《RMI：2023電力需求側靈活性系列：工業靈活性潛力及發展現狀報告（英文版）（28頁）.pdf》由會員分享，可在線閱讀，更多相關《RMI：2023電力需求側靈活性系列：工業靈活性潛力及發展現狀報告（英文版）（28頁）.pdf（28頁珍藏版）》請在三個皮匠報告上搜索。

1、Current Status and Potential of Demand Response in the Industrial SectorReport/December 2023Unlocking Demand-Side Flexibility in China:Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorRMI is an independent nonprofit,founded in 1982 as

2、 Rocky Mountain Institute,that transforms global energy systems through market-driven solutions to align with a 1.5C future and secure a clean,prosperous,zero-carbon future for all.We work in the worlds most critical geographies and engage businesses,policymakers,communities,and nongovernmental orga

3、nizations to identify and scale energy system interventions that will cut greenhouse gas emissions at least 50 percent by 2030.RMI has offices in Basalt and Boulder,Colorado;New York City;Oakland,California;Washington,D.C.;and Beijing.rmi.org/About RMIRMI:Yujing Liu,Ziyi Liu,Jun XieChina Electric Po

4、wer Research Institute:Feixiang Gong,Dezhi LiRMI:Zihao Chen,Shuo Gao,Ting Li,Liyue Zhang,Qin ZhouChina Electric Power Research Institute:Songsong ChenAuthors are listed alphabetically.Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorC

5、opyrights and CitationAcknowledgementsYujing Liu,yujingliurmi.org The authors wish to thank the following experts for offering their insights and perspectives on this work:Chong Sun,Marketing Service Center of State Grid Hebei Electric Power CompanyDa Wan,China Aluminum Science and Technology Resear

6、ch InstituteShunjiang Wang,State Grid Liaoning Electric Power Supply CompanyHaijing Zhang,Marketing Service Center of State Grid Shandong Electric Power CompanySpecial thanks to the Climate Imperative Foundation for its support of this report.The analysis presented in this publication is not the opi

7、nion of the experts at the above-listed organizations.AuthorsContactContributorsZiyi Liu,Jun Xie,Yujing Liu,Feixiang Gong et al.,RMI,2023,https:/rmi.org/in-sight/unnlocking-demand-side-flexibility-in-china/.RMI values collaboration and aims to accelerate the energy transition through sharing knowled

8、ge and insights.We therefore allow interested parties to reference,share,and cite our work through the Creative Commons CC BY-SA 4.0 license.https:/creativecommons.org/licenses/by-sa/4.0/.All images used are from iS unless otherwise noted.rmi.org/Authors and AcknowledgmentsUnlocking Demand-Side Flex

9、ibility in China:Current Status and Potential of Demand Response in the Industrial SectorUnlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorIntroduction 5Definition and Development of Industrial DSF 7 Importance of DSF in the future pow

10、er system 7 Definition of DSF and relevant concepts 8 History and status quo of demand-side management in China 9 Industry as potential source of DSF 11 Purpose of the report 13 Main Sources and Potential of Industrial DSF 14 Classification of industrial loads 14 Approaches for demand response in di

11、fferent industries 15 Summary of key industries DSF 16Global and Domestic Practice in Industrial DSF 18 Global practice in industrial DSF 18 Domestic practice in industrial DSF 20Challenges and Outlook of Industrial DSF 23 Challenges of industrial DSF 23 Outlook for near-term efforts to promote indu

12、strial DSF 24Endnotes 26Table of Contentsrmi.org/Introduction 5Definition and Development of Industrial DSF 7 Importance of DSF in the future power system 7 Definition of DSF and relevant concepts 8 History and status quo of demand-side management in China 9 Industry as potential source of DSF 11 Pu

13、rpose of the report 13 Main Sources and Potential of Industrial DSF 14 Classification of industrial loads 14 Approaches for demand response in different industries 15 Summary of key industries DSF 16Global and Domestic Practice in Industrial DSF 18 Global practice in industrial DSF 18 Domestic pract

14、ice in industrial DSF 20Challenges and Outlook of Industrial DSF 24 Challenges of industrial DSF 24 Outlook for near-term efforts to promote industrial DSF 25Endnotes 27Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorIntroductionThe

15、power sector accounts for about 40%of global carbon emissions,and promoting the decarbonization of electricity production and the electrification of end-use consumption has become the consensus in the global response to climate change and the energy transition.The electrification of end-use consumpt

16、ion is a key measure to reduce emissions in the industry,transportation,and building sectors,which will further increase the demand for zero-carbon electricity supply.In 2022,more than 60%of the global electricity supply was still from fossil fuels.Therefore,the construction of a zero-carbon power s

17、ystem has become a common issue faced by all countries.The zero-carbon power system will face dual uncertainties from the supply and demand sides;this will require more system flexibility resources to meet the power balance and to realize a larger scale of renewable energy integration.On the supply

18、side,renewable energy generation technologies like wind power,solar photovoltaic,and hydropower are characterized by intermittency.On the demand side,power loads have become more volatile with the influence of multiple factors such as electrification and frequent extreme weather events.During the lo

19、w-carbon transition,the reliance on fossil fuel power capacity like coal and gas,which conventionally served as major flexibility resources,will continue to decline.Power systems will need more carbon-free flexibility resources to cope with supply-demand uncertainties and achieve the power balance o

20、n multiple time frames:from the annual level down to management of seconds.In recent years,the national power supply and demand balance has been tight,and strengthening load management and developing DSF resources have become urgent tasks in building a new power system.At the national level,the comp

21、ound annual growth rate of electricity consumption between 2015 and 2022 reached 6.1%.The growth rate of the peak load was even higher at 7.1%,showing greater volatility on the load side.At the provincial level,the tight power balance has been more serious in some areas:in July and August 2022,power

22、 grids in 21 provinces had record high electricity consumption loads,and eastern and central China had very tight power balance.In addiIn 2021,the State Council of China issued the Action Plan for Carbon Dioxide Peaking Before 2030.The Action Plan noted two necessities:(1)to accelerate the construct

23、ion of the New Power System with an increasing share in renewable energy sources;and(2)to develop flexibility resources from generation,grid,load,and storage to promote the realization of carbon peaking and carbon neutrality.The Action Plan clarified that building a robust and smart power grid will

24、require significantly improving the power system flexibility capability and accelerating the construction of flexible power generation sources.It also specifies that guiding captive power plants,traditional intensive industrial load,industrial and commercial interruptible load,electric vehicle charg

25、ing network as well as virtual power plants providing system flexibility are key to this transition.Along with economic development and electrification of other sectors,Chinas electricity demand will continue to grow,and the value of demand-side flexibility(DSF)will become increasingly significant.R

26、MIs 2023 report Exploring Chinas Pathway to a New Power System:Bringing Modern Elements Online Before Phasing Out the Old proposed that the flexible participation of the demand side in power balancing is one of the main characteristics of the New Power System.It argued that promoting an observable a

27、nd controllable demand side is an effective means of improving system flexibility.tion to the traditional summer load peak,rmi.org/Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial Sectorwith the adjustment and upgrading of the consumption a

28、nd industrial structure,the load curves in eastern,central,and southern China have hit peaks in winter as well.In February 2022,the tight power balance occurred in certain periods in Jiangxi,Hunan,Sichuan,Chongqing,Shanghai,and Guizhou.There is an urgent need to optimize and upgrade the demand-side

