China’s virtual power plant (VPP) sector surged after regulators unveiled plans to accelerate next-generation power systems. Ankuai Zhi Electric jumped 13% while Xinlian Electronics and Jinzhi Technology hit daily upper limits, as the National Energy Administration’s new pilot program identified VPPs as critical infrastructure for grid modernization. The policy specifically targets seven application areas including renewable integration and demand response, with plans to develop localized projects integrating distributed energy resources.
The directive establishes concrete mechanisms for VPP participation in electricity markets, creating multiple revenue streams through energy trading, ancillary services and carbon-related offerings. This represents China’s most comprehensive VPP development plan to date, with pilot projects expected to demonstrate commercial viability within 12-18 months. The move comes as China seeks to optimize its growing renewable energy capacity while maintaining grid stability.
Analysts project the VPP market could grow at a 45% compound annual rate through 2030, potentially becoming a $12 billion industry. The sector’s rapid expansion is being driven by three key factors: hardware demand for control systems, software platforms for resource aggregation, and energy service providers developing new business models. With clear policy support and measurable capacity targets, VPP-related stocks are likely to remain in focus as China’s energy transition accelerates.
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