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Regulatory Pathways for Smart Grid Development in China Gert Brunekreeft · Till Luhmann Tobias Menz · Sven-Uwe Müller Paul Recknagel Editors Regulatory Pathways For Smart Grid Development in China Regulatory Pathways For Smart Grid Development in China Gert Brunekreeft Till Luhmann Tobias Menz Sven-Uwe Müller Paul Recknagel (Eds.) Regulatory Pathways For Smart Grid Development in China Editors Gert Brunekreeft Jacobs University Bremen gGmbH Bremen, Germany Till Luhmann, Tobias Menz BTC Business Technology Consulting AG Oldenburg, Germany Sven-Uwe Müller, Paul Recknagel Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Eschborn, Germany ISBN 978-3-658-08462-2 ISBN 978-3-658-08463-9 (eBook) DOI 10.1007/978-3-658-08463-9 Library of Congress Control Number: 2015941028 Springer Vieweg © The Editor(s) (if applicable) and the Author(s) 2015. The book is published with open access at SpringerLink.com Open Access This book is distributed under the terms of the Creative Commons Attribution Noncommercial License, which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited. This work is subject to copyright. All commercial rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broad-casting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper Springer is part of Springer Science+BusinessMedia (www.springer.com) v Project information Editors Prof. Dr. Gert BRUNEKREEFT, Jacobs University Bremen gGmbH - Dr. Till LUHMANN, BTC Business Technology Consulting AG - Dr. Tobias MENZ, BTC Business Technology Consulting AG - Dr. Sven-Uwe MÜLLER, Deutsche Gesellschaft für Internationale - Zusammenarbeit (GIZ) GmbH Paul RECKNAGEL, Deutsche Gesellschaft für Internationale - Zusammenarbeit (GIZ) GmbH Key authors Prof. Dr. Gert BRUNEKREEFT, Jacobs University Bremen gGmbH - Marius BUCHMANN, Jacobs University Bremen gGmbH - Christian DÄNEKAS, OFFIS Institut für Informatik e. V. - Dr. Xin GUO, BTC Business Technology Consulting AG - Dr. Till LUHMANN, BTC Business Technology Consulting AG - Dr. Christoph MAYER, OFFIS Institut für Informatik e. V. - Dr. Tobias MENZ, BTC Business Technology Consulting AG - Marcus MERKEL, EWE NETZ GmbH - Prof. Dr. Christian REHTANZ, ef.Ruhr Forschungs-GmbH Contributing authors André GÖRING, OFFIS Institut für Informatik e. V. - Andre HERRMANN, BTC Business Technology Consulting AG - Ray KODALI, BTC Business Technology Consulting AG - Paul RECKNAGEL, Deutsche Gesellschaft für Internationale - Zusammenarbeit (GIZ) GmbH Dr. Michael STADLER, BTC Business Technology Consulting AG - Dr. Mathias USLAR, OFFIS Institut für Informatik e. V. - Nils VOGEL, BTC Business Technology Consulting AG Project steering group in China CHEN Tao, National Energy Administration of the P.R. China - Dr. TONG Guangyi, National Energy Administration of the P.R. China - GUO Tao, National Energy Administration of the P.R. China - BU Hongfang, National Energy Administration of the P.R. China Project group of Chinese experts Dr. DONG Rick, China Southern Power Grid Electric Power Research Institute - Dr. HUANG Han, State Grid Energy Research Institute - Dr. JIA Bin, ENN Energy Holdings Limited - Dr. SHI Yaodong, Development Research Center of the State Council - Prof. Dr. WANG Shouxiang, Tianjin University - Academician, YU Yixin, Chinese Academy of Engineering, Prof., Tianjin University vi Project information Project management - Dr. Tobias MENZ, BTC Business Technology Consulting AG Project coordination in China Paul RECKNAGEL, Deutsche Gesellschaft für Internationale - Zusammenarbeit (GIZ) GmbH Consortium Members BTC Business Technology Consulting AG, Oldenburg - Jacobs University Bremen gGmbH, Bremen - OFFIS Institut für Informatik e. V., Oldenburg - ef.Ruhr Forschungs-GmbH, Dortmund - EWE NETZ GmbH, Oldenburg Project Initiation & Funding This study was conducted as part of the “Sino-German Climate Change Programme” implemented by Deutsche Gesellschaft für Internationale Zusammen- arbeit (GIZ) GmbH on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ). Project Term January 2013 to June 2014 Notice The content of this study does not reflect the official opinion of the National Energy Administration of the P. R. China. Responsibility for the information and views expressed in the study lies entirely with the author(s). Neither the