29、management to help close the gap between supply and demand.Whether for reasonable orderly electricity consumption or market-based demand response,mapping out the technical feasibility of user-side demand response and establishing a flexibility resource base form the necessary groundwork.The electric

30、ity consumption of industrial users in China has reached 5,700 terawatt-hours(TWh),accounting for 65%of total electricity consumption in 2022.Considering the comprehensive industrial system and diversified load structure,the industrial sector theoretically possesses significant potential for develop

31、ing DSF.Due to the large single-user power consumption and low communication cost,industrial users are the prioritized load resources in the current practice of orderly electricity consumption.An in-depth investigation of the demand response capabilities of different industries and enterprises can h

32、elp to formulate a more reasonable scheme for power Currently,Chinas 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

33、of user awareness in demand response.In 2023,the National Development and Reform Commission revised the Measures on Demand-side Management of Electricity(2023 edition).It added a specific chapter on demand response for the first time,emphasizing the promotion of demand response toward marketization,

34、normalization,aggregation,and reliability.The target demand response capacity of each province will consist of 3%to 5%of the annual peak load by 2025.It also clarified the prioritization of market-based demand response over regulated measures and required the reasonable implementation of orderly ele

35、ctricity consumption.demand-side management.Based on this background,RMI Chinas DSF research first focuses on the industrial sector.This research will dive deep into the technical issues of developing industrial DSF,that is,the potential of demand response in various industrial production processes.

36、Combining domestic and international practice and progress,this report will identify the main sources and potentials of industrial DSF;explore the technical,economic,and managerial challenges;and specify the important role the industrial DSF plays in building the new power system.rmi.org/Unlocking D

37、emand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorDefinition and Development of Industrial DSFImportance of DSF in the future power systemPower system flexibility refers to the ability of a power system to respond quickly to large power and energ

38、y fluctuations on both the supply and demand side under certain economic constraints.Under the goal of achieving carbon peaking before 2030 and carbon neutrality by 2060,Chinas installed capacity of renewable energy has notably increased,and the share of renewable power generation has grown rapidly.

39、In October 2021,the State Council issued the Action Plan for Carbon Dioxide Peaking Before 2030 and stated the goal of building the new power system with a gradual increase of renewable energy share.incremental power generation in the accelerated transition period of building the new power system by

40、 2030.It also stated that the installed capacity mix and power generation mix of renewable energy should SystemsIn the Action Plan,the proportion of non-fossil energy consumption is expected to reach about 20%by 2025 and 25%by 2030.By the end of 2022,Chinas wind and solar photovoltaic(PV)power accou

41、nted for 29.6%of total installed capacity in the power system and 13.7%of total power generation.In June 2023,the National Energy Administration(NEA)released the Blue Book on the Development of New Power,maintaining that it is necessary to promote renewable energy as the main source of be over 40%an

42、d 20%,respectively,by 2030.This proposed change is expected to lead to non-fossil power sources gradually becoming the main component of installed capacity and power generation during the overall formation period(203045)and consolidation and improvement period(204560).As the building of the new powe

43、r system progresses,the penetration rate of renewable energy power represented by wind and solar PV will continue to increase rapidly,exacerbating the volatility and uncertainty of the power supply.Coupled with the volatility of the demand side,the power system will face a more severe challenge of b

44、alancing supply and demand in the future.Therefore,the flexibility of the power system urgently needs to be improved to ensure the reliability,stability,and security of grid operation.It is difficult to rely on a single technology or a single path to realize the enhancement of power system flexibili

45、ty,and it is necessary to explore the potential across the whole value chain of the power system.At present,power system flexibility in China mainly comes from retrofitted flexible coal power(with a lower minimal stable level),conventional hydropower,pumped storage,electrochemical energy storage,and

46、 gas power units.Among them,the flexibility retrofitting rate of coal power units is still at a low level.In the 13th Five-Year Plan period,the flexibility retrofitting of coal power was completed in less than 60 gigawatts(GW)out of 1,140 GW total coal fleet,and the problems of slow ramping rate,lon

47、g start and shutdown time,and high coal consumption also prevent coal power units from becoming ideal flexibility providers.Conventional hydropower has geographic and seasonal limitations,and its actual flexibility capacity is also affected by joint dispatch of cascade hydropower plants and agricult

48、ural irrigation.Additionally,gas power is subject to the energy security constraints of insufficient domestic gas supply.Pumped storage also has geographical limitations with a long construction cycle.Electrochemical energy storage faces problems such as shorter durations and higher costs.By the end

49、 of 2022,power resources with fast ramping rates such as pumped storage,electrochemical storage,and gas-fired power generation accounted for only 6.6%of the total installed capacity of the 23rmi.org/1Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the In

50、dustrial SectorDefinition of DSF and relevant conceptspower system.Therefore,the stability and reliability needs of the power system cannot be met by generation-side flexibility alone.Grid-side flexibility is also affected by numerous complicating factors,such as line transmission capacity,regional

51、coordination,and power market maturity.DSF,however,is widely distributed,can quickly respond to changes in power supply and demand,and realizes multi-timescale demand response with lower cost.Therefore,the development of DSF has become an urgent need to ensure the secure and stable operation of the

52、power grid.DSF usually refers to the ability of electricity users to adjust their own consumption behavior according to the needs of the power system operation,and it is an important component of electric power demand-side management.states that demand-side management consists of three parts.The fir

53、st is strengthening the management of electricity consumption of the whole society.The second involves adopting reasonably and feasibly technical,economic,and management measures to optimize the allocation of power resources.And the third is implementing demand response,electricity conservation,elec

54、tric energy substitution,green electricity consumption,intelligent electricity consumption,and orderly electricity consumption,so as to promote secure operation and carbon reduction of the power system,improve efficiency,and reduce energy intensity.Green electricity consumption requires DSF to promo

55、te renewable energy consumption and achieve green transformation,while intelligent electricity consumption helps electricity users explore DSF through the integration of information and communication technology and power The third edition of Measures on Demand-Side Management of Electricity,publishe

56、d in September 2023,consumption technology.The potential of DSF is mainly applied through demand response.Demand response refers to the voluntary adjustment of electricity consumption behavior by users based on the needs of power system operation.Demand response can achieve peak shaving and valley f

57、illing,which improves the flexibility of the power system,ensures the security and stability of power system operation,and promotes the consumption of renewable energy power.Different from orderly electricity consumption,demand response involves an active participation in the adjustment of electrici

58、ty consumption behavior and is an important measure of demand-side management.The relation and distinction among demand-side management,DSF,and demand response are shown in Exhibit 1.45rmi.org/Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industria

59、l SectorIn 2015,the Central Committee of the Communist Party of China(CPC)and the State Council issued power companies actively carry out demand-side management and promote demand response.In 2016,the National Strategy for the Revolution in Energy Production and Consumption(20162030)Several Opinions

60、 on Deepening the Reform of the Power System.This document suggested that explicitly proposed implementing special actions for demand-side management of electricity in the industrial sector.In the same year,the Ministry of Industry and Information Technology issued The Special Action Plan for Demand

61、-Side Management of Electricity in the History and status quo of demand-side management in Chinamade efforts to promote demand response,energy conservation and intensity reduction,green power consumption,electricity security,and other demand-side manageSince the first edition of the Measures on Dema

