The microgrid reduces energy costs for park companies by over 20%, driving demand for similar projects across China’s industrial parks. Zhang noted: “The microgrid expansion is both a result and a driver of China's energy transformation.” Microgrids, combining renewable sources like solar and wind with storage, operate independently or alongside the main grid, offering flexibility and sustainability.
China’s 14th Five-Year Plan emphasizes microgrid development, with over 300 projects operational or under construction in the industrial sector, according to the Ministry of Industry and Information Technology. Changzhou, Jiangsu, a key manufacturing and energy hub, has launched nearly 40 microgrids and aims for 300 by 2027. The National Energy Administration reported that in Q1 2025, new wind and solar capacity reached 74.33 million kilowatts, surpassing coal at 1.482 billion kilowatts, supporting China’s carbon peak by 2030 and neutrality by 2060 goals.
In cities like Suzhou, where land constraints limit centralized solar farms, distributed solar with smart microgrids meets high energy demands. Chen Hao, an associate professor at Renmin University of China, said: “Microgrids offer tremendous advantages in remote islands, deserts and areas where grid coverage is limited or electricity demand is high.” Suzhou’s microgrid regulates over 20,000 kilowatts daily, powering 5,000 households during peak demand.
Smart microgrids are also enhancing energy management. A Nanjing highway service area in Jiangsu features a microgrid with solar power, storage, and fast-charging stations, using AI to optimize energy allocation for electric vehicle charging. Tang Xisheng, a researcher at the Chinese Academy of Sciences, stated: “After years of development, microgrids are going beyond technological research and development to commercial applications.” He added: “We can expect to see their footprint expand across more industrial parks, residential communities, and rural regions in the future.”
