Through Sino-German Exchange towards a Better Market Environment for Distributed Energy in China

On 23 September, the GIZ and the Energy and Environmental Services Industry Alliance (EESIA) organized a roundtable with German and Chinese business representatives from the energy sector to discuss the development of distributed energy in China and to address challenges and opportunities for private sector engagement.

Since China’s pledge to achieve carbon peaking before 2030 and carbon neutrality by 2060, the country’s energy sector is looking towards a rapid transformation. Renewable energies are at the center of this transformation. Energy planners have to adapt to the special characteristics of renewable energy sources, and enable more flexible, distributed and smart energy systems. In this context the Chinese government has issued a series of policies supporting the development of distributed wind and solar power over the past few months.

The German government has strongly supported the development of distributed energy for years. Germany has not only accumulated rich policy experience and best practices in the field but has also promoted the development of advanced technologies and solutions.

Against this background, 15 Chinese and German companies came together to discuss the future developments, opportunities, challenges, and cooperation potentials from the perspective of key market players. Five German companies, including Siemens Energy, SBP Sonnen, Bosch Group, UHRIG Group and MWM, participated in the discussion. From the Chinese side, participants included, among others, China Energy Conservation and Environmental Protection Group (CECEP Consulting), China Huadian Corporation and State Grid Beijing.

The extensive exchange centered around the direction and potential of distributed energy in China. Taking the policy and industry trends into consideration, the discussion addressed the following specific issues:

  • China’s strategic shift within distributed energy from natural gas to renewable energies;
  • the development path of green hydrogen, hydrogen-ready combustion engines and SOFC fuel cells;
  • sector coupling and smart software for the integration of distributed energy and
  • the advantages and application scenarios of wastewater heat recovery.

In the discussions the participants expressed new ideas and visions for future market trends, as well as suggestions for a better Sino-German cooperation environment.

Distributed energy is one of the key topics on the agenda of the Sino-German Energy Partnership. In the framework of the project, the EP facilitates exchange and dialogue between China and Germany on distributed wind power, solar PV, heat pumps, biogas, flexibility in the energy system, and electricity markets. In the future, GIZ will continue to promote exchanges, build consensus between the two countries, promote in-depth cooperation in the energy industry, and support both countries to accelerate the energy transition and combat climate change.

For more information on business cooperation under the framework of the Sino-German Energy Partnership, please contact Mr. Tim Nees (tim.nees(at)