WORKINGPAPER|September2020|1WORKINGPAPERWorkingPaperscontainpreliminaryresearch,analysis,findings,andrecommendations.Theyarecirculatedtostimulatetimelydiscussionandcriticalfeedbackandtoinfluenceongoingdebateonemergingissues.Mostworkingpapersareeventuallypublishedinanotherformandtheircontentmayberevised.SuggestedCitation:Martinot,Eric,MiaoHong,HuRunqing,ZhangMofan,andYuanMin.2020.“DistributedEnergyinChina:ReviewandPerspective2020–2025.”WorkingPaper.WorldResourcesInstitute,Beijing.Availableonlineathttps://wri.org.cn/working_paper/2020/10/DISTRIBUTED_ENERGY_IN_CHINA_REVIEW_AND_PERSPECTIVE_2020_2025_CN.ERICMARTINOT,MIAOHONG,HURUNQING,ZHANGMOFAN,YUANMINDISTRIBUTEDENERGYINCHINA:REVIEWANDPERSPECTIVE2020–2025EXECUTIVESUMMARYHighlights▪DistributedenergyisoneofthecornerstonesofChina’senergytransition.YetdistributedenergyisstilldrasticallyunderdevelopedrelativetoitspotentialinChina.▪InChina,overthepast15years,policiesfordistrib-utedenergyhavegreatlyevolvedandexpanded.Dur-ingtheperiod2020–25,currentpolicysupportswillbephasedout,anddistributedenergywillgravitatetowardmarket-orientedandcompetitivemodels.Newpolicieswillindirectlysupportdistributedenergy,removebarriers,andprovideafavorableenvironmentfordistributedenergytocontinuetogrow.▪Avarietyofmarketdrivershaveemergedinrecentyears,beyondcost-subsidypolicies.Veryspecificdis-tributedenergy“usecases”arebenefitingfromthesemarketdrivers.▪Usecasesfordistributedenergywillcontinuetogrowforintegratedmicrogrids,energystorage,electricvehiclecharginginfrastructure,andlargervolumesofsmall-scaleprojectsforindustrialandcommercialendusers.▪Insupportingtheaccelerationandscale-upofdistrib-utedenergy,avarietyofrecommendedactionsareavailabletogovernmentagencies,industry,projectdevelopersandfinanciers,foundationsandotherpub-licfunders,andresearchinstitutions.CONTENTSExecutiveSummary..........................................................1Introduction.....................................................................3PolicyHistory...