In this Special Report, Yang Dechang summarizes current research on and deployment of microgrids in China, including an overview of the history of microgrids in China, two examples of microgrid projects currently operating in China (Dongao Island and Sino Singapore Tianjin Eco-City), progress on regulation and policies related to integration of microgrids with central grids, and key evolving microgrid technologies.
A summary of this report follows. A downloadable PDF file (0.8 MB) of the full report is here.
Yang Dechang is a Professor in the Institute of Power Supply and Distribution Technologies, College of Information and Electrical Engineering, China Agricultural University.
This report was produced for the Regional Energy Security (RES) Project funded by the John D. and Catherine T. MacArthur Foundation and includes material presented at the RES Working Group Meeting, Tuushin Best Western Premier Hotel, Ulaanbaatar, Mongolia, December 9-11, 2019.
The views expressed in this report do not necessarily reflect the official policy or position of the Nautilus Institute. Readers should note that Nautilus seeks a diversity of views and opinions on significant topics in order to identify common ground.
This report is published under a 4.0 International Creative Commons License the terms of which are found here.
Banner image: The Dongao Island megawatt-level independent smart microgrid project was China''s first megawatt-level microgrid system with complementary wind, solar, diesel, and energy storage, and was also China’s first commercial-run island smart microgrid system. The power supply is flexible and especially suitable for island and remote areas. The diesel power generation in the system has been greatly improved by the addition of the other system components, reducing power generation cost and island pollution. Image from here.
1.1 Brief Summary of the Status and Deployment Trends of Microgrids (MG) in China
1.2 China''s Current and Planned Policies Regarding MG
At present, the development of domestic microgrids in China is at the stage of building projects as demonstrations for commercial operation. There are still many challenges in the practical application of microgrids in China. Policies, technologies and economics are the three main factors restricting the further development of microgrids.
First, based on an analysis of policy factors, China is paying more and more attention to the development of new energy sources and the efficient use of energy, and the policy orientation towards these topics continues to be favorable. Current electric power regulations, however, are in conflict in some ways with the construction and operation modes of microgrids. The State’s policies on microgrid subsidies and on-grid tariffs are still unclear as of this writing. There is also a lack of laws and regulations related to microgrids, which has become one of the main obstacles to future microgrid development.
As technologies mature, the cost of renewable energy is gradually decreasing. The increasing demand for renewable energy, the development of the energy storage industry, and continuous increases in the price of fossil energy will encourage the development of microgrids so that they account for an increasing proportion of electricity production. With these ongoing changes, China’s microgrid market will enter a stage of rapid growth.[4]
1.3 Map to Remainder of Paper
2 Definition, History of Development, and Types of Mini- and Microgrids in China
2.1 Definition of Mini- and Micro-grids in General
The term "microgrid" refers to a small power generation and distribution system composed of distributed generators, energy storage devices, energy conversion devices, related loads, monitoring devices and protective devices. It is an autonomous system that can realize self-control, protection and management. It can run in conjunction with the external power grid or in isolation. From the structural point of view, microgrid can usually be divided into four aspects: distributed micro-energy, energy management system, transmission and distribution system and load. The structure of microgrids is shown in Figure 1.
Microgrids generally have four basic features:
(1) "Micro", microgrid voltage levels are generally below 10 kV (kilovolts), the system scale is generally MW (megawatt) level or smaller, the grid is connected with end users, and the electric energy provided in the microgrid is typically used locally.
(2) "Cleaning", the distributed power supply inside a microgrid is mainly clean energy, or uses power generation with the goal of comprehensive utilization of energy.
(3) "Autonomous", the internal power of a microgrid can achieve full or partial self-balancing of electricity demand and supply.
(4) "Friendly", microgrids can reduce the impact of large-scale distributed power access on the central or main power grid, provide users with high-quality and reliable power, and achieve smooth switching between central-grid-connected and off-grid modes.
2.2 Types of Microgrids
The Operation modes of microgrids include grid-connected mode, off-grid mode, and the conversion process mode between the two. The characteristics of each operational mode are shown in Table 1.
Operational modes for microgrids are grid-connected and island micro-grid modes.
（1）Grid-connected microgrid
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