62、nd-Side Management of Electricity in 2011,China has ment practices(see Exhibit 2).Exhibit 1 Definition and classification of demand-side management and demand response RMI Graphic.Source:National Development and Reform Commission(NDRC),RMIDemand responseElectricity conservationElectric energy substi

63、tutionGreen electricitySmart electricityDemand-sidemanagementVoluntarily adjust their electricity consumption behavior to the needs of the power systemImprove energy efficiency and achieve electricity savings in electricity consumptionPromote synergistic interaction between the supply and demand of

64、green electricity;improve the level of renewable energy consumptionSubstitute electricity for coal/oil in final consumption,and realize green energy substitution through market-oriented and intelligent approachesDemand response provides further energy cost savings for usersIncrease the electricity b

65、ase for demand-side flexibilityDemand-side flexibilityIncentive-based responseReal-time/dynamic tariffsPeak tariffTime-of-use tariffInterrupt-ible/curtail-able loadEmergency demandresponseCapacity MarketAncillary services,etc.Direct load controlDemand response promotes renewable energy consumptionAd

66、vanced technology enables Demand response resource developmentDirect release of demand-side flexibility768rmi.org/Price-based responseEnhance the intelligent level of electricity demand-side management through the integration of information technology and electricity consumption technologyUnlocking

67、Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorIndustrial Sector(20162020).It proposed building a platform for demand-side management of electricity and organizing demonstrations and promotions in key industries such as iron and steel,nonferr

68、ous metals,and chemicals.It suggested accomplishing this through the development of working guidelines and other key tasks to comprehensively improve the efficiency of energy consumption and demand response capacity in the industrial sector.In 2017,the NDRC along with six other ministries issued The

69、 Measures for Demand-Side Management of Electricity(revised version),which emphasized the necessity of summarizing and promoting the pilot experience of demand response.The publication also proposed an economic incentive mechanism to establish the coordination and interaction between demand response

70、 and renewable energy power consumption.of Electricity Ancillary ServicesIn 2021,the Center for the Promotion of Demand-Side Management of Electricity in the Industrial Sector took the lead in organizing the compilation of two standards.These were the General Specification for Demand-Side Management

71、 in Electricity Part 1:General Provisions and the General Administration of Grid-Connected Operation of Electricity Specification for Demand-Side Management in Electricity Part 2:Terminology.These standards were put forward by the National Technical Committee on Standardization of Electricity Demand

72、-Side Management.In the same year,the NEA revised and issued The Regulations on the.These publications suggestestablished the importance of industrial resources as flexibiliIn January 2022,the NDRC issued the Modern Energy System Planning in 14th Five-Year Periodelectricity ancillary services,enrich

73、ing new varieties of electricity ancillary services,and designing and the Measures for the Administration ed expanding new participants of new mechanisms for user cost allocation and market-based pricing formation.and ty providers.The document asked producers of large industrial loads to participate

74、 in the ancillary service market and encouraged producers of electrolytic aluminum,ferroalloys,polysilicon,and other electricity-price-sensitive,energy-intensive loads to advance their production procedures and provide flexibility in the form of interruptible and controllable loads.In September 2023

75、,NDRC and other ministries reissued the Measures on Demand-side Management of Electricity(2023 edition).This publication clearly asserted that by 2025 the target demand response capacity of each province will reach 3%to 5%of the peak load,and the provinces with an annual peak-valley load ratio excee

76、ding 40%will reach 5%or more.The publication stated that by 2030,the large-scale,real-time demand response capacity can be established and the sharing and integration of flexibility resources within the grid area can be realized,and that these solutions can be combined with the ancillary services ma

77、rket and electric energy market transactions.9101112131415rmi.org/Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorIndustry as potential source of DSFIndustrial loads,with a large load base and high demand response potential,are an im

78、portant source of DSF in the power system.Demand-side users of electricity mainly include industrial,commercial,and residential sectors.The scope of participation in demand response is more extensive and includes new demand-side resources such as microgrids,distributed smart grids,virtual power plan

79、ts,electric vehicle charging facilities,and user-side generation-gridload-storage integration.As the main driving force of economic development in China,the industrial sector makes up the highest proportion of electricity consumption among all users(see Exhibit 3).According to the China Statistical

80、Yearbook 2022,the added value from all industries in China exceeded 40 trillion renminbi,accounting for 33.2%of GDP.Electricity consumption by industries reached 5,700 TWh,accounting for 66%of total electricity consumption.This far exceeds that of commercial and residential users.Along with the cont

81、inuous development of the industrial economy and decarbonization of certain industries through electrification,the electricity consumption of the industrial sector will continue to increase.In addition,Chinas industrial load structure is rich with high flexibility potential and high operability.Acco

82、rding to the China Electric Power Research Institute(CEPRI),the research arm of State Grid,the top 15 contributors in terms of peak shaving and valley filling potential are all from the industrial sector,including cement,iron and steel,ferroalloys,silicon carbide,aluminum electrolysis,and magnesium

83、electrolysis.Electricity pricesensitive industries like cement,electrolysis,and iron and steel will have significant benefits from participation in demand response.In terms of organization and management,the communication cost for industrial users is relatively lower,and a limited number of high-qua

84、lity industrial demand response resources can be spotted through resource census and flexibility assessment.And typical grid operation situations,such as peak shaving,valley filling,and renewable energy consumption,can be achieved by carrying out targeted and regular industrial demand response busin

85、ess.161718Exhibit 2 Demand-side managementrelated policy roadmap RMI Graphic.Source:RMI analysis20112016202120222015201720212023NDRC et al,Measures on Demand Side Management of Electricity.NEA,General Demand-Side Management inSpecification for Electricity.NDRC,Modern Energy System Planning in 14th F

86、ive-Year period.Ministry of Industry and Information Technology,The Special Action Plan for Demand-Side Management of Electricity in the Industrial Sector(2016-2020).CPC and State Council,Several Opinions on Deepening the Reform of the Power System.NDRC et al,Measures on Demand-Side Management of El

87、ectricity(2023 edition).NDRC et al,The Measures for Demand Side Management of Electricity(revised version).NEA,The Regulations on the Administration of Grid-Connect-rmi.org ed Operation of Electricity and Measures for the Administration of Electricity Auxiliary Services./Unlocking Demand-Side Flexib

88、ility in China:Current Status and Potential of Demand Response in the Industrial SectorThe development of industrial DSF is of great significance to guarantee the stability and reliability of Chinas power system.Although China introduced demand-side management back in the 1990s,it mainly relied on t

89、he regulated and planned dispatch mode.At present,the priority rules of orderly electricity consumption are vague,and the power supply of industrial enterprises is often forced to cut off,causing plant shutdowns and economic losses.This shows the insufficiency of active demand response of industrial

90、 load in the power system.In the effort to achieve carbon neutrality and establish the new power system,one primary focus of power system construction has been to achieve the observability and controllability of the demand side and flexible participation in the power balancing.Currently,several prov

91、inces have pilot programs to promote demand response and virtual power plants.The development of information technology and power market reform have provided important technical support and a supportive market environment for a new round of developing industrial DSF.Exhibit 3 Share of electricity co

