Demand Side Management in China: Market, Policies, and Future Trends

Abstract

China is increasing its efforts in implementing demand side management (DSM) programs as a method to reduce peak electricity demand and match demand with renewable resources. These efforts are motivated by the country’s ambition to address several challenges, including emission reduction, renewables integration, peak shaving, and improving load factor and ambition for net zero emission. DSM service-providers are the enterprises that orchestrate DSM events alongside of the power system operator and end-users to achieve DSM goals. This paper presents a comprehensive study of the market, opportunities, and the challenges facing the emerging DSM market in China. The ongoing reform of China’s power system and the effects on the DSM market are discussed. The most notable DSM project in China in recent years are presented. The challenges and opportunities for the DSM specific to China are discussed.