Natural Resources Defense Council - Shenzhen Power Supply Bureau


Establish market mechanisms for energy demand response, integrate renewable energy into power grids, and develop best practices for the design of electricity pricing and grid planning policies.

This EcoPartnership will work on the following areas:

  • Apply virtual power plant technologies.
  • Solve challenges related to data-driven grid planning and optimized operation under the market mechanism.
  • Solve issues related to the mutual influence of demand-side response and power supply quality.
  • Mitigate bottlenecks of data access and information transmission.
  • Solve issues with actual implementation and operation of business models and supporting policies.

Anticipated outcomes include:

  • Establish two demonstration areas for the balanced supply-demand interaction of green power (Nanshan Yuehai area, Dapeng new area).
  • Establish a multiple user access platform for the balanced power supply-demand interaction within urban areas.
  • Establish a centralized dispatching virtual power plant with a scale of 20 megawatts (MW).

Key Accomplishments:

The EcoPartnership has completed research on the upgraded Qinghai Project Approach (QPA) method, which is an assessment mechanism for smart grid systems. An associated software tool, QPA 2.0, has also been developed, and is now being tested for its official launch. The assessment results obtained from QPA 2.0 will provide important evidence to make the business case and policy design for demand-side resource application, together with smart grid technologies.

The QPA 2.0 tool has several advancements compared to the previous version: (1) comprehensiveness - it evaluates the whole power system, from generation, transmission, distribution, to retail markets; (2) broader application - it is more inclusive when designing assessment indicators, target groups, etc.; (3) multi-faceted approach - it incorporates both quantitative and qualitative analyses; and (4) visualization - the software makes it possible to visualize the assessment results with increased user-friendliness.

A case study on a microgrid project of a hotel at Yougan Bay in Shenzhen has been assessed. The project incorporates 1 megawatt hour (MWh) solar power, battery storage, and electric vehicle charging piles to manage the power demand throughout the day. It utilizes off-peak power with energy storage capability, and can also self-power for four hours during any grid system emergency. The economic benefits from reducing capacity by 4% are estimated to be 2.6 million Renminbi (RMB) from 2018 – 2028. There are additional benefits from increased reliability and deferred investment, which adds another 500,000 RMB of economic value every year.

In 2020, Shenzhen Power Supply Bureau was involved in the International Electrotechnical Commission (IEC) 63189-1 and IEC 63189-2 standard development (related to virtual power plants), and was working to incorporate the EcoPartnership project as a case study in the standards. Shenzhen Power Supply Bureau also provided training workshops to internal departments, about a dozen of people attended. 

Work Plan: 
Task 1. Research New Business Models
Research new business models with regards to power supply-demand interaction, development potentials, and required supporting policies under the market competition mechanism.
Task 2. Establish Household Energy Management Systems
Establish household energy management systems based on “Internet Plus.”
Task 3. Explore Demand-Side Response Interaction Systems
Explore demand-side response interaction systems for multiple commercial and industrial consumers (including new energy vehicles) based on the distribution grid.