China's Microgrid Revolution: A Key Driver in the Country's Energy Transformation

As China embarks on its path to achieving carbon neutrality by 2060, the nation's microgrid revolution is gaining momentum. The action plan on accelerating the construction of new power systems encourages local governments to build smart microgrid projects catering to regional needs. With over 300 green microgrid projects operational or under construction in the industrial sector, China is steadily advancing toward its dual carbon goals. In Jiangsu Province, a manufacturing hub and major new energy base, the city of Changzhou has launched nearly 40 microgrid projects and plans to increase the number to 300 by the end of 2027.

Key Takeaways:

• A large digital screen at a new energy vehicle industrial park in Xuzhou displays real-time data on solar power generation and carbon dioxide reduction, generating nearly 7 million kilowatt-hours of electricity annually.
• Companies in the park can save over 20 percent on energy costs by using microgrid projects, which replace 2,800 tonnes of coal consumption and cut carbon emissions by 7,500 tonnes every year.
• China has invested substantially in microgrids, with over 300 green microgrid projects operational or under construction in the industrial sector, according to the Ministry of Industry and Information Technology.
• The city of Changzhou has launched nearly 40 microgrid projects and plans to increase the number to 300 by the end of 2027.
• The country's 14th five-year plan for modern energy systems underscores the importance of microgrid construction in achieving energy transformation.
• The microgrid expansion is both a result and a driver of China's energy transformation, made feasible by falling costs of wind and solar power, and enhancing grid stability.

Statistics:

• 52,000 square meters of photovoltaic panels support the energy storage system at the new energy vehicle industrial park in Xuzhou (Source: People's Republic of China -- State Council News).
• Companies in the park can save over 20 percent on energy costs by using microgrid projects (Source: People's Republic of China -- State Council News).
• 74.33 million kilowatts of newly installed wind and solar power capacity were added in the first quarter of 2025 (Source: National Energy Administration).
• 1.482 billion kilowatts of cumulative installed capacity of wind and solar power were surpassed coal-fired capacity for the first time in the first quarter of 2025 (Source: National Energy Administration).

Sources:

• People's Republic of China -- State Council News
• National Energy Administration
• Ministry of Industry and Information Technology