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Understanding the Impact of Distributed Generation on the Energy Market

Understanding

How Will Distributed Energy Generation Evolve in the Context of Market Fluctuations?

As of April 7, 2025, distributed energy generation has become a crucial element in the transition of energy systems. By the end of 2024, the total installed capacity of distributed energy generation in China is projected to reach 3.7 billion kilowatts, marking a significant increase compared to 121 million kilowatts in 2013, accounting for 42% of the total distributed energy generation capacity. In 2024, the new installed capacity is expected to reach 1.2 billion kilowatts, representing 43% of that year’s new additions.

The capacity of distributed energy generation systems is growing increasingly large, and the industry is experiencing rapid development. A recent report titled “The Impact of Changes in the Power Market on New Energy Development Quality” indicated that the distributed energy generation sector is poised for further expansion. The report suggests that the current phase of the market is evolving towards new standards for energy pricing and regulation, aiming for high-quality development.

As distributed generation becomes more prominent, it is essential to address issues such as grid stability, wave dynamics, and the integration of energy resources. This integration will require coordinated management strategies to enhance the overall efficiency of the energy system. The experts emphasized the importance of creating a balanced energy market that accommodates both distributed and centralized energy sources, aiming for a sustainable and efficient energy landscape.

In the future, renewable energy sources must become the primary support for the grid. Addressing the dynamic nature of energy generation and consumption will be critical in achieving a reliable and resilient energy system. The energy industry must adapt to changing demands and technological advancements, ensuring that distributed energy generation remains a viable solution for meeting energy needs while reducing carbon emissions.

As distributed energy generation systems continue to grow, it is expected that they will be integrated with advanced smart grid technologies, allowing for better control and management of energy resources. Investment in these technologies will drive efficiency and sustainability, supporting the overall goals of the energy sector.

In conclusion, the future of distributed energy generation in China is bright, with policies and innovations set to facilitate rapid advancements. The ongoing evolution in energy markets will shape how distributed systems are deployed, ensuring they effectively contribute to a greener and more sustainable energy future.