NDRC: distributed power generation joins grid

China is incorporating distributed power generation into its grid system. The move aims at balancing supply and demand.

The National Development and Reform Commission, says that power grids should support distributed power generation in grid access and capacity coordination.

The commission also encourages more private investment into distributed power generation and vows to provide subsidies to boost the industry. Currently, distributed power is mainly for residential use in China, but overcapacity often leads to power waste. Analysts say that the move would help break the monopoly of the country's grid system and lift the solar and wind power industry. Others say the regime still needs details on pricing and coordinating commercial and residential use.