92、nsumption of various types of electricity users in ChinaThe electricity consumption distribution byvarious end-user sectorsTotal social electricity consumption（10 billion kWh）Primary industrySecondaryindustryTotal electricity consumptionTertiary industry ResidentialRMI Graphic.Source:China Statistic

93、al Yearbook 2022,RMI100%90%80%70%60%50%40%30%20%10%20182019202020212022 0%90,00080,00070,00060,00050,00040,00030,00020,00010,000014.1%15.8%69.0%14.2%16.4%68.3%14.6%16.1%68.2%14.1%17.1%67.5%15.5%17.2%66.0%From a technical perspective,with the implementation of the energy digitization strategy,industr

94、ial enterprises have gradually formed the unique advantage of sensing-communication-computing-control integration.This empowers industrial lean production and indirectly empowers energy saving,carbon reduction,and participation in power grid interaction.For example,the iron and steel industry has pr

95、oposed the goal of advanced automation,extreme flexibility,and extreme energy efficiency.With the promotion and integration of industrial internet and energy internet,the model and data-driven approach will fully consider the coupling of electric and nonelectric parameters in the production and oper

96、ation process.Through the quantification of the production,security,and economic constraints,it can achieve the rmi.org/Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorBased on this background,the RMI China DSF research will initiall

97、y focus on the industrial sector.This research will discuss 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 realized through the

98、 design of market mechanisms.Therefore,this report will summarize the development status;identify the main flexibility sources and potentials;and explore the technical,economic,and managerial challenges of industrial DSF development based on literature review and global practice,combined with expert

99、 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.decoupling of flexible loads in the actual production and master the precise temporal and spatial ch

100、aracteristics of load resources from temperature control,electrolysis,ball milling,and energy storage.The document also suggested that demand response entities be included in the scope of the capacity mechanism to establish and improve the demand response pricing mechanism in accordance with the ele

101、ctricity market.This means that industrial enterprises can not only reduce electricity costs through peak shaving,valley filling,and optimizing electricity consumption in the electric energy market,but also maintain the stable operation of the power system.This can be achieved through direct or indi

102、rect participation(e.g.,load aggregators,power retail companies,virtual power plant operators,integrated energy service providers,and other demand-side management service entities)in the ancillary service market,capacity mechanism,and demand From a market perspective,with the progress of power marke

103、t reform,demand-side resources have also been given a more important role in market participation.According to the Measures on Demand-side Management of Electricity(2023 edition),power grid enterprises should accelerate the construction of an available and controllable demand response resource base.

104、All types of demand response resources meeting the requirements of the electricity market access are eligible to participate in the market transactions of electric energy and ancillary services.response mechanism.Existing demand response incentives are mainly from financial special funds,interprovin

105、cial renewable energy trading spread surplus,seasonal peak tariffs,renewable energy consumption subsidies,spot market balancing funds,and ancillary service fees.Incentives are expected to be incorporated into the system operation costs of transmission and distribution tariffs in the future.Power mar

106、ket reform provides more economic incentives for industrial enterprises to develop and use DSF,and it mobilizes the initiatives of enterprises to participate in demand-side management.Purpose of the reportrmi.org/It is necessary to initially understand the characteristics of various types of loads i

107、n the industrial production process to further explore the load flexibility potential and make reasonable decisions about demand response.From the perspective of function,industrial load can be divided into productive loads and nonproductive loads(see Exhibit 4).Productive load refers to the electri

108、city consumed in the industrial production further divided into three categories:primary production load,auxiliary production load,and security load.The flexibility potential of productive loads depends on factors such as the electric load,the operation frequency,and the reserved load of equipment.N

109、onproductive load refers to electricity used for office lighting,office appliances,air conditioning,heating,etc.The electricity consumption of equipment and its load share can be quite different due to produprocess for driving equipment,electric heating,or electrochemical processes.Productive load c

110、an be ction process variations in different industries.In most cases,the productive load is the main source of flexibility in industry.Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial Sector2019Exhibit 4 Classification of industrial load by

111、 functionMain Sources and Potential of Industrial DSFClassification of industrial loadsRMI Graphic.Source:CEPRI,RMIIndustrialloadProductiveloadNonproductive loadPrimary production loadOffice lightingOffice appliancesAir conditioning/HeatingOther nonproductive loadSecurity loadAuxiliaryproduction loa

112、dThe main part of the industrial load,including the load of all kinds of equipment in the core process of industrial productionLoad for related equipment used to assist the main production equipment in its production activitiesElectricity load for equipment related to the security of production proc

113、essrmi.org/Based on the production process characteristics,industries can be classified into continuous production industries and discontinuous production industries,which correspond to differentiated demand response strategies respectively.Continuous production industry,also known as process indust

114、ry,refers to the process in which the materials flow uniformly and continuously according to a certain process sequence,change shape and performance in the flow,and finally form the product.Typical continuous production industry includes chemical,iron and steel,and aluminum production.Due to the con

115、tinuity of the production process,From the perspective of demand response strategies,industrial load can be classified into two categories:adjustable and non-adjustable loads.Nonflexible loads usually have high requirements for the reliability of power supply.Once the electricity consumption behavio

116、r is changed,it will have a significant impact on the production of users or the security of the power grid.Therefore,it is harder to alter nonflexible load.Flexible load includes interruptible load,shiftable load,and curtailable load(see Exhibit 5).Interruptible load means that industrial users can

117、 temporarily interrupt part of the load during peak hours or emergencies based on signed agreements.This type of load can typically provide minute-level flexibility and allow for a quick response to power system needs.Shiftable load means that industrial users have the flexibility to adjust the timi

118、ng of electricity consumption under a planned schedule,while the total energy consumption remains the same.Curtailable load refers to loads that can be used by industrial users to meet load shaving requirements of the power system.Both load shifting and load shaving require frequent switchgear contr

119、ols and are usually applicable to hourly and intraday time scales.Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial Sector21IndustrialloadExhibit 5 Classification of industrial load by regulation abilityApproaches for demand response in diff

120、erent industriesRMI Graphic.Source:CEPRI,RMIAdjustable loadInterruptibleloadShiftable loadCurtailable loadNon-adjustable loadIndustrial users can temporarily interrupt part of the load demand during peak hours or emergencies based on signed agreements.Industrial users have the flexibility to adjust

121、the timing of the electricity consumption under a planned schedule,while the total energy consumption remains the same.Industrial users can meet load reduction requirements of the power system through power reduction.Non-adjustable load will have a significant impact on production,or the security an

122、d stability of grid once adjusted.rmi.org/The major flexibility devices,temporal characteristics,and potential of participation in demand response vary significantly among different industries.Exhibit 6 illustrates relevant survey results in some typical industries.Under ideal conditions of policy,t

123、echnology,and market policy,the textile industry can achieve a maximum demand response level of around 35%.The share of flexible load is about 22%for the aluminum industry and about 20%for the iron and steel industry.The demand response potential of the cement,glass,and equipment manufacturing indus

124、tries is also above 20%.Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial Sector2223Summary of key industries DSFthose industries usually require a relatively stable load supply and a high level of security and reliability requirements.These

125、 industries are generally suitable for providing DSF through load shifting and load shedding.Discontinuous production industry,also known as discrete industry,refers to the production of individual products that can be counted by specific units instead of by weight or volume.This type of industry is

126、 characterized by breaking down the process of producing a single product into multiple units and assembling the final product at the end.These industries usually have high load flexibility,and thus the choice of demand response is more diverse.Typical discontinuous production industries include foo

