China has officially implemented its first national standard covering the full lifecycle of virtual power plants, setting clear technical thresholds for the emerging sector.

The recommended national standard GB/T 47241-2026, effective September 1, was led by China Southern Power Grid Research Institute and co-drafted with 20 organizations including China Southern Power Grid, State Grid Corp of China, China Electric Power Research Institute, Tsinghua University and Southeast University.

The standard specifies requirements for general principles, overall framework, resources and grid integration, systems and terminals, information and communications, security protection, design acceptance and testing, operation and management, as well as benefit and evaluation.

It defines virtual power plants as an electricity operation model that aggregates distributed energy resources, adjustable loads and energy storage using modern information and communication technologies and integrated control systems, enabling new market entities to participate in power system optimization and electricity market trading.

The most notable element is the clear technical threshold. The standard requires virtual power plants to meet the following indicators: total aggregation capacity of no less than 10 MW, total regulation capacity of no less than 5 MW with individual unit regulation capacity of no less than 1 MW, regulation speed of no less than 3% of regulation capacity per minute, and sustained regulation duration of no less than one hour.

Industry insiders describe the 10 MW aggregation capacity threshold as the "entry ticket" for virtual power plants, marking the end of a phase dominated by concept-driven expansion and the formal start of standardized development.

Combined with GB/T 44260-2024 on resource allocation and assessment and GB/T 44241-2024 on management specifications, both implemented in February 2025, the sector now has a complete set of three national standards providing a common framework for investors, developers, operators and grid institutions.

The standard builds on an industry that has already reached considerable scale. By end-2025, approximately 470 virtual power plant projects were in commercial operation nationwide, with nearly 200 added during the year. The maximum grid-wide regulation capacity measured through testing reached 16.85 GW, up 70% year on year.

As of June 2026, total aggregation capacity exceeded 120 GW, accounting for 6.8% of the national maximum power load, surpassing the 5% demand-side response target set in the 14th "Five-Year Plan" modern energy system plan ahead of schedule. The number of projects exceeded 800, up 200% from 2023, with the share of projects participating in electricity market trading rising from 30% to 65%.

By region, the southern region has 105 operational projects aggregating over 20 GW of resources, with maximum adjustable capacity of 3 GW. Guangdong has registered 82 virtual power plant operators, and in February 2026, five generation-type virtual power plants in Shenzhen, Foshan and Zhongshan began submitting quantity and price bids in the spot market.

Shanghai's tested regulation capacity surpassed 1.5 GW, making it the first city in China to reach the million-kilowatt level. From January to July 2026, 49 virtual power plant projects were awarded through bidding nationwide with eight still under tender, both up sharply year on year, with individual project investment rising from the million-yuan level to the hundred-million-yuan level.

Policy support is advancing in parallel. In February 2026, the State Council issued implementation opinions on improving the national unified electricity market system, further promoting flexible participation of virtual power plants, smart microgrids and adjustable loads in the electricity market.

In August, the National Development and Reform Commission and the National Energy Administration issued the 15th "Five-Year Plan" for new power system construction, explicitly calling for vigorous development of virtual power plants, supporting qualified electricity retailers to develop virtual power plant businesses, and improving trading rules, technical standards, construction and operation management mechanisms, and grid connection and dispatch mechanisms.

The State Council's 15th "Five-Year Plan" carbon peak action plan also sets a target of 50 GW of maximum regulation capacity for virtual power plants nationwide by 2030, with power demand response capacity reaching over 5% of maximum power load. Additionally, the National Energy Administration will accelerate the issuance of guidelines for virtual power plant participation in electricity market trading.

In terms of market potential, the industry chain market space for virtual power plants in manufacturing and operations is estimated to reach 69.52 billion yuan in 2025 and 91.70 billion yuan by 2030. As of early 2026, 15 provinces had issued implementation rules for virtual power plant participation in electricity markets, with 12 provinces releasing supporting policies for medium- and long-term power trading. The first batch of 13 national pilot projects covers 10 cities, with policy coverage across all 31 provincial-level regions.

The implementation of the standard marks the industry's transition from fragmented exploration to scaled development under unified rules. It will raise industry entry barriers, squeezing out companies with weak technical capabilities that rely on concept-driven narratives, while reducing market trading coordination costs and clearing institutional obstacles for broader rollout of virtual power plant market trading nationwide.

Industry participants widely believe the policy window for virtual power plants is gradually opening, with the sector potentially on the verge of large-scale expansion as a complete system rapidly takes shape.