According to the incomplete statistics of the global Energy Storage project database of ZHONGguancun energy storage Industry Technology Alliance (CNESA), by the end of 2021, the cumulative installed capacity of new energy storage projects in China is 5.7GW, and the newly installed capacity is 2.4GW, with a year-on-year growth of 54%, among which the newly installed capacity on the power side is up to 1GW. The second is the new installed capacity of the power grid reached 854MW. During the 14th Five-year Period, the National Energy Administration put forward a development goal of no less than 30GW in the Guiding Opinions on Promoting the Development of New Energy Storage. If this goal is realized, the new energy storage will increase by at least 10 times. The market is growing at a high speed, but the road of development of new energy storage is still bumpy. Whether the energy storage power station can be reasonably invoked, whether it can obtain reasonable income through the market, and whether the income can be guaranteed stably have been the main problems that have troubled the development of new energy storage.
The market urgently needs to straighten out the policy mechanism, price mechanism and scheduling operation mechanism for new energy storage to participate in market operation. In this context, the release of "Notice on Further Promoting the Participation of New energy storage in the power market and dispatching Application" can be said to be a timely rain for the energy storage market and solve the long-expected problem of the industry. The following is our interpretation of the key content of the Notice.
I. Adhere to the principle of market-oriented development, define the independent energy storage identity for the first time. In the general requirements of "notice" is put forward to build a perfect adaptation of energy storage in market mechanism, encourage new energy storage choose to participate in power market, adhere to market-oriented way form the price, continue to improve the operating mechanism of scheduling giving full play to the advantages of energy storage technology, enhance the level of energy storage in general use, safeguard energy storage reasonable income, promote the healthy development of the industry. Firmly clarified the fundamental principle of market-oriented development.
Notice at the same time, the first official definition for independent storage: measurement, control and other technical conditions, independently access can be power grid dispatching automation system monitoring and scheduling, comply with relevant standards and in compliance with the relevant aspects of electricity market operation mechanism and so on, has the legal personality of the new type of energy storage project, to be converted into independent energy storage, as an independent subject to participate in the electricity market. Throughout the development of domestic and foreign energy storage market in the past two years, independent energy storage is a development mode that attracts more attention. The United States, Australia, such as the UK are the ground level of implementation of a batch of hundred megawatts of energy storage projects independently, in our country in shandong, hunan, jiangsu, hebei, shanxi, zhejiang, anhui and other places are in the layout of large-scale energy storage projects independently, covers the lithium ion battery technology category, compressed air energy storage, flow batteries, flywheel energy storage, and other technical route. This year, shandong independent energy storage demonstration project has entered the spot market operation, a new stage of China's new energy storage development. Compared with the previous energy storage projects jointly operated by the power generation side, new energy and thermal power plants and the user-side energy storage projects, independent energy storage has the natural conditions to participate in the market as an independent subject in terms of technology and form. In terms of function, independent energy storage can provide flexibility for the system and safety support for power grid operation more efficiently. In terms of income, independent energy storage has the ability to obtain multiple benefits by participating in transactions between different varieties in multiple markets. Therefore, the notice clearly defines the identity of independent energy storage, which is an important basis for promoting the participation of new energy storage in the market.
Promote the synergistic development of renewable energy and energy storage by encouraging participation in the market. Since 2019, a total of 22 provinces and cities across The country have introduced policies on the allocation of renewable energy storage. Currently, the number of new energy storage projects planned by provinces across the country has reached 42GW. The reason behind the policy of energy storage allocation of renewable energy actively promoted by provinces reflects that under the background of the rapid increase of the penetration rate of renewable energy, the system regulation pressure of power grid keeps increasing and the demand for flexible resources keeps increasing, so new regulation resources need to be built to relieve the pressure. Strong, however, with the rapid development of the energy storage policy in creating new energy storage, at the same time, is accompanied by a large number of new energy storage because there is no reasonable planning, reasonable calls in the idle state, and once appear the phenomenon of "bad money drive out good money", and behind it is the core issue of renewable energy configuration energy storage could not participate in the market, the lack of reasonable cost dredge the channel, The role and value of energy storage is difficult to play and gain benefits. According to the Notice, new energy storage projects existing in the form of allocation are encouraged to participate in the power market in accordance with existing relevant rules by combining with other types of power supply as a whole, provided that the transformation of metering and control systems within the station is completed and relevant technical requirements are met. Around the advancement of electric power market construction, so as to operations PeiJian storage facilities, the new energy will be able to improve the operations of the new energy for network performance to reduce examination, and can be jointly participate in the spot market, ancillary services market, mid-term and long-term market, improve operations in the new energy power, and can provide new energy terminal capacity value, in order to obtain a higher price.
