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Energy is the foundation and lifeblood of economic and social development. The evolution of energy systems is undergoing a critical transformation, marked by a new wave of energy revolution. At the heart of this revolution lies electricity, and the key to its transformation is the development of a new type of distribution network.
The major trend of the new energy revolution is driven by the rapid advancement and widespread adoption of next-generation energy and information technologies. Throughout history, each leap in human civilization has been accompanied by an energy revolution. The first industrial revolution was powered by coal and steam, while the second was driven by electricity, ushering in the age of industrial civilization. Now, the new energy revolution aims for clean energy production, gradually replacing fossil fuels with renewable sources. It emphasizes efficient and clean coal use, promotes non-coal energy, and builds a multi-source energy system that includes coal, oil, gas, nuclear, and renewables. Electrification is expanding across all sectors of energy consumption, propelling society into an era of intelligent civilization fueled by the internet and human ingenuity.
This energy revolution spans various aspects—economic and social structures, supply and demand dynamics, technological progress, and institutional reforms. However, two major trends stand out: the separation of the "pipeline" (physical) chain from the "content" (transaction) chain, and the shift from traditional single-energy supply to comprehensive energy services centered on clean energy.
The essence of separating pipeline and content lies in redefining the relationships within the energy system. Technological innovation enables this shift, while institutional reform ensures its sustainability. Historically, energy systems were vertically integrated, with large companies controlling both supply and usage. Monopolistic models dominated, but the new model focuses on market-driven reforms, allowing independent transmission and distribution networks to operate efficiently. This change allows energy providers to offer diverse services like load optimization, transaction bidding, and energy analysis, creating a more dynamic and user-focused energy landscape.
Comprehensive energy services represent a fundamental restructuring of the industry, driven by technological advances, green development, and the rise of new energy sources. These services are shifting from a centralized, long-chain model to a user-centered, interactive system. This transformation fosters a circular pattern of energy development, where multiple sources interact and adapt to changing demands. With the growth of IoT, AI, and big data, energy services are becoming more efficient, cost-effective, and competitive.
The core of the new energy revolution is the reform and innovation of the power system. Electricity can be derived from any primary energy source, and many end-use energies can be replaced by it. The future energy system must be built around a robust power grid. Countries that lead in power system transitions will gain a strategic advantage in the new energy era.
China's current power reforms align with these trends. First, establishing a power trading market separates the physical transmission from the transaction-based flow of electricity, promoting a competitive market environment. Second, the power system is transitioning toward a smart, integrated structure that combines horizontal energy complementarity with vertical optimization of generation, grid, load, storage, and usage.
At the center of this transformation is the construction of a new type of distribution network. Distribution networks are the most direct link between energy suppliers and consumers. In the context of the energy revolution, they are evolving beyond mere transmission and distribution to become platforms for smart transactions, integration of diverse energy sources, and comprehensive energy services.
Distribution networks are now the backbone of smart grids, enabling two-way communication, self-healing capabilities, and enhanced reliability. They support the integration of electric vehicles, renewable sources, and distributed energy systems. As the low-carbon economy grows, distribution networks play a vital role in reducing emissions and improving efficiency.
Moreover, they serve as comprehensive energy service platforms, connecting energy production, transmission, and consumption in an integrated manner. By optimizing multi-energy systems, they enhance energy security and provide diverse, user-centric solutions.
Pilot projects in China, such as incremental distribution network reforms and smart energy initiatives, highlight the growing importance of distribution networks. These efforts are not only transforming the energy sector but also driving innovation in the broader economy and daily life. As energy and information technologies converge, they will continue to reshape industries, lifestyles, and the way we interact with the world.