127、d,machinery,and equipment manufacturing.Demand response can be realized by adjusting operating conditions such as production temperature,production speed,input current,or input voltage.A typical industry that adjusts load by temperature control is the iron and steel industry.In the steelmaking proce

128、ss,the load is adjusted by controlling the feedstock feeding time,the high-temperature refining time,and the speed of raising or lowering temperature of the steel refining furnace.A typical industrial demand response by adjusting the current and voltage is aluminum electrolysis.Enterprises can chang

129、e the real-time power consumption through an automatic control system and without interrupting the melting furnace.When there is insufficient or excessive electricity supply,melting furnaces in the electrolysis tanks will reduce or increase the input voltage,respectively,or they can generate large l

130、oad variation in a short time through the start and shutdown of different electrolysis tanks to provide flexibility.In addition to the DSF from production processes,some industries can also participate in demand response through distributed generation resources.Industrial users can reduce the demand

131、 from the grid by increasing power supply from captive power plants or backup batteries to provide system flexibility.For example,according to Global Energy Monitor,the installed capacity of operating captive coal power plants totals more than 130 gigawatts(GW)in China,accounting for 12%of all insta

132、lled capacity.Those plants are mainly concentrated in the industries that produce aluminum(76 GW),chemicals(26 GW),and iron and steel(10 GW).Captive power plants can be important sources capable of providing industrial DSF and thus should not be overlooked.During the industrial green transition proc

133、ess,the need to decarbonize the enterprises captive power plants is also urgent.In addition to retrofitting traditional coal power units for higher efficiency and lower emissions,investment in renewable energy and energy storage may be a long-term strategy.This will help enterprises to avoid the ris

134、k of price fluctuations in fossil fuels and to provide more zero-carbon flexibility sources for the power grid.rmi.org/Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial Sector*Recovery time is defined as the return to normal operation from a

135、 certain demand response state,not from an interrupted state of operation(h=hours).RMI Graphic.Source:State Grid Electric Power Research Institute,CEPRI,RMIExhibit 6 Major flexibility sources,demand response temporal parameters,and potential for key industriesIndustry segments2h(aluminum reduction c

136、ell)2h(aluminum reduction cell)smin 1h2h4h8h12h20%Per shift(steel rolling)Per shift(steel rolling)1030min(ele-ctric arc furnace)1030min(ele-ctric arc furnace)0.51h20%0.54h30%24%35%25%20%Demand response temporal parametersLead timeResponse durationRecovery time*Major flexibility sources/devicesDemand

137、 response potential(of total load)smin 1h2h4h8hsmin 1h2h4h8hsmin 1h2h4h8h12hsmin 1h2h4h8hsmin 1h2h4h8hsmin 1h2h4h8h0.52hsmin 1h2h4h8h0.52hsmin 1h2h4h8h0.53hsmin 1h2h4h8h0.53hsmin 1h2h4h8h0.52hsmin 1h2h4h8hsmin 1h2h4h8h0.54hsmin 1h2h4h8h0.51hsmin 1h2h4h8h0.51hsmin 1h2h4h8h12hsmin 1h2h4h8h12hsmin 1h2h

138、4h8h12hsmin 1h2h4h8h12hsmin 1h2h4h8h12hsmin 1h2h4h8hIron and steel(steelmaking)Electrolytic aluminumFerroalloyCementTextileGlassEquipment manufacturingAluminum reduction cell,captive power plantElectric arc furnace,rolling line,captive power plantSubmerged arc furnace,electric arc furnace,reduction

139、furnaceRotary kiln,vertical kilnLoom,texturing machineAir compres-sor,annealing kiln,glass melting kiln,cold end glass cutting machineMelting furnace,heat treatment furnace,high frequency furnacermi.org/Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the

140、 Industrial SectorThe potential for industrial DSF is of great importance in all countries around the world.Exhibit 7 shows the structure of final electricity consumption in several countries.Compared with China,which has the highest share of industrial electricity consumption(60%),Germanys industri

141、al electricity consumption share is 44%.To achieve the goal of 80%power generation from renewables by 2030,Germany has been devoted to exploring DSF resources.Statistics show that industrial demand response potential in Germany is up to 10 GW,accounting for about 13%of the peak load of the country.A

142、ccording to the US Environmental Protection Agency,the United States achieved peak shaving of 12 GW through demand response mechanisms in 2021,of which industrial users contributed 45.6%,although the proportion of industrial electricity consumption is only 19.0%.These cases show the superiority of e

143、xploring DSF for industrial users.24Exhibit 7 Structure of electricity consumption by sector in seven countries in 2020Global and Domestic Practice in Industrial DSFGlobal practice in industrial DSFDue to differences in industrial structure and technology levels,the key industries and corresponding

144、DSF potential vary among countries.Exhibit 8 shows the share of key industries in electricity final consumption.China,Germany,and Japan have higher shares of electricity consumption in iron and steel,which shows the urgent need to develop DSF in the iron and steel industry for these countries.RMI Gr

145、aphic.Source:International Energy Agency,RMIUnited StatesFranceUnited KingdomJapanIndustryTransportResidentialOtherCommercial and Public ServicesAustraliaGermanyChina0%10%20%30%40%50%60%70%80%90%100%19%0%39%34%8%26%2%39%31%2%30%2%38%28%1%35%2%29%34%0%36%3%28%32%1%44%2%26%26%1%60%3%17%7%14%rmi.org/Un

146、locking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorFor Australia,nonferrous metal manufacturing constitutes a higher share of electricity consumption,and the DSF potential of this industry may be more significant.Note that food manufactur

147、ing consumes a notable share in developed countries such as France,the UK,and the United States.Some developed countries in Europe have made significant progress in exploring and applying industrial DSF.Exhibit 9 shows the theoretical demand response potential and actual demand response level of ind

148、ustries in six European countries,respectively.Among them,the UK,the Netherlands,and Belgium have the highest proportion of industrial demand response potential,accounting for 17%of peak load,while that of other countries also exceeds 10%.In terms of implementation,the actual participation level of

149、demand response in the UK,France,and the Netherlands has been about 60%of the theoretical potential,while that in Germany and Spain is relatively lower,about 30%.25 RMI Graphic.Source:China Statistical Yearbook 2022,TenneT;US Energy Information Administratio;Japan Electricity Utilities Alliance;Aust

150、ralian Department of Climate Change,Energy,Environment and Water;RMIExhibit 8 Electricity consumption share of key industries in seven countries100%26%80%60%40%20%0%United StatesFranceUnited KingdomJapanAustraliaGermanyChinaFood,Beverage,and Tobacco ManufacturingMachineryPaper and PrintingChemical a

151、nd PetrochemicalNon-Ferrous Metal ManufacturingSteelOther7%12%24%10%14%7%38%3%3%17%10%14%14%30%7%11%15%7%11%19%40%17%16%11%2%13%2%39%5%7%23%11%3%12%20%7%13%18%4%27%11%10%58%6%7%7%6%6%rmi.org/Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial

152、SectorAt the technical level,the upgrading of certain industrial equipment and production processes in recent years has contributed to the practice of DSF.For example,aluminum electrolysis enterprises can upgrade diode rectifiers to thyristor rectifiers with a wider range of demand response levels.I

