However, there could be further positive effects of an accelerated transformation of the Chinese power system. China is already a global leader in clean technologies. Chinese solar PV manufacturers have played and continue to play a vital role in the rapid decline of solar PV costs. Moreover, the dynamic expansion of electric mobility in China, and the associated expansion of the EV value chain, has put downward pressure on electric batteries and ultimately EV prices.

China also has a very well-developed digital communications and software industry. So far, these industries have not been combined to their full potential. However, as the scenarios set out in this report demonstrate, an optimised system relying on enhanced digitalisation to unlock load shaping could integrate much larger amounts of clean energy. In turn, this stands to bring substantial economic and environmental benefits.

The accelerated adoption of these solutions in China could make them affordable for countries around the world – including today’s developing countries, which will see a rapid increase in energy demand over the coming years. In turn, China can use the path of power system transformation to make accelerated progress in restructuring its economy towards a pattern of growth in advanced high-quality industrial sectors.

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