extreme weather conditions, fully leverage the role of new energy in ensuring and increasing power supply, bolster the proactive support capabilities of new energy, and provide solid guarantees for the high-proportion integration of new energy and the safe operation of the power grid.

Expand the scale of market transactions and tap into the full potential for accommodating new energy sources. Accelerate the development of a nationwide unified electricity market, refine market rules and mechanisms, strengthen the continuous operation of medium- and long-term markets, expand the scale of green electricity and green certificate trading, and fully leverage the role of market mechanisms to support power supply security and facilitate the energy transition. Support the construction and operation of large-scale wind and photovoltaic power bases, better accommodate the needs of new energy sources participating in the market, and actively promote diversified trading models such as bundled transactions involving wind, solar, hydro, and thermal power, generation rights trading, and priority substitution by new energy sources. In 2023, the volume of electricity traded in the market for new energy sources reached 551.5 billion kilowatt-hours, accounting for 45% of the total electricity generated by new energy sources.

Zezhou Beiyicheng Photovoltaic Power Plant in Jincheng, Shanxi Province

Carry out research to overcome core technological bottlenecks and accelerate the development of a new-type power system. We will continue to strengthen innovation in new energy technologies, launch research efforts on next-generation power system technologies, increase R&D investment in the new energy sector, and organize and carry out 163 scientific and technological projects. We will further promote and improve the new energy standards system, taking the lead in drafting 7 international standards and 17 national standards. We will actively participate in both international and domestic exchanges, working together with all parties to drive high-quality development of new energy.

In the first half of 2024, the new energy sector within the State Grid’s operating area continued to maintain a strong momentum of rapid growth and efficient consumption. The newly added installed capacity of wind and solar new energy reached 96.15 million kilowatts, representing a year-on-year increase of 18%. Among this, New distributed photovoltaic capacity reached 44.62 million kilowatts, an increase of 18% year-on-year. New energy generation totaled 734.4 billion kilowatt-hours, up 18% over the previous year. The utilization rate of new energy sources reached 96.2%, continuing to maintain a relatively high level.

The National Wind-Solar-Storage-Transmission Demonstration Project located in Zhangjiakou, Hebei Province.

According to the national plan, by 2025 and 2030, the share of non-fossil energy consumption in China will reach approximately 20% and 25%, respectively. The power supply structure will continue to shift toward cleaner sources, and the construction of new-type power grids will be accelerated. Electricity demand is expected to grow relatively rapidly, while energy storage will show a trend toward diversified development. Meanwhile, policy mechanisms and market development will steadily advance. State Grid Corporation will firmly shoulder its responsibilities in the power grid system, balancing secure supply with the energy transition. It will vigorously promote high-quality development of new energy sources, strengthen coordinated development of power grids at all levels, enhance digital and intelligent upgrades of the power grid, bolster capacity-building for power regulation and control, reinforce the construction of the power dispatching and control system, improve the load management system, boost energy conservation and efficiency across society, elevate scientific and technological innovation to a high level, intensify research on supporting policies and mechanisms, and strengthen integrated coordination and management innovation—these ten key areas of work—to better support and serve China’s modernization through high-quality development of energy and power.