153、n the iron and steel industry,the blast furnacebasic oxygen furnace(BF-BOF)is being replaced by electric arc furnace secondary steelmaking,which brings a higher load and electricity consumption.The development of information technology such as big data,cloud computing,and industrial internet has ena

154、bled industries to implement load control more accurately and interact with the power grid in real time.At the level of market and environmental policy,several provinces have introduced targeted demand response policies and carried out corresponding practices.Exhibit 10 summarizes the demand respons

155、e participant types,target,programs,and pricing mechanisms of existing provincial demand response policies.Industries and major electricity users are included as major participants in demand response in all provinces,prompting industries to explore the potential of DSF through economic incentives.Fr

156、om the perspective of pricing mechanisms,each province has set different price ranges or compensation levels for various demand response programs to fully incentivize various types of users to participate in demand response.Development of industrial DSF in China is still at the embryonic stage,but r

157、ecent trends have shown advances in industrial production and information technologies.Improvements in demand responserelated mechanisms and supporting policies have paved the path for large-scale development of industrial DSF.26Domestic practice in industrial DSFExhibit 9 Theoretical potential and

158、actual participation level of demand response in six countries in 2020RMI Graphic.Source:European Network of Transmission System Operators,TenneT,RMI18%17%17%17%13%13%10%16%70%60%50%40%30%20%10%0%14%12%10%8%6%4%2%0%Share of Demand Response Potential in Peak LoadActual Participation in Demand Respons

159、e as a Share of Demand Response Potential(Right Axis）BelgiumSpainNetherlandsUnited KingdomGermanyFranceParticipating in demand response（Ratio of load to peak load）Actual participation in demand response（Proportion of volume to total potential）rmi.org/Unlocking Demand-Side Flexibility in China:Curren

160、t Status and Potential of Demand Response in the Industrial SectorHebeiGuizhouTianjinExhibit 10 Summary of existing demand response(DR)policies at provincial level in ChinaYunnanGansuSichuanElectricity Demand Response Program of Yunnan Province in 2023,2023.4 DR level 1MW:Industrial load,commercial

161、interrupt-ible load,building load,demand-side energy storage,electric vehicle charging facilities,distributed power generation,etc.Market-based/invitation-based/real-time-based offer;peak shaving;valley filling(1)Real-time=2.5 renminbi/kWh(2)Invitation-based:(a)Peak shaving=05 renminbi/kWhValley fil

162、ling=01 renminbi/kWhMarket clearing price through centralized biddingDay-ahead/intraday demand responseDay-ahead demand response Market clearing price through centralized biddingUp to 1.5 renminbi/kWhInvitation-based valley filling=1 renminbi/kWh When DR rate:(1)150%there is no subsidyDay-ahead/intr

163、aday/real-time demand responsePeak shaving;valley filling;invitation-based and real-time-basedInvitation-based valley filling DR level 1 MW and duration 1 h for electricity consumers,load aggregators,etc.No less than 1 GW5%of peak load5%of peak loadDR level 1 MW and duration 1 h for commercial and i

164、ndustrial users of 10 kilovolts(kV)and above,load aggregators,etc.Electricity users of 10 kV and above;DR level 5 MW and duration 2 h for load aggregatorsDR level 1 MW and duration 1 h for electricity users,load aggregators,etc.DR level 6 megawatt-hours(MWh)for load aggrega-tors,VPP;DR level 3 MWh f

165、or industrial users;DR level 0.6 MWh for nonindustrial usersGansu Electricity Demand Response Market Implementation Program(Trial),2023.4Implementing Rules for Electricity Demand Response during Spring Festival in Tianjin 2023,Province(Trial),Implementation Program for ElectricNotice of the Developm

166、ent and Reform Commission of Hebei Province on Further Improving the Operation of the Electricity Demand Response Market in the Southern Power Grid of Hebei ProvinceMarket-based Demand-Side Response of Electricity in Sichuan Province for th Year 2023,Implementation Plan for 2023.4,2023.4i-ty Demand

167、Response in Guizhou 2023.42023.1Shand-ongJiangsuNingxiaDR level 1 MW for commercial and industrial load,Implementing Rules for Electricity Demand Response in Jiangsu Province(Revised Exposure Draft),2022.10residential load,load aggregators,etc.Interruptible load;valley filling for renewable energy c

168、onsumption;contracted/real-time response(1)Interruptible load is 10 renminbi/kW for 2 h;12 renminbi/kW for 2 h to 4 h,15 renminbi/kW for 4 h(2)Valley filling=5 renminbi/kW for valley period and 8 renminbi/kW for flat period(1)Peak shaving=2 renminbi/kWh(2)Valley filling=0.35 renminbi/kWhPeak shaving

169、;valley fillingEmergency/economy interruptible load(1)Emergency interruptible load has capacity compensa-tion no more than 24 renminbi/kW/month based on lead time,energy(kWh)compensation based on DR volume,and spot price(2)Economy interruptible load is based on DR volume and spot priceDR level 1 MW

170、and duration 1 h for electricity users,load aggregators,etc.No more than 5%of peak load5%or more of peak loadDR level 1 MW for industrial users and load aggregators;DR level 0.4 MW for nonindustrial users and load aggregators;DR level 5 MW and duration 2 h,lead time 4 h for VPP,energy storage operat

171、orsPotential peak shaving is 6 GW;potential valley filling is more than 2 GW;actual peak shaving is 2 GW;actual valley Provincial Electricity Interruptible Load Demand Response Work Program for 2022Measures for the Management of Electricity Demand Response in the Ningxia Hui Autonomous Region,2022.6

172、,2022.6filling is more than 1 GWrmi.org/響應時長ProvincesPolicy documentsParticipant typesDemand response targetDemand response programsPricing mechanismRMI Graphic.Source:RMI analysisGuangxiHubeiZhejiangShaanxiGuangd-ongAnhuiHeavy industrial loads,commercial interruptible loads,customer-side energy sto

173、rage,electric Implementing Rules for Market-based Demand Response in Guangdong Province(for Trial Implementation),2022.4vehicle charging facilities,etc.Day-ahead demand response,interruptible load,competitive allocation of directly controlled flexible loadCentralized bidding price range:(1)Day-ahead

174、=703,500 renminbi/MWh(2)Interruptible load=705,000 renminbi/MWh(3)Directly controlled flexible load=040 renminbi/kW/month(1)Day-ahead/intraday peak shaving=8 renminbi/kWh;(2)Real-time peak shaving=12 renminbi/kWh(3)Valley filling=3 renminbi/kWhDay-ahead/intraday/real-time demand responseDay-ahead pe

175、ak shavingDay-ahead/intraday demand responseCentralized bidding price range=02.5 renminbi/kWhCentralized bidding price cap:Day-ahead=20 renminbi/kWIntraday=25 renminbi/kW 4 renminbi/kWh,only in peak season(1)Emergency peak shaving:20 renminbi/kW for duration 1h;30 renminbi/kW for duration 1h(2)Econo

176、my demand response price cleared by central-ized bidding with price cap:Peak shaving for nonresidential users is 10/15/20 renminbi/kW for duration 2 h,24 h,4 h;Peak shaving for residential users is 5 renminbi/kWh;Valley filling for nonresidential users is 58 renminbi/kW for valley/flat periodDR leve

