Shanghai’s Development and Reform Commission, along with two other municipal departments, has jointly issued the Administrative Measures for Incentive Funds to Support Regulation Capacity in the City’s New Power System.
Original By NLS
Shanghai’s Development and Reform Commission, along with two other municipal departments, has jointly issued the Administrative Measures for Incentive Funds to Support Regulation Capacity in the City’s New Power System. The policy offers financial rewards to qualified virtual power plant (VPP) operators and new energy storage enterprises for projects connected to the grid between January 1, 2024, and December 31, 2028.
Grid flexibility is essential to the development of a modern power system. Virtual power plants—platforms that aggregate and coordinate distributed energy resources—are seen as a key enabler of this flexibility. Among the critical assets within VPPs are vehicle-to-grid (V2G) technologies and new forms of energy storage.
The new measures aim to accelerate the integration of VPP resources while promoting the scale-up of energy storage infrastructure within the city. By incentivizing smart charging infrastructure and storage deployment, Shanghai is addressing current capacity shortfalls and laying the groundwork for a more resilient and adaptable power system.
Under the policy, the following incentive standards will apply to projects that come online before September 1, 2025:
VPP platforms will receive RMB 50 per kilowatt of verified regulation capacity each year, with a maximum of RMB 1.5 million per platform annually. The incentive is valid for three consecutive years.
Smart V2G charging and discharging stations will be eligible for rewards based on evaluation results provided by grid operators (specific assessment criteria to be released separately). This incentive also runs for three years. In addition, privately owned non-smart chargers that are upgraded to smart models by the end of 2024 will qualify for a one-time incentive. However, upgrades completed in 2025 or later will not be eligible.