More Flexibility Is Key for China’s Power System Amid Rapid Renewables Rollout, IEA Says

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IEA's head of Renewable Integration and Secure Electricity unit Pablo Hevia-Koch and analyst Camille Paillard present the agency's report, "Meeting Power System Flexibility Needs in China by 2030," in Beijing on Nov. 28. Photo: Institute of Energy, Peking University

As China continues to rapidly deploy wind and solar energy, reforming its power markets to introduce more short-term flexibility will be vital to balancing supply and demand in the country’s power system, according to a new International Energy Agency (IEA) report.

“China is deploying renewable energy at a speed and scale that has no comparison around the world. That means that it would need to develop system flexibility at the same speed and scale,” Pablo Hevia-Koch, head of the IEA’s Renewable Integration and Secure Electricity unit, said in a Caixin interview in Beijing in late November.

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China has surpassed its goal in wind and solar capacity, reaching over 1,200 GW ahead of schedule and aiming for 4,232 GW by 2030, needing more short-term grid flexibility due to variable renewables.
Short-term flexibility is crucial to balance generation and consumption, with needs expected to triple by 2030; improvements are needed in market design and dispatch practices.
Expanding spot markets and enhancing system efficiency could reduce costs by approximately 35%, with a unified national power market planned by 2029.

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Who’s Who

International Energy Agency: The International Energy Agency (IEA) is an organization focused on ensuring reliable, affordable, and sustainable energy. It provides data, analysis, and policy recommendations, especially concerning clean energy transitions. In this context, the IEA highlights China's rapid deployment of renewable energy and stresses the need for short-term flexibility in power markets to balance supply and demand effectively.

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What Happened When

July 2024：: China surpassed 1,200 gigawatts (GW) of wind and solar capacity, six years ahead of its target.

November 2024：: An IEA report published projecting short-term flexibility needs in China will triple between 2022 and 2030, and highlighting challenges in the grid's balance due to rapid renewable energy growth.