Industrial restructuring and diversification of energy demand are accelerating in the People’s Republic of China (hereafter, “China”). In addition, driven by resource and environmental constraints, as well as pressure to reduce carbon emissions, China’s primary energy consumption structure is expected to shift in coming decades. This transition is an opportunity for the increased adoption of distributed energy systems (DES). Against this background, it is timely to take stock of what distributed energy means in the 21st century, where its application in China stands today and what its future prospects are. This report aims to provide a step in this direction; it presents a vision for what distributed energy systems may look like: integrated solutions that intelligently combine clean-generation options with energy efficiency and solutions that focus on customer’s needs for energy services. The report highlights numerous examples from China and around the world, illustrating promising solutions that are already emerging in practice.