Emerging demand-side flexible resources accelerate China's power system transition toward carbon neutrality

Area of Science:

• Energy Systems Engineering
• Environmental Science
• Economics

Background:

• China's power system is undergoing a transition towards carbon neutrality.
• Demand-side flexible resources (DSFR) offer potential solutions for managing this transition.
• The integration of renewable energy sources necessitates enhanced grid flexibility.

Purpose of the Study:

• To quantify the cost reductions achievable through DSFR in China's carbon neutrality transition.
• To identify the most impactful DSFR for grid balancing and renewable energy integration.
• To analyze the influence of DSFR on the overall cost and structure of the future power system.

Main Methods:

• Modeling of China's power system incorporating various DSFR scenarios.
• Cost-benefit analysis of DSFR compared to traditional grid resources.
• Scenario analysis to assess the impact of different DSFR potentials on transition costs.

Main Results:

• DSFR can reduce carbon neutrality transition costs by approximately 20%.
• Flexible electric vehicle charging and power-to-hydrogen loads are major contributors to DSFR.
• DSFR reduces the need for costly energy storage and thermal power generation.

Conclusions:

• Incorporating DSFR is crucial for an economically efficient and technically feasible carbon-neutral power system in China.
• Flexible load demands, particularly power-to-hydrogen, significantly shape the future power system's development and costs.
• DSFR enhances grid stability, facilitates renewable energy accommodation, and reduces fossil fuel dependency.