China issues guidelines for industrial green microgrids expansion

Renewable power projects at industrial sites must ensure that 60% of their electricity is consumed locally.

China has issued new guidelines to improve green microgrids in the industrial sector, as the segment’s 300 microgrid projects remain in the pilot phase and face barriers in decarbonisation. 

In the new guidelines, newly built renewable power projects at industrial enterprises and parks must ensure that at least 60% of their electricity is consumed locally or in nearby areas on an annual basis, the country’s state council said.

The development of advanced equipment and technologies must also be prioritised, including high-efficiency water electrolysis for hydrogen production, fuel cell power generation facilities, and integrated wind-solar hydrogen production systems, it added.

China’s state council jointly issued the guidelines with five government departments, including the Ministry of Industry and Information Technology (MIIT).

The council said that the country has over 300 microgrid projects in operation nationwide, but the industrial sector remains in the pilot phase and faces challenges, including the lack of unified technical standards, incomplete market-based mechanisms, and insufficient coordination with the main power grid.

Industrial green microgrids are integrated energy systems that supply clean power to industrial users, combining solar and wind power, heat pumps, energy storage solutions, and intelligent energy management for decarbonisation.

An MIIT official said that the ministry will provide solid backing for the green and low-carbon transformation of major industrial sectors, the council said.