The role of demand-side flexibilities on low-carbon transition in power system: A case study of West Inner Mongolia, China

While the power system in West Inner Mongolia heavily relies on fossil fuels at present, it also has abundant renewable energy sources. The region assumes a significantly prominent status and fulfills a crucial role in China's energy security and power transition. This study concentrates on the low-carbon transition of the power system in West Inner Mongolia and examines pathways to accomplish the “carbon peak and neutrality” objectives. It emphasizes the significance of escalating electrification rates and the interplay between supply and demand in shaping future power systems. According to the future development direction of West Inner Mongolia and the load responsiveness characteristics, demand response (DR), Electric vehicles (EVs), and electric hydrogen production (EHP) are integrated into a planning model aimed at optimizing costs while ensuring operational safety. An analysis of the institutional framework and development trajectories for 2030 and 2060 is conducted, underscoring the pivotal role of demand-side flexibilities in the power system's transition. The research indicates that constructing a predominantly clean power supply system is essential for realizing the “carbon peak and neutrality” objectives, with energy storages and demand-side flexibilities playing crucial roles in regulating power surpluses and providing auxiliary services. Notably, EHP's extended energy storage capabilities effectively address seasonal imbalances in renewable energy output. The quantitative analysis indicates that the energy storage investment can be substantially reduced due to rapid advancements in DR and EHP, with a 5.3 % reduction when DR increases by 25 % and an 11.2 % reduction when EHP increases by 30 %. Consequently, strategically deploying demand-side flexibilities emerges as a promising strategy for enhancing the economic efficiency of the power system's low-carbon transition.