In recent years, against the backdrop of China's push for energy structure transformation and the "dual carbon" goals, the "source-grid-load-storage" integrated model has emerged as a crucial pathway for building a new power system, accelerating nationwide implementation. Among these initiatives, the Hengshan Science City incremental power distribution pilot project, constructed and operated by Hengyang China Gas Energy Co., Ltd. (a subsidiary of CHINA GAS HOLD (00384)), stands out as a regional-level integrated energy service model due to its systematic layout and tangible results across all aspects of "source-grid-load-storage."

**Sole Power Distribution Entity Supports Regional Energy System Development** According to public records, Hengyang China Gas is the exclusive power distribution and retail operator within the 26.5-square-kilometer incremental power distribution pilot zone of Hengshan Science City, holding legal rights to electricity and centralized heating concessions in the area. Its responsibilities span investment, construction, and operation of incremental power distribution networks, extending to comprehensive energy services, including planning, construction, and management of multi-energy complementary systems such as photovoltaics, energy storage, charging facilities, and gas-distributed energy.

Covering the entire Hengshan Science City, the company operates one 110kV Mingyan substation with a main transformer capacity of 63MVA, supported by 5.74 km of 110kV overhead lines and 38 transmission towers. Additionally, it manages nine 10kV power transmission lines with a total distribution transformer capacity of 99,450kVA, including 91 public transformers and 69 dedicated transformers, ensuring stable and secure power supply for diverse loads in the region.

Currently, the area serves nearly 8,000 registered users, including large industrial, general commercial, agricultural, and residential customers, with close to 200 enterprises operating within the zone. Annual power supply exceeds 40 million kWh, reflecting the growing diversity and demand for electricity, which places higher requirements on the grid's regulation and response capabilities.

Last year, the grid-side energy storage project at the Mingyan 110kV substation was successfully connected to the grid, marking a critical breakthrough in energy storage. The system operates on a "two-charge, two-discharge" strategy, achieving a comprehensive efficiency of approximately 90% and over 600 annual cycles. It is estimated to save CNY 3.3 million in electricity costs annually. By charging during off-peak hours and discharging during peak periods, the system effectively balances power demand, alleviating grid pressure while enhancing stability and reliability. It also supports auxiliary services like frequency and voltage regulation, improving local renewable energy consumption and boosting grid flexibility.

**Multi-Dimensional Benefits of the Project** From an operational perspective, the "source-grid-load-storage" model significantly enhances the grid's ability to accommodate intermittent power sources like distributed photovoltaics. By coordinating localized load adjustments with energy storage responses, it mitigates voltage fluctuations and overload risks caused by renewable energy integration, improving grid resilience.

Economically, optimized energy scheduling strategies enable balanced load management, avoiding peak tariff costs and effectively controlling overall electricity expenses.

In terms of energy security, the model strengthens system robustness and emergency response capabilities, ensuring uninterrupted power supply for critical loads during disruptions. The integration of diverse energy sources reduces reliance on a single energy type, enhancing supply diversity and autonomy.

Furthermore, the project leverages digital and information technologies to advance smart grid development, improving automation and intelligent management.

Environmentally, large-scale adoption of photovoltaic power generation and energy storage collaboration significantly reduces fossil fuel consumption and greenhouse gas emissions, supporting the park's green and low-carbon development.

Overall, Hengyang China Gas's "source-grid-load-storage" project in Hengshan Science City exemplifies the integration of incremental power distribution reform with comprehensive energy services. Based on concession rights and market demand, the project combines technological innovation and system integration to achieve synergistic economic, environmental, and social benefits. This case serves as a valuable reference for similar energy system developments in industrial parks and new urban zones, contributing practical insights to China's efforts in building a clean, low-carbon, safe, and efficient modern energy system.

Looking ahead, as photovoltaic and energy storage costs decline further and policy support strengthens, such integrated models are expected to expand across more regions.