Objective Developing both centralized and distributed generation in parallel, with a focus on local and proximate utilization of renewable energy, is a key strategy for building China's new-type power system. However, the development of distributed renewables has lagged behind that of centralized projects, and its optimal development models and pathways require further exploration.

Method To address this, this paper investigated the local consumption of distributed renewable energy, based on a comprehensive analysis involving field visits to typical projects (including distributed generation, microgrids, incremental distribution networks, and "wheeling-over-the-wall" schemes), as well as corporate surveys, expert interviews, and literature review.

Result The study finds that while China possesses significant advantages for the local utilization of distributed renewables and has explored various integrated models (e.g., distributed power sources, microgrids, incremental distribution networks, wall-to-wall power sales, and source-network-load-storage), the promotion of self-generation and self-consumption still faces numerous practical barriers.

Conclusion After identifying the key challenges, this paper proposes targeted countermeasures from five dimensions: resource assessment, technical standards, market operation, power system reform, and policy mechanisms.