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Development of smart microgrid powered by renewable energy in China: current status and challenges

ABSTRACT During the ‘13th Five-Year Plan period’ (2016–2020), one of the main targets for China's energy strategy is to develop a new generation of power system, integrating high shares of renewable energy sources. This implies that the technology industrialisation of microgrid powered by distributed generation of renewable energy is becoming crucial. This paper carries out a comprehensive study of the status and challenges of developing microgrid, based on case studies of demonstration projects of microgrid in China during different developmental stages. The focus is on the effects of government policies, technical innovations and changes in the business model of electricity market on the promotion of microgrid in China and the reformation of electricity market in China. The ultimate target for the reformation of power system in China is to finish the transformation from a linear business model of centralised power system.