China has developed its first virtual power plant, which is expected to meet the country’s target for energy efficiency. The power plant, in order to strike a balance between the output and consumption of power, was put into operation in eastern China’s Jiangsu province on May 24.

The difference between physical power plants and virtual ones is the absence of physical construction and reduced carbon dioxide emissions in virtual plants. The virtual power plant enables electricity networks to reach electrical devices in each household, directly controlling the consumption of electricity, according to Luo Jianyu, director of the State Grid Jiangsu Electricity Company control center.

The system will be promoted across the country in the next phase of development. By 2020, the total power reserve of the system is expected to reach 100 million kilowatts, replacing 100 million-kilowatt coal-fired units. The system will consume over 100 million kilowatts of clean energy.