Battery energy storage: Improve the construction level of new energy storage technologies
A few days ago, China issued the “Notice on Further Promoting the Participation of New Energy Storage in the Electricity Market and Dispatching Application”.
As the first policy document for new energy storage to participate in the power market and dispatch operation, the “Notice” puts forward specific requirements on the identity positioning, electricity price mechanism, and dispatching rules of new energy storage in the power market, and realizes large-scale new energy storage.
Lithium Battery Energy Storage System
New energy storage has the advantages of fast response, flexible configuration, and short construction period. It can play an important regulating role in the new power system with an increasing proportion of new energy, and is an important support for achieving the goal of carbon peaking and carbon neutrality.
For some time, a series of relevant policies have clearly pointed out that it is necessary to strengthen the research, demonstration and industrial application of new energy storage technologies such as electrochemistry and compressed air.
In July 2021, the National Development and Reform Commission and the National Energy Administration issued guidelines to make overall arrangements for new energy storage technology advancement, policy mechanisms, industry management and other policies.
In March this year, China deployed key tasks for new energy storage in terms of technological innovation, pilot demonstrations, and policy guarantees.
Under the guidance and support of relevant policies, the development of China’s new energy storage industry has accelerated significantly.
By the end of 2021, the installed capacity of new energy storage will reach 5.7 million kilowatts, a year-on-year increase of more than 70%.
However, the current new energy storage is still in the initial stage of large-scale development, and still faces problems such as high cost, limited application scenarios, and a single source of income, especially the specific rules for new energy storage to participate in the power market need to be improved.
It is difficult to give full play to the multi-application value of the system. The “Notice” focuses on the current obstacles encountered by new energy storage in participating in the power market, and proposes specific measures to improve the market mechanism, price mechanism, operation mechanism, etc., which will help improve the overall utilization level of new energy storage, enhance market attractiveness, and promote Sustainability of the industry.
Multiple measures
To further develop new energy storage, multiple measures should be taken simultaneously and rationally implemented
- First, must innovate the operating model. The independent energy storage power station is an important flexible resource of the future power system, which can effectively realize the automatic dispatch of the power grid and ensure the security of power supply.
- Second, must promote integrated development. The large-scale development of new energy sources such as wind power and photovoltaic power generation has increased the volatility of the power supply.
With the development of large-scale wind power/photovoltaic power bases in deserts, Gobi, desert and other regions, the application scenarios of “new energy + energy storage” will become more diverse, which will further help the construction of new power systems and promote the green and low-carbon transformation of energy and power. - Third, must improve the price mechanism. The new energy storage has the characteristics of quick response, flexible adjustment, and can play a variety of dispatching characteristics in power operation.
Independent energy storage systems (such as lithium battery energy storage systems/ESS) should be encouraged to give full play to their technological advantages, establish a capacity electricity price mechanism for grid-independent energy storage power stations, and research and develop a mechanism that incorporates the cost and benefits of energy storage facilities into the transmission and distribution price recovery mechanism.
