Think Tank

Green electricity generation requires better utilization

2026-01-06   

To promote energy transformation and achieve the "dual carbon" goal, China has established the world's largest renewable energy system. But the deep test of energy transformation lies not only in generating green electricity, but also in using it well. The Central Economic Work Conference held at the end of 2025 proposed to expand the application of green electricity. Only by truly integrating green electricity into production and daily life can we realize the environmental value of green electricity and support the comprehensive green transformation of economic and social development. To understand the urgency of expanding the application of green electricity, we must first turn our attention to the world. The EU carbon border adjustment mechanism will be officially implemented from January 1, 2026. If Chinese companies cannot provide clear green production certificates for products such as steel, cement, and fertilizers, they may face high tariffs and even be blocked from the market. Green electricity is becoming a new passport for international trade, which is related to the global competitiveness of Chinese manufacturing. In the future, not using green electricity may mean "losing orders". Looking back at China, energy security and green low-carbon are the two major themes in energy transformation. For a long time, China's energy structure has been biased towards coal, with a high dependence on oil and gas exports. Holding the energy bowl firmly in one's own hands is crucial to the national economy, people's livelihood, and national security. China has abundant renewable energy resources, promoting green electricity consumption can effectively reduce dependence on imported fossil fuels. At the same time, energy is also the main battlefield for promoting the achievement of the "dual carbon" goal. Compared to fossil fuels, new energy sources such as wind and solar are cleaner, and replacing fossil fuels with them is the most direct way to reduce pollution and carbon emissions. Since green electricity is so important, why is its application still limited? Technically speaking, the biggest feature of wind and solar energy is that they rely on the weather to make a living. When the wind is strong, there is more electricity, but when there is no wind, the electricity stops; When the sun comes out, there is electricity, but on rainy days and nights, there is a lack of electricity. This intermittency and volatility pose significant challenges to the power grid. We often say 'abandoning wind and solar power' because electricity is generated but cannot be consumed by the power grid, and more green electricity cannot be sent from the western region to the central and eastern regions, which can only be wasted for nothing. At the same time, this characteristic also poses application challenges for power consuming enterprises that require stable power supply. In terms of economic accounting, although the cost of photovoltaic panels and wind turbines has significantly decreased, the system cost of green electricity is still high. In order to make unstable green electricity more efficient, we need to build massive energy storage facilities and flexibly transform coal-fired power, all of which require real investment. For many businesses in certain regions, using green electricity often means higher costs. Looking at the market mechanism, there is currently a phenomenon in the green electricity market - 'if you want to buy, you can't buy; if you want to sell, you can't sell'. What is green electricity? How can we prove that we are using green electricity? This involves green certificates and green electricity trading. There is still room for improvement in the current green power certification system, and the trading rules are relatively complex, with a certain distance to go in line with international standards. Some companies often face the embarrassing situation of "not knowing how to buy" and "not being able to explain what they bought" when using green electricity. To expand the application of green electricity, efforts should be made from technological innovation and market mechanisms. Vigorously developing energy storage technology to enable the storage of green electricity; Building a smart grid to facilitate the smooth flow of green electricity. Only by solving the technological bottleneck can green electricity truly become the main power source. Continuously building a unified national electricity market, making green electricity trading as convenient as buying groceries. At the same time, promote the green certificate system to ensure that every degree of green electricity is traceable. In addition, policies such as finance, taxation, and pricing can be implemented to provide green electricity users with a taste of sweetness and green electricity generators with hope, forming a win-win situation. Expanding the application of green electricity is a crucial step towards the energy revolution. The development of green electricity demonstrates China's strength as a major producer and builder of new energy. Next, we need to use the wisdom of energy system innovators and market rule designers to truly make green electricity "usable" and "well used". (New Society)

Edit:Luoyu Responsible editor:Jiajia

Source:ECONOMIC DAILY

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