National Energy Administration of the P. R. China nor any person acting on its behalf may be held responsible for the use which may be made of the information contained therein. vii Preface by Prof. Dr. Dr. Klaus Töpfer, Executive Director of the Institute for Advanced Sustainability Studies, Potsdam Source: Schulzendorff Until 2025, about 250 million people will move to cities in China, where by then there will be 221 cities with more than 1 million inhabitants. They will be clustered in about 11 regions with more than 60 million people each. In order to ensure energy supply with reduced impact on health and the environment a central element of the Chinese governments’ five year plan is developing smart eco-cities. With this, the conservation of energy, water, land and materials, reducing pollution, optimizing the transportation, protecting the environment, and improv- ing building comfort, health and safety should be maximized. This will be a critical moment in the acceleration of industrialization, urbanization and rural development providing great opportunities in many respects, business opportunities for the economic sector and saving potential for millions of households. As China increasingly embraces clean energy, with newly set renewable energy targets and energy efficiency, smart grid capabilities are crucial for achieving and driving the low-carbon transition. With increasing shares of power from renewable energy facilities with their specifics of intermittency, the transformation of the demand and supply sides towards more flexibility is vital. This is recognized in the 12th Five-Year Plan for National Economic and Social Devel- opment, where the People’s National Congress has set up a goal for the acceleration of smart grid developments. Additionally to balancing the demand and supply sides smart grids can potentially contribute to a reduction in overall need of energy of up to 25 % and reduce the costs of integrating renewable energy into the power system. Doing this will both be useful for the economy, opening up new business models and be a challenge for the regulators, who need to create a supportive framework. Such a regulatory basis should provide incentives and ensure an acceleration of the smart grid development also encouraging competition in order viii Preface to fuel innovation. Supporting the development of industrial clusters, by creating special in- dustry funds can be one option to fully realize the potential of the economic opportunity of the smart grid development. Considering that China in 2013 for the first time surpassed the spending of the United States on smart grid technologies, accounting for more than a quarter of the worldwide smart grid spending, it is clear that a massive transformation of the coun- try’s energy landscape is underway. The potential of being a global leader in the technology development and serving as a role model in smart energy system development however still implies regulatory challenges in order to balance the energy policy goals of reliability, afford- ability and sustainability – keeping in mind that the social dimension of energy is central to sustainable energy systems. Sincerely, Prof. Dr. Dr. Klaus Töpfer ix Preface by Dr. Werner Brinker, Chairman of the Board of the EWE AG, Oldenburg Europe is committed to the decarbonization of its economy, driven by the European Union (EU) climate and energy policies on renewable energy, low carbon emissions, energy savings and energy efficiency. The further development of the energy sector is pivotal to meeting these objectives, ensuring the transition towards a more sustainable energy system and driving in- novation in the energy sector. While the German energy sector is already well prepared for a successful integration of decen- tralized power generation from renewable energy sources, Germany is currently heading the necessary legal and regulatory steps to build future-oriented electricity networks, complete the market integration of renewables and ensure at the same time the functioning of electric- ity markets. Automation as well as information and communication technology (ICT) are playing an im- portant role in this context. So called smart grids are deemed to improve the efficiency, reliabil- ity, and
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