177、l 1 MW for industrial users;DR level 0.2 MW for commercial users;DR level 5 MW for load aggregators5%or more of peak load5%or more of peak loadDR level 0.2 MW and duration 1 h for electricity users,DR level 1 MW and duration 1 h for load aggregatorsDR level 0.5 MW and duration 1 h for industrial use

178、rs;DR level 0.2 MW and duration 1 h for other usersElectricity users,load aggregators,etc.DR level 0.2 MW for electricity users,load aggregators,etc.Implementation Plan for Demand Response in Guangxi Electricity Marketization(Trial)Anhui Province Electricity Demand Response Implementation Program(fo

179、r Trial Implementation),2022.1,2021.12Implementation Program for ElectriciWork Program for Electricity Demand Response in Shaanxi Province in 2023Notice of Electricity Demand Response Efforts for 2021Province(Trial)-ty Demand Response in Hubei,2021.6,2021.6,2021.5Peak shaving=more than 200 GW(more t

180、han 5%of 3%5%of peak loadpeak load)Peak shaving:more than 4 GW(more than 10%of peak load)Peak shaving/valley filling;day-ahead/hour-ahead,minute-ahead/second-ahead/re-sponseEmergency/economy demand responseFujianChongq-ingDay-ahead/intraday demand responseMarket clearing price through centralized bi

181、dding(1)Peak shaving:industrial=10 renminbi/kWothers=15 renminbi/kW(2)Valley filling=1 renminbi/kW Electricity users of 10 kV and above,load aggregators with DR level 2.5 MW for energy storage resource users,etc.DR level 1 MW for industrial users;DR level 0.1 MW for nonindustrial users;DR level 5 MW

182、 for load aggregatorsDemand Response Implementation Program for Chongqing Power Grid in 2022(Trial)tation)Implementation Program for Electricity Demand Response in Fujian Province(for Trial Implemen-,2022.5,2022.45%of the peak loadInvitation-based peak shaving and valley fillingrmi.org/Unlocking Dem

183、and-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial Sector響應時長ProvincesPolicy documentsParticipant typesDemand response targetDemand response programsPricing mechanismThe most basic condition for the development of DSF in industry is to clarify flexible lo

184、ad potential,response speed,response duration,and recovery speed of its demand response in order to make optimal decisions.However,the degree of digitalization,automation,and intelligence of equipment is still insufficient,and the information interaction interfaces of equipment with networking capab

185、ility are not uniform yet.These technical deficiencies make it difficult to accurately assess the potential for industrial load flexibility.If smart devices are unable to capture key parameters that reflect production characteristics or if there are no matched quantitative analysis and optimization

186、models to utilize the key data the demand response potential will not be effectively identified.This restricts the application of flexibility resources and impedes the effective management of demand-side resources.For some continuous production enterprises,the load stability of the production proces

187、s is particularly important.If the duration and scope of the demand response cannot be accurately controlled,it may cause serious security risks.Conversely,for industries with complex production processes,demand response must meet the relevant production constraints,which are often manifested as non

188、electricity variables.It is necessary to consider other production features besides load and to link these characteristics with industrial demand response,thereby establishing a controllable feature model that meets the production requirements.In addition,the lack of technical standards is an import

189、ant hurdle.Many industries are unfamiliar with baseline loads to ensure production quality and security,and they lack an understanding of demand response.Given the differences in the processes and technologies of different industries,there is heterogeneity in their demand response capabilities and c

190、haracteristics.Unfortunately,this makes the experience of enterprises that have successfully participated in demand response nontransferable,further increasing the difficulty of scaling industrial demand response.Apart from technical challenges,it is clear that unsustainable business models and econ

191、omic incentives are also important reasons for the slow development of industrial DSF.From a cost perspective,DSF requires significant investments in technology and equipment,as well as additional operational costs.These costs are usually difficult to finance,making it challenging to promote demand

192、response efforts.In addition,frequent demand response may affect the performance and efficiency of major production equipment and result in additional energy losses and reduced equipment lifetimes.In terms of benefits,Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand

193、Response in the Industrial SectorChallenges of technological constraintsChallenges of economic and market regulationChallenges and Outlook of Industrial DSFChallenges of industrial DSFDespite the large resource potential of DSF in the industry sector,the development and application of DSF still face

194、 challenges such as technological constraints,economic and market regulation,and enterprise management.These challenges contribute to the current underdevelopment of industrial DSF resources.2728293031rmi.org/Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response

195、in the Industrial SectorThere are also enterprise management challenges for the implementation of industrial DSF.Senior leadership may be resistant to demand response practices due to a lack of knowledge about DSF.Conversely,demand response requires specific personnel with in-depth,specialized knowl

196、edge and imposes additional requirements on operating procedures,both of which can lead to employee resistance due to the need to learn new skills.These invisible barriers can make it difficult to develop industrial DSF.Challenges of enterprise managementthe electricity cost within certain industrie

197、s accounts for only a small percentage of total production costs.Relying only on load shifting and saving electricity costs will not bring significant improvements and may cause the risk of poor-quality products and project nondelivery.The current low cost-effectiveness of demand response also refle

198、cts the absence of market mechanisms.In terms of the electric energy market,only a few provinces such as Shanxi,Shandong,Guangdong,Gansu,and West Inner Mongolia have a spot market under long-period continuous trial operation.Industrial users of most provinces cannot directly observe the real-time ch

199、anges in electricity prices,and this reduces their willingness to develop DSF and optimize the electricity use behavior.Although more than 18 provinces(municipalities and autonomous regions)have implemented plans related to demand response,most of them just complement orderly electricity consumption

200、 during the peak summer period.The system needs of demand response and compensation standards are updated annually,which cannot provide stable investment signals for developing industrial DSF.There lacks a unified and comprehensive regulatory framework for DSF,and thus it is difficult for enterprise

201、s to implement the assessment and verification procedures on industrial DSF.Relevant demand response market mechanisms(trading varieties)still need to be refined and designed for different industrial load characteristics,response speed,response reliability,and other key parameters.Fortunately,severa

202、l provinces with faster power market reform progress have introduced market mechanisms for demand response and started regular operations.Since April 2022,Guangdong province has successively carried out the day-ahead invitation,interruptible load,competitive allocation of directly controlled flexibl

203、e load,and other market-based demand response trading varieties.Gansu and Fujian have also issued relevant documents for trial operation,which have provided more opportunities for the development of industrial DSF.Outlook for near-term efforts to promote industrial DSFFor China,it is important to he

204、lp industries increase their awareness of DSF,clarify the strategic significance and economic benefit potential of participating in demand response,and identify the flexibility potential with accelerating digitalization and intelligentization of industrial production.Therefore,based on the current s

205、tatus of DSF in China,this report aims to summarize the patterns of industrial load,explore the demand response potential,and further identify the main challenges.Subsequently,we will investigate the development potential,technological pathways,the demand response characteristics and their potential

206、 impacts,and the problems to be solved for major industries that are rich in DSF resources(e.g.,aluminum,iron,and steel).Meanwhile,we will also present cases of DSF development in various industries around the world and summarize the practical experience that can be used as reference.32rmi.org/Unloc

207、king Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorIn recent years,a series of policies have been launched at the national and provincial levels to promote demand-side management,which has created opportunities for the development of industr

208、ial DSF.The integration of information technology,artificial intelligence technology,and Internet of Things technology with traditional industrial process control and energy management systems has provided the necessary data and technological support for unlocking DSF.Along with power market deregul

