Features | 12.10.2026 | 3 min read
Optimizing the value of distributed energy resources while accelerating renewable energy integration and enhancing grid flexibility
As the share of renewable energy continues to rise and electricity demand keeps growing, power systems are facing an increasing need for flexibility resources. As China's largest electricity-consuming sector, industry accounts for approximately 64 percent of total electricity consumption, making commercial and industrial (C&I) loads a significant source of untapped flexibility. The effective development and utilization of these resources are becoming important approaches for enhancing grid flexibility and facilitating renewable energy integration.
At the same time, amid the transition toward a low-carbon economy, C&I enterprises also face the dual need to reduce costs, improve efficiency, and cut emissions. Participation in ancillary service markets is emerging as an important way for industrial parks and commercial users to optimize energy management and lower energy costs.
China Three Gorges Corporation (CTG), the world’s largest hydropower developer and operator, has built on its own strengths to launch an independent R&D project led by its directly affiliated unit, China Three Gorges Wuhan Science and Technology Innovation Park.
The initiative provides an innovative technical and operational model for enabling C&I flexibility resources to participate in electricity markets. By aggregating and dispatching distributed C&I resources, the virtual power plant (VPP) enables connected users to unlock the value of their assets through demand response, peak shaving, and frequency regulation services, creating new revenue streams while supporting more efficient participation of flexibility resources in power system operations.
To support the development of the VPP project, Hitachi Energy provided its VirtuPlan™ digital solution. The solution covers the entire process, from upfront assessment of C&I flexibility resources to VPP platform development and demonstration validation, forming the foundation for HMAX Energy, Hitachi’s AI-powered suite of service solutions delivered through trusted lifecycle partnerships to help customers plan, predict and prevent.
Leveraging an integrated and flexible combination of AI models, optimization strategies, and algorithms, VirtuPlan evaluates the flexibility potential of C&I resources, analyzes the suitability of resources and application scenarios, and identifies optimal deployment strategies based on practical operational needs. In addition, through advanced control software and communication technologies, the solution enables the development of the VPP platform and the validation of demonstration applications.
The implementation of this demonstration project can effectively unlock the flexibility potential of large-scale C&I resources and provide stable, high-quality balancing services to the electricity market. It can enhance renewables utilization and support the safe and reliable operation of regional power grids, providing strong support for the integration of high shares of renewable energy. By encouraging C&I users to participate in demand response and electricity market transactions, the project can promote the optimized allocation of flexibility resources, improve energy efficiency across society, increase the use of green electricity, and ultimately reduce carbon emissions.
As renewable energy, artificial intelligence, and digital transformation continue to advance, power systems are becoming increasingly complex, placing greater demands on the efficient utilization of resources that support flexibility.
“Through the collaboration on CTG’s virtual power plant project, Hitachi Energy has helped create a replicable and scalable ‘CTG model’ that opens new pathways for commercial and industrial users to participate in electricity markets while significantly enhancing power system flexibility and renewable energy integration. We are very proud to support China Three Gorges Corporation and will continue to work closely with customers and partners, leveraging our comprehensive consulting services and digital solutions to accelerate the development of a new power system and support China’s carbon peaking goals."