In addition, it is also mentioned in the Notice that with the gradual maturity of market construction, it is encouraged to explore a market model in which the same energy storage entity can participate in the market in two ways: independent capacity and joint capacity. This model is put forward, which makes the same subject can need according to the different functions of energy storage power station, the capacity of partition management involved in different markets, get more value returns, this will inspire all kinds of main body in technology, application, market model on continuous innovation, expand the existing in our country new energy storage business models, inspired the imagination of the market. Of course, if you want to really fall into the technical level, measurement and settlement, market mechanism, there are still many key problems to be solved.
3. Solve the problem of independent energy storage price and solve the key problems of entering the market. The Circular proposed to accelerate the participation of independent energy storage in the medium and long term market and spot market, and play the role of peak shifting and valley filling and peak power generation. If an independent energy storage station transmits electricity to the power grid, its corresponding charging power shall not bear the electricity price of transmission and distribution, governmental funds and additional charges. This a policy actually solves the problem of independent storage to participate in the market the most key, has long been a new energy storage due to its bidirectional regulation, to clear their identity to participate in the market, the provinces in the independent storage related policy, on energy storage or ignored the charge and discharge of electricity price, or to "put a set-off, loss since the bear" to encourage energy storage construction, But policies are not long-term and stable. Independent energy storage in the process of the charge and discharge played a peak shift and the peak power, if charged, according to charge power users, when the discharge in accordance with the power to give prices, will face repeated charge distribution electricity and government-managed funds and additional problems, at the same time in Lithium ion Batteries, for example, inflation was from 10% to 20% of the electricity will be loss, It will be difficult for independent energy storage to make money by participating in the electricity market. Taking Shandong market as an example, if the electricity charged does not bear the electricity transmission and distribution price and the government funds and additional, the electricity price cost of about 0.2 yuan can be reduced, which is a great benefit for the independent energy storage power station to participate in the market transaction!
4. Optimize the energy storage scheduling operation mechanism to ensure fair invocation. The Circular proposes to adhere to the market-oriented approach to optimize the scheduling operation of energy storage, local governments should establish and improve the market mechanism and scheduling operation mechanism adapted to the development of new energy storage, and put forward technical requirements for energy storage project owners, power trading institutions and power enterprises, and clarify the management responsibilities of all parties.
At the same time, relevant departments of local governments and dispatched agencies of the National Energy Administration are required to study and refine regulatory measures, strengthen supervision over independent energy storage dispatching and operation, and ensure that the energy storage power stations invested by social capital are operated fairly, with equal rights and utilization rates. For a long time, when social capital invests in the construction of independent energy storage power stations, whether the power station can be used fairly and reasonably is the most important issue for investors, which is directly related to the income and operation mode of the power station. It is clearly stated in the Notice that the energy storage power stations invested by social capital are guaranteed fair dispatching, equal rights and utilization rate, which is conducive to creating a fair and competitive market environment for the development of new energy storage and ensuring reasonable income of energy storage power stations.
5. Improve the price mechanism and reasonably guide the cost of energy storage. As a new member of the power system, the most critical issue for new energy storage to participate in the market is how to obtain benefits from its role value and how to share the benefits through reasonable channels. "Notice" proposed to give full play to the advantages of independent energy storage technology to provide auxiliary services. It is clear that the auxiliary service fees shall be reasonably shared by the grid-connected subjects and power users on the relevant power generation side according to the relevant provisions of the Administrative Measures for Electric Power Auxiliary Services and the principle of "who provides, who gains, who benefits and who bears".
Put forward the establishment of grid-side energy storage price mechanism, study the establishment of grid-side independent energy storage power station capacity price mechanism, and gradually promote the power station to participate in the power market; Explore how to include the cost and income of power grid alternative energy storage facilities into the recovery of power transmission and distribution price. By improving the electricity price mechanism, independent energy storage will get corresponding compensation through participation in the auxiliary service market and electricity and energy benefits through the spot market, and its capacity value will get stable benefits through the capacity electricity price, which will guarantee the reasonable income of independent energy storage power stations and truly release the market space.
At the same time, the circular stressed that all localities should strengthen scientific planning and effective supervision of power grid side energy storage. Effective supervision and reasonable incentives are the constraints on the capacity price of independent energy storage power stations on the grid side, and also the means to ensure the healthy and orderly development of the market.
In addition, the notice also puts forward requirements for user-side energy storage, management of new energy storage projects, and safety management of electrochemical energy storage power stations. The introduction of the Notice is to promote the full participation of new energy storage in the market, and its efforts to break the market mechanism barriers and solve key problems highlight the determination of the government authorities to promote the development of new energy storage! We believe that with the continuous improvement of market mechanism and the continuous development and maturity of technology, new energy storage will surely shoulder the great task of realizing the "double carbon" goal, and China will surely become the largest market leading the development of energy storage in the world!
