Nation charts development path for VPPs to secure power supply

New guidelines in place to boost grid flexibility, clean energy integration

China is banking on virtual power plants (VPPs) as a crucial tool to enhance its power grid's flexibility and accelerate the integration of renewable energy sources, according to new policy guidelines.

As the world's largest market for low-carbon energy investment, China is aggressively pursuing VPPs to bolster its grid flexibility and renewable energy integration, setting ambitious targets to reach 20 gigawatts of virtual power plant capacity by 2027 and 50 GW by 2030, according to new guidelines.

The directives, jointly issued by the National Development and Reform Commission and the National Energy Administration, highlight the increasing importance of VPPs in China's evolving power system and electricity market.