On August 28, CATL signed a strategic cooperation framework agreement with Changzhou city of Jiangsu Province to jointly build a zero-carbon city. Under the agreement, the two parties will explore new pathways for zero-carbon urban development and advance the promotion and application of new energy across diverse urban scenarios. They will also further expand the full industrial ecosystem covering "generation, storage, transmission, consumption, and grid," jointly foster microgrid projects, and accelerate the formation of a microgrid industry cluster valued at over RMB 100 billion (about 14 billion U.S. dollars), positioning Changzhou as a model city for green and low-carbon microgrids.

A microgrid refers to a small-scale power system composed of distributed power sources, energy storage, energy conversion devices, loads, as well as monitoring and protection equipment. It enhances the reliability of power systems, reduces energy costs, and effectively addresses the challenges of secure access and efficient consumption of renewable energy at scale. At present, smart microgrids have moved beyond technical verification to large-scale deployment, becoming a key enabler of the urban energy transition.

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