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Germany's Smart Grid Governance System Offers Insights for China's Main-Distribution-Microgrid Collaborative Development

The “15th Five-Year Plan” period is a critical phase for the accelerated formation of a new power system and the strengthening of a next-generation power grid. With the rapid development of distributed new energy, new energy storage, electric vehicles, and flexible loads, distribution networks are transforming from traditional one-way power receiving systems into resource allocation platforms supporting diversified source-load integration and two-way power flow. The power exchange, information interaction, and control linkages between main grids, distribution networks, and microgrids are significantly strengthening.

In December 2025, the National Development and Reform Commission and the National Energy Administration issued the “Guiding Opinions on Promoting High-Quality Grid Development,” which clearly calls for accelerating the construction of a new main-distribution-microgrid collaborative power grid platform, promoting collaborative planning and construction and collaborative dispatch operation of backbone grids, distribution networks, and smart microgrids.

New Challenges in Main-Distribution-Microgrid Collaborative Operations

With the accelerated integration of distributed new energy and user-side energy storage, distribution networks have transformed from traditional one-way power receiving systems into active grids with bidirectional source-load interaction. Local operational changes are increasingly impacting the balance and safety of upper-level grids.

First, bidirectional power flow changes traditional operational boundaries. When distributed new energy generates concentrated output, reverse power flow, voltage limit violations, and equipment overloading may occur in local areas, requiring adjustments to planning, protection, and operational methods originally designed for one-way power flow.

Second, stochastic fluctuations of sources and loads amplify balancing pressures. New energy output, electric vehicle charging and discharging, and flexible load changes have strong uncertainties. Distribution-side net load deviations can rapidly transmit to the main grid, placing higher demands on day-ahead plans, intra-day adjustments, and real-time balancing.

Third, power electronics change fault and support characteristics. With a large number of inverter-based resources connected, fault current, reactive power voltage support, and restoration processes differ from traditional synchronous power supply conditions, requiring synchronized optimization of protection coordination, fault isolation, and restoration switching mechanisms.

Germany’s Main Practices in Smart Grid Governance

From Germany’s experience, the key to adapting to massive distributed resource integration is to clarify the operational responsibilities of each grid level, leverage distribution networks’ coordinating role in regional operational issues, organize dispersed resources into adjustable capacity through aggregation management and responsibility implementation, and ensure orderly implementation through transmission-distribution collaborative dispatch and information security systems.

Germany divides transmission and distribution operational responsibilities based on grid influence scope. Transmission system operators focus on system balancing, frequency stability, and backbone grid safety, while distribution system operators primarily handle regional power flow, voltage control, distributed resource integration, and local constraint management. EU electricity rules further require transmission and distribution operators to share information including grid structure, equipment maintenance, generation and load forecasts, real-time power flow and voltage, distributed resource operating status, and long-term grid development plans.

Faced with massive distributed resources, Germany does not require upper-level dispatch systems to manage each terminal directly. Instead, through virtual power plants, aggregators, and other market entities, distributed photovoltaics, energy storage, electric vehicles, and flexible loads are organized into predictable, reportable, and executable resource combinations. Additionally, EU and German electricity markets implement a balance responsibility mechanism, where market entities are in principle required to bear economic responsibility for energy deviations they cause, or delegate this responsibility to corresponding balance responsibility entities.

To address deviations between new energy output and load forecasts and the need for intra-day power flow adjustments, Germany implements Re-dispatch 2.0, incorporating power generation and storage facilities of 100 kilowatts and above into the adjustment scope. When latest forecasts or equipment status changes indicate potential line or transformer overloading, the grid operator that identifies the problem determines the affected area, direction, scale, and time period for adjustments.

Recommendations for Improving Main-Distribution-Microgrid Collaborative Development

Optimizing the collaborative development of main-distribution-microgrid networks requires the main grid to strengthen flexible configuration capabilities, supporting broad energy resource allocation and solidifying the physical foundation; distribution networks to strengthen resilience and interaction capabilities, supporting high-level new energy consumption and securing reliable power supply; and microgrids to strengthen elastic balancing capabilities, supporting efficient end-user energy combinations and enhancing end-level autonomous governance.

First, strengthen unified main-distribution-microgrid planning. Around grid-wide power and energy balance, safety stability boundaries, and new energy consumption needs, coordinate backbone grid frameworks, distribution network carrying capacity, smart microgrid layout, and flexible resource allocation, avoiding overall mismatch caused by each level pursuing local optimization independently.

Second, promote active regulation of distributed resources. Strengthen operational control capacity building for distributed new energy, energy storage, and adjustable loads, expand application scenarios including active power regulation, reactive voltage regulation, load regulation, and new energy consumption, and improve the distribution network’s ability to respond to source-load fluctuations.

Third, clarify regulatory responsibility boundaries among main grids, distribution networks, and microgrids. The main grid focuses on grid-wide balancing, backbone grid safety, and cross-regional resource coordination, forming regional exchange power, safety constraints, and regulation demands downward; the distribution network handles regional power flow, voltage, and distributed resource coordination; microgrids and low-voltage areas conduct local optimization within defined boundaries.

(Source: China Southern Power Grid Energy Development Research Institute Co., Ltd.; Original source: WeChat Official Account, China Energy Research Institute, Authors: Yu Mengqi, Cao Yi, Yao Peng)

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Source:China Energy Research Institute

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