In 2012, China's electrochemical energy storage power plant put into operation only 0.2 million kWh of total energy, to 2018 this figure rose to 606,000 kWh, the new energy storage industry in the early stage of development was once slow growth.
In recent years, with the "double carbon" goal and the accelerated construction of new power systems, new energy storage into the development of the fast lane. China Electricity Council statistics show that as of the end of June 2023, the country's cumulative commissioning of 699 power stations, with a total power of 14.3 million kilowatts, the total energy 28.77 million kilowatt hours. And from the now announced 27 provinces to develop the "fourteen five" new energy storage installed capacity target, by 2025 the total size of the new energy storage or will be close to 80 million kilowatts.
Industry experts pointed out that, as an important support technology for the energy industry, the new energy storage industry, supported by favorable policies, its business model is maturing, the system cost is rapidly reduced, showing a surge in the development trend.
Favorable policies have been introduced intensively, the new energy storage system costs are rapidly declining
Recently, the National Development and Reform Commission and the National Energy Board issued the Notice on Further Accelerating the Construction of Electricity Spot Market (hereinafter referred to as the Notice). The Notice emphasizes the status of energy storage as an operating entity in the spot market and encourages new types of entities such as energy storage to participate in market transactions.
Including the Notice, according to incomplete statistics, in the first half of 2023, nearly 20 policies involving energy storage were issued at the national level, covering energy storage demonstration and application, standardized management, tariff reform, and diversified and intelligent applications.
Zhongguancun energy storage industry technology alliance deputy secretary-general Li Zhen introduction, as of July 2023, the country has issued more than 1,400 energy storage policy, of which January-July this year issued 321, equivalent to the total amount of the whole of last year, which is issued in Guangdong, Zhejiang, Shandong, Jiangsu and other places of the policy is the most concentrated. Many places around the high-quality development of the industry to develop supportive policies to accelerate the industrialization of energy storage project landing, and promote the construction of a strong chain to supplement the chain extension chain.
The rapid development of the energy storage industry to support the accelerated decline in system costs. According to Zhongguancun energy storage industry technology alliance incomplete statistics, 1-6 months of this year, a total of 338 tracked to the winning bid information, the average price of 1.33 yuan / watt-hour, compared with last year's annual average price level fell 14%, compared with January this year fell 25%.
In addition, PetroChina, Southern Power Grid, State Power Investment, China Huadian, Xinhua Hydropower, Guoneng Xinzhong and other successive completion of 15.6 million kilowatt-hours of energy storage core/battery system/energy storage system centralized purchasing bidding, the core offer range of 0.44 yuan / watt-hour ~ 0.68 yuan / watt-hour, energy storage system appeared to be less than 1 yuan / watt-hour offer (all lithium iron phosphate battery technology route), means that the power generation side to the Lithium-ion energy storage system from the power generation side to the power consumption side has the economy of large-scale promotion.
Due to the increased economy of electrochemical energy storage, the main body of investment in electrochemical energy storage presents a diversified development trend, in which the investment scale and growth rate of power generation group is the highest. Relevant data show that as of the end of 2022, the four types of investment subjects, namely, power generation central enterprises, social capital, power grid companies, and local energy state-owned enterprises, accounted for 47.24%, 41.10%, 9.54%, and 2.12% of the total amount of total energy put into operation, respectively.
Power-side energy storage development is particularly rapid, the role of compensation mechanism highlighted
According to the information released by the national electrochemical energy storage plant safety monitoring information platform, by the end of 2022, China's power-side, grid-side, user-side energy storage cumulative total energy in operation accounted for 48.4%, 38.72%, 12.88%, of which the power-side accounted for the highest. Common application scenarios of power-side energy storage include new energy distribution and storage, thermal power distribution and storage.
China Electricity Council statistics show that as of the end of 2022, the cumulative power supply side energy storage power station put into operation 263, installed 3.97 million kilowatts / 6.8 million kilowatt-hours, the cumulative total energy put into operation increased by 131.81% year-on-year. Among them, 207 new energy distribution and storage power stations have been put into operation, with an installed capacity of 2.82 million kilowatts/5.5 million kilowatt-hours, and the cumulative total energy put into operation has increased by 150.15% year-on-year. The cumulative total energy of new energy distribution and storage power stations in operation accounted for more than 80% of the proportion of the power side, mainly distributed in Shandong, Inner Mongolia, Tibet, Xinjiang, Qinghai and other provinces with high new energy installations.
Since 2021, 28 provinces across the country have issued new energy distribution and storage policies, of which 23 provinces specify the proportion of new energy configuration storage between 5%-30%, and the length of energy storage 1-4 hours. Zhejiang, Qinghai, Sichuan, Chongqing and other 11 provinces issued a new energy distribution and storage subsidy policy. Subsidies mainly include discharge subsidies, capacity subsidies, investment subsidies. Anhui, Guizhou, Henan and other 12 provinces issued a new energy distribution storage to participate in the auxiliary services market policy, the transaction varieties mainly include peak, frequency regulation, standby and so on.
At present, the development of new energy storage is mostly driven by policy, the revenue model is not fully mature; in addition, some places to take a "one-size-fits-all" type of configuration, without the introduction of supporting specific use and assessment methods, energy storage and new energy has not yet realized the coordinated and optimized operation. However, with the "further promotion of new energy storage to participate in the power market and scheduling the use of notice" requirements such as the gradual implementation of new energy with storage is still in a developmental trend.
