Summary of Key Points
Smart microgrids are an important complement to the new type of power grid planned by the state (with initial construction expected by 2030). However, the pace of deployment of user-side photovoltaic and energy storage microgrid projects has slowed down, with some companies turning to overseas markets. This is not due to a decline in their value—these microgrids remain crucial for the local consumption of renewable energy and for responding to price changes in electricity prices—but rather because the public service capabilities necessary for their large-scale development (such as mechanisms, data systems, and coordination for power dispatching) are not yet fully established. The article identifies three major practical challenges and highlights that the root of the problem lies in the insufficient provision of these public services. It proposes specific approaches to enhance these three types of public service capabilities: mechanisms, data systems, and integration with distribution networks.
Detailed Analysis
1. Smart Microgrids: Highly Valued by Policy, but Cold in Reality
The state clearly views smart microgrids as a valuable addition to the new power grid framework, yet they have faced a lack of interest from the market: fewer new projects are being initiated, and some companies are seeking opportunities overseas. Why? It's not that they are useless; they can help companies use renewable energy locally (eliminating the need for expensive long-distance fossil fuel power), cope with price fluctuations (e.g., by using energy storage to discharge electricity during peak times), and integrate distributed photovoltaic and energy storage resources into the power grid. The problem is that the barriers to building and operating them are currently too high, deterring both investors and users.
2. Three Major Hurdles to the Development of User-Side Microgrids
##### (1) Difficulty in Making Investment Decisions
- For Owners: The initial investment in photovoltaic, energy storage, and microgrid systems is substantial, and the return on investment is slow. Additionally, changing electricity pricing mechanisms (time-of-use rates, spot markets), and subsidy policies make it difficult to predict profits accurately.
- For Companies: The energy needs of individual users do not always match their available resources (e.g., limited roof space). The profitability of such projects is uncertain, and issues like the need for dedicated lines for direct green energy transmission and complex approval processes, along with slow customer payments and high default risks, also deter investment.
##### (2) Poor Operation of Existing Projects
Many existing microgrid projects operate independently: they either rely solely on photovoltaic or energy storage, or neither is integrated. In the current complex electricity market (with time-of-use pricing and demand response requirements), without intelligent dispatching and forecasting capabilities, these projects struggle to generate profits, leading owners to be reluctant to invest further.
##### (3) Lack of Coordination between Distribution Networks and Microgrids
Microgrids could help distribution networks solve problems such as peak load management and voltage stabilization, but this is not happening due to:
- Planning Issues: When expanding distribution networks, microgrid resources are not taken into account, leading to duplicate investments.
- Discoordination in Dispatching: Distribution networks do not know how to utilize microgrid resources effectively (e.g., when to call for energy storage discharge) and lack clear compensation rules. Moreover, the systems used by photovoltaic and energy storage facilities may belong to different entities, making coordination difficult.
3. The Root of the Problem: Insufficient “Public Services” for the New Power Grid
In the past, power grids operated under a centralized model where the state bought and sold electricity; users simply consumed it, and the grid was responsible for delivery. Now, companies can build their own photovoltaic and energy storage facilities and sell excess electricity to others or even participate in power dispatching, creating a new set of public service needs:
- How to quickly match renewable energy supply with demand?
- How to ensure seamless data exchange between different systems?
- How to guarantee the safe operation of microgrids when they are called upon by the grid?
Without these services, microgrids will remain small-scale projects and unable to achieve large-scale deployment.
4. Approaches to Enhance Public Service Capabilities
##### (1) Mechanism and Product Development
Simplify approval processes for small-scale renewable energy projects (e.g., allowing photovoltaic systems on industrial park rooftops to sell excess power to each other). Power grids can reuse existing infrastructure and charge reasonable service fees. Establish a platform similar to an “electricity marketplace” to facilitate the matching of renewable energy supply and demand, addressing issues such as metering, settlement, and certification of green energy usage rights, thus enabling smaller companies to participate more easily.
##### (2) Data Development
Create standardized API interfaces for efficient data exchange between microgrids, virtual power plants, and trading centers. This will allow systems to automatically exchange information, enabling AI and intelligent algorithms to improve response times.
##### (3) Integration Management Development
- Service Application Systems: Define clear guidelines for when distribution networks need microgrid assistance (e.g., during emergencies or peak load management), how to utilize their resources, and the compensation structure.
- Planning and Operation Systems: Incorporate microgrid resources into distribution network planning to avoid duplicate investments (e.g., using microgrid energy storage for peak load management instead of building additional infrastructure).
- Technical Certification: Ensure that microgrid equipment is safe and compliant, preventing potential risks during grid operations.
5. Microgrids as a Barometer for the New Power Grid
Smart microgrids are like the “umbrella” that protects the new power grid ecosystem: their successful development indicates a well-defined profit mechanism, smooth data exchange, and mature coordination between systems, indicating a healthy industry ecosystem. Conversely, difficulties in their deployment reflect shortcomings in public services. To achieve large-scale adoption, the entire industry must work together to establish the necessary public service infrastructure, making it easier for investors to enter the market, enabling better resource utilization, and providing stability for the industry.
The core message of this article is that smart microgrids have significant value, but what is lacking are the foundational public services required for their widespread adoption. Only by addressing these shortcomings can they become a vital pillar of the new power grid framework.