China Implements New Regulations to Address Grid Integration Challenges for Distributed Photovoltaic Power

31 Jul.,2025

The National Energy Administration (NEA) has recently revised and issued the Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation (referred to as the Management Measures).

 

Source: People's Daily

 

The National Energy Administration (NEA) has recently revised and issued the Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation (referred to as the Management Measures). These updated guidelines provide comprehensive requirements for managing the industry, building projects, connecting to the grid, and regulating operations. The regulations cover the definition and classification of distributed photovoltaic (PV) power generation and include management standards for each stage of a project’s lifecycle.

 

By the end of 2024, China’s distributed photovoltaic capacity is expected to reach 370 million kW, a 121-fold increase compared to 2013. As both distributed and centralized photovoltaic power generation continue to grow, distributed solar has become a significant driver in the country’s energy transition. However, the rapid expansion of distributed photovoltaics has led to growing challenges related to grid connection and power consumption, requiring urgent updates to regulatory approaches to ensure continued, balanced development.

 

The Management Measures stipulate that grid companies must collaborate with provincial energy authorities to conduct assessments and establish a quarterly capacity reporting and early-warning system for distribution networks. This will help ensure the rational distribution of distributed photovoltaic projects. Furthermore, new projects must meet the criteria of being observable, measurable, adjustable, and controllable, to enhance the grid’s capacity to absorb and regulate distributed photovoltaic power.

 

The Management Measures also encourage the adoption of innovative grid integration models. Distributed photovoltaic projects can now participate in scheduling mechanisms such as microgrids, source-grid-load-storage integration, and virtual power plants. For large commercial and industrial distributed PV projects, the regulations also allow for dedicated power lines to provide direct supply to users.

 

An official from the National Energy Administration explained that the goal of the Management Measures is to combine support for distributed photovoltaic growth with strong market regulation. The regulations aim to address challenges such as insufficient grid integration capacity, while also curbing market inefficiencies. The overall objective is to guide the industry toward sustainable development, ensuring the protection of stakeholders’ rights, especially those of rural communities. The official also emphasized that the fundamental difference between distributed photovoltaic systems and centralized power plants lies in their location on the user side, allowing for local, on-site energy consumption.