In the thermal power distribution storage, the country has 12 provinces in the relevant policies involved in encouraging the development of thermal power distribution storage. As of the end of 2022, the cumulative thermal power distribution and storage power station put into operation 49, installed capacity of 770,000 kilowatts / 640,000 kilowatt-hours, the cumulative total energy put into operation increased by 23.2% year-on-year. Among them, Guangdong, Shandong, Jiangsu and Shanxi have higher thermal power distribution storage installations, accounting for 88.87% of the total energy.In 2022, the national thermal power distribution storage operated more adequately, with the annual operating hours reaching 2,933 hours.
At present, the policy support for thermal power distribution storage is mainly to encourage participation in the power auxiliary service market. The National Energy Board previously announced the "power auxiliary services management approach" "power grid operation management regulations" and other documents, for thermal power distribution storage intermodulation project established a compensation mechanism. Shandong, Henan, Gansu, Hubei and other 12 provinces issued policies on thermal power units to participate in the power auxiliary services market, to encourage the provision of peak shifting, frequency regulation and other power auxiliary services.
The reporter was informed that, although the thermal power distribution storage FM auxiliary service market space is small, but because the thermal power FM market compensation price is high, coupled with the development in the future, coal power still need to assume the role of safe and stable supply of electric power to cover the bottom of the security and the role of the main body of the system of flexible regulation, the thermal power distribution storage is still favored by the market.
Grid-side energy storage economy continues to improve user-side energy storage configuration demand is strong
Grid-side energy storage usually refers to the service power system operation, to assist the power scheduling agency to the grid to provide power auxiliary services, delay or alternative transmission and transformation facilities upgrading and reconstruction of the main purpose of the construction of the energy storage power plant. Common grid-side energy storage application scenarios include independent energy storage (including shared energy storage, etc.), alternative energy storage (including substations, emergency power supply, etc.), and so on.
CEC statistics show that by the end of 2022, the cumulative commissioning of grid-side energy storage power stations totaled 78, with an installed capacity of 2.44 million kilowatts/5.43 million kilowatt-hours, and the cumulative total energy commissioned increased by 165.87% year-on-year. Among them, the cumulative total energy put into operation of independent energy storage accounts for nearly 90% of the cumulative total energy put into operation of grid-side energy storage power stations.
In terms of independent energy storage, in recent years, about 30 provinces (autonomous regions and municipalities directly under the central government) have issued support policies related to independent energy storage, mainly focusing on investment and construction as well as power plant development and operation.
Shandong Province, which is at the forefront of independent energy storage development in the country, provides a model for the development of independent energy storage in China. In terms of economics, Shandong has established a profit model for medium- and long-term market energy storage, and through policy guidance has formed multiple revenue models such as independent energy storage capacity sharing and leasing, participation in power auxiliary services, peak and valley spread arbitrage, capacity compensation, etc., which provides a reference for the development of independent energy storage in other parts of the country.
In terms of alternative energy storage, as of the end of 2022, China's alternative energy storage power stations have cumulatively commissioned 14 power stations with an installed capacity of 330,000 kilowatts / 580,000 kilowatt-hours, with the cumulative total energy commissioned increasing by 239.64% year-on-year. The country has about 20 provinces have issued support policies, put forward in the key nodes, the end of the grid and remote areas, such as the layout of the new type of energy storage, give play to the advantages of energy storage emergency standby technology, to explore the grid alternative energy storage facilities cost benefits into the transmission and distribution tariffs recovery, etc., the economy of alternative energy storage continues to improve. Industry experts believe that, under a variety of incentives, with the rapid decline in the cost of energy storage systems, will inevitably lead to an increase in the grid alternative energy storage.
User-side energy storage is an energy storage facility built on or near the user's internal site. Among them, the cumulative total energy of industrial and commercial and standby power supply in operation accounted for 49.61% and 48.06%, respectively. Previously, Jiangsu, Zhejiang, Guangdong, Anhui and other provinces due to the peak and valley price difference is large, resulting in the current high commercial distribution storage installed capacity, accounting for 92.33% of the total energy of industrial and commercial distribution storage. According to the May 2023 power grid agent around the purchase price statistics, at present, China's maximum peak and valley price difference of more than 0.7 yuan / kWh provinces have 17. Zhongguancun energy storage industry technology alliance deputy secretary-general Li Zhen accordingly believes that more and more provinces of industrial and commercial energy storage has been economic.
Industry experts said that as China's power market reform continues to advance, taking into account the rising cost of high energy consumption electricity, as well as the tertiary industry, urban and rural residential users continue to increase the proportion of electricity consumption, the future peak and valley electricity price difference is expected to be further widened or maintained at a high level. In addition, the introduction of orderly power policies around the world, will stimulate the commercial and industrial users of electrochemical energy storage configuration needs, user-side energy storage has a broader development prospects.
New energy storage development is rapidly changing, how to ensure its healthy development? In the recently held 2023 Energy Green Low Carbon Technology Innovation Forum, the new power system simulation of the National Engineering Research Center, deputy director of the Chinese Academy of Electric Sciences, the power system carbon neutral research center director Yi Jun, in order to really play the role of energy storage in the new power system, energy storage in the development of the need to solve three problems, one is the precise division of the type of energy storage, do a good job of reasonable planning and layout. The second is to play the role of multiple energy storage and other power synergistic operation and scheduling support to enhance the security level of the system. Third, we need to study the value formation mechanism and policy mechanism to promote the sustainable development of diversified energy storage.
