As China’s power systems undergo a dual transition driven by high renewable penetration and market-oriented reforms, the trade-off between physical grid security and economic efficiency has escalated into a strict 'energy trilemma'—where system reliability, economic viability, and environmental sustainability (high renewable penetration) form inherently competing objectives. The inherent volatility of renewable energy continuously reduces system security margins, necessitating upgraded operational paradigms and enhanced system flexibility to maintain stability. Concurrently, conventional market mechanisms fail to accurately price and incentivize the
true systemic value of critical regulating resources, such as energy storage.

To address this issue, China has accelerated the development of its national electricity market, prioritizing market mechanism design and technological R&D for flexible regulating resources. Systemic efforts are currently focused on unlocking the regulating potential of distributed energy resources via virtual power plants (VPPs), alongside advancing proactive planning paradigms for large-scale interconnected grids with high penetrations of Inverter-Based Resources (IBR). Collectively, these initiatives are forging a security-economy synergistic framework, effectively monetizing systemic flexibility and ensuring a safe, long-term operational transition.

Bio

Haiwang Zhong is a tenured Associate Professor at the Department of Electrical Engineering, Tsinghua University, and an IEEE Senior Member. He serves as Director of the Center for Energy Strategy and Operations Research (EIII) and the Institute of Trading and Operations Research (Sichuan Energy Internet Research Institute). Supported by the NSFC Excellent Young Scientists Fund, his research focuses on power system optimal operation and electricity markets. His work in smart grid dispatch and renewable energy integration has been widely implemented in practical engineering. His professional leadership includes serving as Convenor of CIGRE C1.54, Secretary of CIGRE D2.53, Vice Chair of CIGRE NGN China, Deputy Secretary-General of IEEE PCCC, and a member of the IEEE PES Long-Range Planning Committee. He was awarded the ProSPER.Net Young Scientist Award, three Gold Medals at the Geneva Inventions Exhibition, and five provincial Science & Technology Awards.