Currently, China’s demand-side management is still dominated by orderly electricity consumption (regulated measures) and has not yet formed a mature market-based operation mechanism. There are insufficient load management technology reserves and a lack of user awareness in demand response.

This report “Unlocking Demand-Side Flexibility in China” by RMI initially focuses on the status of Demand Side Flexibility (DSF) in the industrial sector of China. This research discusses the technical feasibility and potential of developing DSF during different industrial production processes. Only when the flexible load characteristics of each process are clarified can the flexibility potential be fully realised through the design of market mechanisms.

This report summarises the development status; identifies the main flexibility sources and potentials; and explores the technical, economic, and managerial challenges of industrial DSF development based on literature review and global practice, combined with expert interviews and site visits. The report aims to help industrial DSF play an important role in ensuring reliability and stability of the power system, as well as accelerating the decarbonization process.

Access the complete report here