Interpretation of Guidelines for the High-Quality Development of Distribution Networks

As a major energy infrastructure, the distribution network plays a significant role in ensuring power supply, supporting economic and social development, and improving people's livelihoods. Especially under the background of the "dual carbon" goals, the supportive role of the distribution network is even more prominent. It serves as the access carrier for distributed power sources and electric vehicle charging facilities, and is a key support for the comprehensive and efficient utilization of various distributed energy sources and for power users to save energy and reduce emissions. In recent years, extreme weather events such as typhoons, rain, snow, and ice have frequently caused power outages, exposing the insufficient safety and reliability of power supply in the distribution network. At the same time, with the rapid development of distributed new energy, the increasing scale of electric vehicles, and the continuous advancement of power market construction, higher demands have been placed on the development of the distribution network. From equipment to structure, from planning to operation, and from management to market, the distribution network faces many challenges.

First, the foundation for supply security still needs to be further strengthened. Through nearly 20 years of continuous investment and construction renovation, China's distribution network's power supply capacity and reliability have greatly improved, especially in some developed urban areas where the operation level of the distribution network has reached the international advanced level. However, it should also be noted that in some towns (especially old residential areas) and rural areas, the structure of the distribution network is still weak, power supply reliability is very low, potential operational risks are high, disaster resistance is insufficient, and the energy efficiency and intelligence level of equipment urgently need to be improved.

Second, the capacity to support new energy and emerging business models is insufficient. In recent years, many regions in China have seen explosive growth in distributed photovoltaic power, causing serious reverse overloads on distribution network lines and transformers, and prominent voltage limit violations, forcing some areas to slow down photovoltaic development. Meanwhile, China's electric vehicles have also entered a rapid development phase. On one hand, the number of electric vehicles is growing rapidly; on the other hand, there is an increasing demand for fast charging of electric vehicles. High-power short-time charging poses significant challenges to the operation of the distribution network. Along with the development of distributed photovoltaics and electric vehicles, the installed capacity of energy storage in distribution systems is also rapidly increasing. However, how to effectively utilize energy storage to solve problems in the distribution network still requires continuous practical exploration. With the widespread application of new technologies such as microgrids, AC/DC hybrid distribution networks, and distributed intelligent grids, the business models of future distribution networks will undergo significant changes. Enhancing the carrying capacity of the distribution network to support China's energy transition will become an inevitable mission for future distribution networks.

Third, coordination and integration across all stages of distribution network development need to be strengthened. The typical characteristics of the distribution network are many types and large quantities of equipment, involving complex factors at various stages. Under the new situation, it is necessary to further strengthen the whole-process management from distribution network planning to project investment management and engineering construction, and from dispatch operation to operation and maintenance services. In planning, it is necessary to coordinate the planning of new energy, electric vehicles, energy storage, and distribution network topology, strengthen the connection with urban and rural overall planning and territorial spatial planning, and also unify planning with other infrastructure. In project investment management, it is necessary to increase investment by power grid enterprises, encourage diversified entities to invest in the distribution network, and actively innovate various investment methods. In engineering construction, multi-department coordination and collaboration with various municipal construction projects are required. In dispatch operation mechanisms, it is important to fully utilize user-side resources to absorb renewable energy, make full use of new technologies such as microgrids and virtual power plants to achieve interactive supply and demand between power users, vehicle-to-grid interaction for electric vehicles, and coordinated source-load-storage operation in the distribution network, and make good use of market mechanisms to both utilize renewable energy and ensure the safe and reliable operation of the distribution network.

We are pleased to see that in response to the above issues, the National Development and Reform Commission and the National Energy Administration have issued the "Guiding Opinions on the High-Quality Development of Distribution Networks under the New Situation" (hereinafter referred to as the "Opinions"), deploying and promoting the construction, renovation, and high-quality development of distribution networks at the national level. The "Opinions" propose work principles and measures that highlight the goals and missions of future new-type distribution network development, reflect the unique characteristics of the distribution network's own development process, and have strong feasibility. They will play an important guiding role in the construction and development of new-type distribution networks in China.

The distribution network is a capital-intensive infrastructure, and its structural transformation requires a relatively long process. To truly promote the implementation of the "Opinions," the following points need to be achieved. First, strengthen planning guidance. Planning is the foundation of distribution network development; without a solid foundation, everything is unstable. Strengthening planning guidance can effectively improve the investment efficiency of distribution network construction and achieve quality and efficiency improvements in the transition from the current distribution network to the new-type distribution network. Second, adhere to a systematic perspective. The distribution network is the "last mile" of power supply, directly facing power users, with a long chain and many links. It is necessary to coordinate and connect various resource elements to better meet user needs during the development of the new-type distribution network. Third, promote innovation breakthroughs. The new-type distribution network will undergo major changes in system structure, operation mode, and market mechanisms. Many new technologies require continuous exploration. In recent years, the emergence of new entities and new business models such as distributed new energy, new energy storage, electric vehicle charging facilities, microgrids, and virtual power plants requires changes in the distribution network's structural form to better utilize the regulatory capabilities of these entities themselves. At the same time, the operation mode of the distribution network also needs continuous innovative development to create conditions for the participation of many new entities in grid operation, supporting grid safety and economic operation while meeting the value pursuits of these new entities.