The 33rd China International Exhibition on Electric Power Equipment and Technology
Shanghai International Energy Storage Technology Application Expo / Hydrogen Energy Expo
New energy absorption (新能源消纳) is a Chinese power industry term referring to the grid's ability to accept and utilise electricity generated by renewable energy sources — primarily wind and solar — without curtailment (forced reduction of generation below available capacity). Curtailment occurs when renewable generation exceeds grid capacity to absorb it, due to transmission congestion, insufficient flexible balancing resources, or inflexible conventional generation that cannot be turned down quickly enough. China experienced significant renewable curtailment rates of 10–20% in wind-rich provinces including Gansu, Xinjiang, and Inner Mongolia in the 2015–2018 period, representing a major waste of clean energy investment. Improving new energy absorption has been a central policy priority, with curtailment rates falling significantly through UHV transmission expansion, energy storage deployment, demand response development, and market reforms.
5 Key Questions About New Energy Absorption (新能源消纳)
Renewable energy curtailment occurs when the power grid cannot absorb all renewable power generation. The main causes are: transmission congestion (insufficient capacity to move renewable energy from generation zones to load centres); inflexible conventional generation (coal and nuclear plants that cannot be turned down quickly or economically during periods of high renewable output); insufficient demand flexibility (loads that cannot shift to consume surplus renewable energy); inadequate energy storage (no buffer to absorb surplus generation for later use); and market design failures (electricity market rules that do not adequately value renewable energy or penalise curtailment).
China has reduced renewable curtailment through multiple measures: UHV transmission expansion moving renewable energy from resource-rich western regions to eastern load centres; mandatory minimum utilisation hours guaranteeing renewable generators a minimum level of grid access; energy storage co-location requirements ensuring new renewable projects include storage to buffer output variability; demand response development engaging flexible industrial loads to consume surplus renewable energy; electricity market reforms creating price signals that incentivise flexible operation; and improved renewable energy forecasting enabling better grid scheduling.
China's national average renewable curtailment rate has fallen significantly from peaks of 10–20% in 2016–2017 to below 5% nationally by 2022–2023, with some previously high-curtailment provinces achieving near-zero curtailment. However, curtailment remains a challenge in provinces with high renewable penetration and limited transmission capacity, including Gansu, Qinghai, and Inner Mongolia. As renewable capacity continues to grow rapidly, maintaining low curtailment rates will require continued investment in transmission, storage, and demand flexibility.
Energy storage directly improves new energy absorption by providing a buffer that absorbs surplus renewable generation during periods of high output and low demand, then releases it during periods of low generation or high demand. Co-located storage at renewable energy projects enables the combined system to provide a smoother, more controllable output profile, reducing the grid management challenges that lead to curtailment. Grid-scale storage at transmission substations can absorb renewable energy that would otherwise be curtailed due to transmission congestion, storing it locally and releasing it when congestion clears.
Electricity market reforms support new energy absorption by creating price signals that incentivise flexible operation and renewable energy consumption. Spot markets with real-time pricing create incentives for flexible loads to shift consumption to periods of high renewable generation (when prices are low) and for storage to charge during surplus periods. Ancillary service markets compensate flexible resources (storage, demand response, flexible generation) for providing the balancing services that enable higher renewable penetration. Carbon markets create additional economic pressure on fossil fuel generators to reduce output when renewable energy is available, improving absorption.
Key Takeaways
New energy absorption is a critical metric for China's energy transition — the ability to utilise all available renewable generation without curtailment is essential for achieving carbon neutrality goals efficiently. Improving absorption requires a systems approach combining transmission expansion, energy storage, demand flexibility, and market reform. EP Shanghai and ES Shanghai showcase the technologies and solutions that improve new energy absorption across the entire power system.
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