Policy Implication on Distributed Generation PV Trading in China

China is confronting with large amount of renewable energy curtailment, while the distributed renewable generation is in an explosive growth. To enhance the renewable energy utilization, China has embarked on reforms on distributed generation PV (DG PV) trading in the distributed energy market. This paper introduces the new reform that put forward three DG PV trading patterns -direct trading between DG PV and consumers, commissioned power grid sales and full generation purchased by the grid. We analyze the impact of DG PV trading reform on interests of stakeholders in the DG energy market. We argue that increasing integration of uncertain DG and efficient operation of DG energy market require higher technologies in storage, forecasting, smart monitoring for the grid to guarantee system reliability and security. Future roles of DG energy market are sketched out to integrate the market participants in a user-friendly and comprehensive way. This paper will be insightful to provide a framework for future Chinese DG energy market development and help it transit to an open retail electricity market in the future.