The 33rd China International Exhibition on Electric Power Equipment and Technology
Shanghai International Energy Storage Technology Application Expo / Hydrogen Energy Expo
What Is Source-Grid-Load-Storage Integration (源网荷储一体化)?
Source-Grid-Load-Storage Integration (源网荷储一体化, abbreviated SGLS) is a Chinese power system planning and operation concept that treats generation (source), transmission and distribution (grid), flexible demand (load), and energy storage as an integrated system to be co-optimised, rather than planning each element independently. This integrated approach enables: co-location of generation, storage, and load to minimise transmission requirements; coordinated dispatch of all four elements to maximise renewable utilisation and minimise curtailment; development of local energy communities that can operate semi-autonomously; and more efficient use of grid infrastructure by smoothing power flows. China's National Energy Administration has promoted SGLS as a key framework for new power system development, with pilot projects in multiple provinces demonstrating the concept at scale.
5 Key Questions About Source-Grid-Load-Storage Integration (源网荷储一体化)
The four elements are: Source (generation) — renewable energy (wind, solar, hydro) and conventional generation providing the energy supply; Grid (transmission and distribution) — the physical infrastructure connecting generation to load, including smart grid technology for real-time monitoring and control; Load (demand) — flexible industrial, commercial, and residential consumers that can adjust consumption in response to grid signals; and Storage — battery systems, pumped hydro, and other storage technologies that buffer supply-demand imbalances. SGLS optimises the interaction between all four elements simultaneously, using energy management systems to coordinate dispatch decisions across the entire system.
Traditional power system planning treats generation, transmission, and distribution as separate planning domains with different responsible entities (generation companies, grid companies, and distribution companies respectively). Demand is treated as a given forecast rather than a controllable variable. SGLS breaks down these silos, treating the entire system as an integrated optimisation problem. This enables solutions that would be invisible in traditional planning: for example, adding storage at a load centre may be more cost-effective than building new transmission to serve that load; or co-locating generation and load may eliminate the need for grid reinforcement entirely.
SGLS requires: advanced metering infrastructure (AMI) providing real-time demand visibility; demand response platforms enabling flexible load participation; energy storage systems providing the buffer between variable generation and demand; smart grid communication infrastructure connecting all system elements; and integrated energy management systems that can co-optimise dispatch across generation, storage, and flexible demand simultaneously. AI and machine learning are increasingly used to manage the complexity of co-optimising thousands of distributed resources in real time.
Notable SGLS pilot projects in China include: the Zhangbei multi-energy complementary demonstration project in Hebei, combining wind, solar, pumped hydro, and battery storage with smart grid management; the Qinghai clean energy demonstration zone, operating on 100% renewable energy for extended periods using SGLS principles; the Guangdong industrial park SGLS projects, integrating rooftop solar, battery storage, and industrial flexible loads; and multiple provincial-level new energy base projects in Inner Mongolia, Xinjiang, and Gansu combining large-scale wind and solar with co-located storage and flexible industrial loads.
China's new power system (新型电力系统) strategy, announced in 2021, aims to build a power system dominated by renewable energy while maintaining reliability and affordability. SGLS is a key operational framework for this new power system, enabling the high renewable penetrations required for carbon neutrality while managing the variability and uncertainty that renewable energy introduces. By treating generation, grid, load, and storage as an integrated system, SGLS maximises the utilisation of renewable energy, minimises curtailment, and reduces the need for fossil fuel backup generation — directly advancing China's carbon neutrality goals.
Key Takeaways
Source-Grid-Load-Storage Integration represents China's holistic approach to new power system design, treating generation, grid, flexible demand, and storage as an integrated optimisation problem rather than separate planning domains. This framework is central to China's strategy for achieving high renewable penetration while maintaining grid reliability. EP Shanghai and ES Shanghai showcase the technologies — from smart grid equipment to energy storage systems to demand response platforms — that enable SGLS implementation.
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