Demonstration of friendly interactive grid under the background of electricity market reform in China

The Friendly Interactive System of Supply and Demand (FISSD) is a large-scale demonstration project supported by Ministry of Science and Technology of the People's Republic of China, which provides an effective solution towards the problems in the development of future electric power systems, such as the increasing penetration of renewable energy sources (RES), the growing peak-valley difference of loads and the development of ultra-high-voltage (UHV) power grid. The FISSD project will take advantage of the advanced information and communication technologies (ICT) to achieve an effective interaction between customers and the power grid. Moreover, some innovative business models will be put forward and implemented in the demonstration area under the new round of electricity market reform in China. The objectives of the FISSD are to reduce the peak-valley difference of loads by 5.8% and the comprehensive energy consumption of residential customers by 5.5% at the end year of the project in 2020, compared with the start year 2016. The FISSD project will be demonstrated in two cities of Jiangsu Province, Suzhou and Changzhou, where the resident population is 2.38 million. Around 110,000 residential customers will be selected and equipped with smart devices to participate in the project. This paper provides an overview of the FISSD project and the launched pilot policies.