209、ation,the market mechanisms of demand response will be gradually established and improved,which provides economic incentives for industrial participation in demand response.The lean production,energy savings,carbon reduction,and participation in grid interaction of industrial enterprises is a system

210、atic project.Consequently,the government should conduct top-level design jointly with multiple ministries to promote the high-quality development of the enterprise from a variety of dimensions in the post-industrial era.It is promising that industrial DSF will play a key role in guaranteeing the rel

211、iability and decarbonization of the power system in the near future.33rmi.org/Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial SectorState Council,Action Plan for Carbon Dioxide Peaking Before 2030,Peoples Republic of China,2021,https:/ et

212、al.,Blue Book of New Power System Development,Peoples Republic of China,2023,http:/ Overview of Emergence to 2019):9871007,2023,dition)A.Akrami,M.Doostizadeh,and F.Aminifar,Power System FlexibEvolution,Journal of Modern Power Systems and Clean Energy 7(https:/doi.org.10.1007/s40565-019-0527-4.NDRC,M

213、easures on Demand-side Management of Electricity(2023 e,Peoples Republic of China,https:/ et al.,Overview and Prospect of Demand-Side Management M Electric Power Information and Communication Technology 21(202echanism under Dual Carbon Goal,3):112,:/doi.org.10.16543/j.2095-641x.electric.power.ict.20

214、23.02.01.0NDRC,et al.,Measures on Demand-side Management of ElectricityChina,2010,(2011 edition).Peoples Republic of https:/ Committee of the Communist Party of China,State Council,Several Opinions on Deepening the Reform of the Power System.Peoples Republic of China,2015,90000f4e2000000066437c393.h

215、ttps:/ NDRC,NEA,National Strategy for the Revolution in Energy ProduPeoples Republic of China,2016,ction and Consumption(20162030),https:/ al.,The Measures for Demand-Side Management of ElectMinistry of Industry and Information Technology,The Special Action Plan for Demand-Side Management of Electri

216、city in the Industrial Sector(20162020),2016,https:/ of China,2017,icity(revised version),Peoples https:/ of China,2023,ystems(Draft for Comment)s Industrial Applicationsdition)Perioderviceseration of Electricityicity,Peoples Republic of China,2021,Peoples Republic NEA,General Specification for Dema

217、nd-Side Management in Electrhttps:/ Regulations on the Administration of Grid-Connected Opof China,2021,http:/ Republic of China,2021,Peoples Republic of China,2022,Peoples Republic of China,Frontiers in Energy NEA,Measures for the Administration of Electricity Ancillary Shttp:/ al.,Modern Energy Sy

218、stem Planning in 14th Five-Year https:/ on Demand-side Management of Electricity(2023 e 2023.S.M.S.Siddiquee et al.,Progress in Demand Response and ItResearch 9(2021),https:/doi.org/10.3389/fenrg.2021.673176.NEA,Guidance on Strengthening the Stabilization of New Power S,Peoples http:/ Bureau of Stat

219、istics,China Statistical Yearbook 2022.Peoples Republic of China,2022.X News,2020,China Power Sector Roundtable,Demand-Side Resource Potential Analysis Methods and Application https:/news.Case Study on the City of Huzhou in the Yangtze River Delta,BJ 2020,https:/ Demand-Side Flexibility in China:Cur

220、rent Status and Potential of Demand Response in the Industrial Sector Y.Cheng,Y.Rao,and S.Ding,Potential Analysis of Power Demand-Side Flexible Load in Industrial Field,Energy Engineering 43(2023):7278.Q.Zhang and I.E.Grossmann,Enterprise-Wide Optimization for Industrial Demand-Side Management:Funda

221、mentals,Advances,and Perspectives,Chemical Engineering Research and Design 116(2016):11431,https:/doi.org.10.16189/ki.nygc.2023.01.011.M.Shafie-Khah et al.,Comprehensive Review of the Recent Advances in Industrial and Commercial DR,IEEETransactionsonIndustrialInformatics15(2019):375771,https:/doi.or

222、g.10.1109/TII.2019.2909276.Y.Cheng,et al.,Potential Analysis of Power Demand-Side Flexible Load in Industrial Field,2023.German Energy Agency,Making Money with Smart Electricity Consumption,Deutsche Energie-Agen-turGmbH,2018,https:/www.dena.de/fileadmin/dena/Publikationen/PDFs/2019/181219_DSM_in_Ger

223、many_EN_final.pdf.TenneT and PwC,Unlocking Industrial Demand Side Response,2021,https:/netztransparenz.tennet.eu-/fileadmin/user_upload/Company/News/Dutch/2021/Unlocking_industrial_Demand_Side_Response.pdf.Y.Chen et al.,Electricity Demand Response Schemes in China:Pilot Study and Future Outlook,Ener

224、gy 224(2021):120042,https:/doi.org.10.1016/j.energy.2021.120042.C.-F.Lindberg et al.,Potential and Limitations for Industrial Demand Side Management,Energy Procedia 61(2014):41518,https:/doi.org.10.1016/j.egypro.2014.11.1138.M.H.Shoreh et al.,A Survey of Industrial Applications of Demand Response,El

225、ectric Power Systems Research 141(2016):3149,https:/doi.org.10.1016/j.epsr.2016.07.008.M.Song,L.Wang,and M.Zeng,Research on Demand Response Potential of Industrial Users Based onElectricity Consumption Behavior Characteristics,Electric Power Science and Engineering 39(2023):17.D.Ramin,S.Spinelli,and

226、 A.Brusaferri,Demand-Side Management via Optimal Production Scheduling in Power-Intensive Industries:The Case of Metal Casting Process,Applied Energy 225(2018):62236,https:/doi.org.10.1016/j.apenergy.2018.03.084.C.Leinauer et al.,Obstacles to Demand Response:Why Industrial Companies Do Not Adapt The

227、ir Power Consumption to Volatile Power Generation,Policy 165(2022):112876,https:/doi.org.10.1016/j.enpol.2022.112876.H.Golmohamadi,Demand-Side Management in the Industrial Sector:A Review of Heavy Industries,Renewable and Sustainable Energy Reviews 156(2022):111963,https:/doi.org.10.1016/j.rs-er.202

228、1.111963.H.Liu,Z.Ma,and J.Wang,Summary of Research on Analysis Technology of Demand Response Resource Adjustment Potential,Jilin Electric Power 50(2022):58.20212223242526272829303132rmi.org 33/RMI Innovation Center22830 Two Rivers Roadwww.rmi.orgBasalt,CO 81621Unless otherwise specified,all images i

229、n this report are from iStock.December 2023 RMI.All rights reserved.Rocky Mountain Institute and RMI are registered trademarks.Ziyi Liu,Jun Xie,Yujing Liu,Feixiang Gong et al.,Unlocking Demand-Side Flexibility in China:Current Status and Potential of Demand Response in the Industrial Sector,RMI,2023

230、,https:/rmi.org/insight/unnlocking-demand-side-flexibility-in-china/.RMI values cooperation and aims to accelerate energy transformation by sharing knowledge and insights.Therefore,we allow interested parties to reference,share,and reference our work through knowledge sharing CC BY SA 4.0 license.https:/creativecommons.org/licenses/by-sa/4.0/