"The National Energy Internet Action Plan" Released

Previously hotly debated within the industry, the final draft of the forthcoming "National Energy Internet Action Plan" was finally unveiled on February 29 under the title "Guiding Opinions on Promoting the Development of 'Internet+' Smart Energy" (hereinafter referred to as the "Guiding Opinions"). This set of "Guiding Opinions," hailed by industry insiders as the overarching blueprint for the energy internet, seems to signal that 2016 will indeed mark the inaugural year of the energy internet. Notably, although the title of the "Guiding Opinions" avoids using the widely popular term—"energy internet"—and instead opts for the more precise phrase "'Internet+’ Smart Energy,"

Release date:

2016-03-01

  Previously hotly debated within the industry, the final draft of the upcoming "National Energy Internet Action Plan" was finally unveiled on February 29 under the title "Guiding Opinions on Promoting the Development of 'Internet+' Smart Energy" (hereinafter referred to as the "Guiding Opinions").

  This "Guiding Opinions" has been hailed by the industry as the top-level design for the energy internet, seemingly signaling that 2016 will become the inaugural year of the energy internet.

  It's worth noting that, although the title of the "Guiding Opinions" deliberately avoids using the popularly embraced term—"Energy Internet"—and instead opts for the more precise phrase "'Internet+' Smart Energy," the document itself still refers to the "Energy Internet" as the shorthand for "'Internet+' Smart Energy."

  The "Guiding Opinions"指出 that, in the context of the global new wave of scientific and technological revolution and industrial transformation, the deep integration of internet principles, advanced information technology, and the energy sector is driving the emergence of cutting-edge technologies, innovative business models, and entirely new industry formats in the energy internet. The energy internet serves as a crucial strategic cornerstone for advancing China's energy revolution, playing a vital role in increasing the share of renewable energy, promoting the clean and efficient utilization of fossil fuels, enhancing overall energy efficiency, fostering energy market openness and industrial upgrading, creating new drivers of economic growth, and elevating the country's level of international energy cooperation.

  For the Energy Internet

  Set up two stages of development

  The "Guiding Opinions" also point out that technologies, models, and business formats related to the energy internet are all currently in the exploration and development stage. Based on this assessment, the "Guiding Opinions" outline a plan to advance the energy internet in two phases over the near to medium term: first, launching pilot demonstrations; and subsequently scaling up and promoting these initiatives to ensure tangible results.

  Among these, the first phase, spanning from 2016 to 2018, focused on advancing pilot and demonstration projects for the energy internet: a number of pilot projects of various types and scales were successfully established. Key breakthroughs were achieved in several critical technologies and core equipment, bringing the energy internet technology to an internationally advanced level. Meanwhile, initial market mechanisms and a comprehensive market framework for the energy internet began to take shape. A preliminary energy internet standards system was also put in place, resulting in the development of a set of key technical specifications and standards. This phase also spurred the emergence of new business models, such as energy finance and third-party integrated energy services, while nurturing a group of competitive, innovative market players. Additionally, sustainable and scalable development models were explored, and valuable pilot experiences were accumulated to support broader reforms.

  The second phase, spanning from 2019 to 2025, will focus on promoting the diversified and large-scale development of the energy internet. By this stage, a preliminary energy internet industry ecosystem will be established, positioning it as a key driver of economic growth. A relatively complete market mechanism and framework for the energy internet will also be put in place. Furthermore, a comprehensive system of technologies and standards will take shape, paving the way for internationalization and ensuring global leadership in energy internet development. Additionally, an open and collaborative energy internet ecosystem will emerge, significantly enhancing overall energy efficiency, boosting the share of renewable energy, and achieving notable progress in the clean and efficient utilization of fossil fuels. Public participation in this initiative will soar, providing strong support for the ongoing energy production and consumption revolution.

  To promote the healthy development of the energy internet, the "Guiding Opinions" outlines 10 multi-dimensional key tasks: advancing the construction of intelligent energy production and consumption infrastructure, strengthening the development of integrated multi-energy networks, fostering deep convergence between energy and information & communication infrastructures, creating an open and collaborative energy internet ecosystem, pioneering new models for energy storage and electric vehicle applications, introducing innovative approaches to smart energy consumption, nurturing flexible green energy trading markets, expanding energy big data service applications, driving breakthroughs in critical energy internet technologies, and establishing a world-class energy internet standards system.

  Distributed Energy Development

  It will become even hotter.

  From the industry's perspective, some of the measures outlined in the "Guiding Opinions" are now being vigorously implemented.

  For example, under the item "Promoting Intelligent Production of Renewable Energy," the Guidance Opinions encourage the development of smart wind farms, intelligent photovoltaic power stations, and other facilities, as well as Internet-based smart operation cloud platforms, to achieve intelligent renewable energy production. Users are also encouraged to build integrated energy infrastructure such as combined cooling, heating, and power systems, heat pumps, and industrial waste heat and pressure utilization systems. This will foster the coordinated development of distributed renewable energy sources with natural gas-based distributed energy systems, thereby enhancing the overall efficiency of distributed renewable energy applications. Additionally, the guidelines promote synergistic production between renewable and fossil fuels, driving the clean replacement of inefficient fossil energy sources like scattered coal burning. Finally, it calls for the establishment of access facilities and supporting systems—such as metering, trading, and settlement mechanisms—that enable renewable energy to participate effectively in the market.

  Previously, Wang Hong, President of Oriental Rise, China's leading photovoltaic company listed on the A-share market, stated in an interview with a reporter from the Securities Daily, "Distributed energy is undoubtedly a crucial component of the energy internet, and distributed photovoltaics represent the optimal solution within the realm of distributed energy. Given the nation's strong emphasis on developing the energy internet, this will inevitably accelerate the growth of distributed energy systems as well."

  Meanwhile, under the initiative "Developing New Models for Energy Storage and Electric Vehicle Applications," the Guidance Document emphasizes the importance of fully leveraging renewable energy resources such as wind and solar power. It calls for因地制宜 (tailoring approaches to local conditions) in building new-energy charging and swapping stations—and other infrastructure—in areas like cities, scenic spots, and highways. These facilities will provide services such as electric vehicle charging, discharging, and battery swapping, ultimately enabling the coordinated and optimized operation of electric vehicles with renewable energy sources.

  Regarding the most critical area—“advancing key technological research for the energy internet”—the Guiding Opinions propose supporting R&D of core equipment for the energy internet, fostering innovation in key technologies for cyber-physical systems, and bolstering development of cutting-edge technologies for system operation and trading.

  Additionally, the Securities Daily previously reported that the "Notice on Issuing the 2016 Project Application Guidelines for Key Special Projects such as High-Performance Computing under the National Key R&D Program," recently released by the Ministry of Science and Technology, includes "Smart Grid Technologies and Equipment" among the first batch of 10 key R&D projects officially launched.

  According to the relevant documents, the "Smart Grid Technology and Equipment" special program will focus on deploying 23 key research tasks across five innovation chains (technical areas): large-scale integration and consumption of renewable energy, flexible interconnection of mega-grids, interactive power usage between diverse users and supply-demand systems, complementary multi-energy distributed energy systems and microgrids, and foundational supporting technologies for smart grids. The program will run for a five-year period, from 2016 to 2020.

  Under the 5th innovation chain—“Basic Supporting Technologies for Smart Grids”—of the special program on “Smart Grid Technologies and Equipment,” management has also specifically established a topic titled “Fundamental Theories for Planning, Operation, and Trading in the Energy Internet,” which is categorized as a basic research project.

  The "Guiding Opinions" indicate that the energy internet will be advanced in two phases over the near to medium term: the first phase spans from 2016 to 2018, and the second phase runs from 2019 to 2025.