On Sep 28, the China Energy Storage Alliance hosted the 2020 Energy Storage West Forum in Xining, Qinghai, with support from the China Energy Research Society Energy Storage Committee, British Embassy Beijing, and China Huaneng Group Renewable Energy Technologies Research Center.
China’s western region is one of the country’s important clean energy generation bases and a key component to the Belt and Road project. As the coordinated development of renewable energy and energy storage becomes a driving trend, the abundant renewable energy resources in the west and the promotion of energy storage technology applications will inevitably become important supporters for the rapid development of energy storage in China. In addition, as the coordinated development of renewable energy and energy storage becomes a driving trend, the ancillary services market mechanism (in its transitional stage) becomes an important policy guarantee for integrated renewable energy and energy storage applications.
This year’s forum focused on the theme “Exploring an Ancillary Services Market Development Path in Support of High Grid Penetration of Renewable Energy,” featuring discussions examining ways to integrate ancillary services and energy storage. The forum provided support for China Energy Storage Alliance’s current research on ancillary services market development for high renewable energy penetration in China, which is guided by the National Energy Administration and supported by the UK China Prosperity Fund Energy and Low Carbon Economy Programme. The forum also gathered industry colleagues devoted to the development of the western energy storage market together to explore ways to better create innovative energy storage applications in the west, and provide western regional governments with support to implement policies beneficial to energy storage. These discussions help contribute to the establishment of a system and mechanism for commercial applications of energy storage that meets the characteristics of the northwest region.
Opening addresses were delivered by leaders from the National Energy Administration, Qinghai Energy Administration, Haixizhou Energy Administration, the British Embassy Beijing, China Huaneng Group Renewable Energy Technologies Research Center, and the China Energy Storage Alliance. CNESA secretary general Liu Wei hosted the forum’s opening session. Liaoning Power Grid former lead engineer Wang Zhiming served as host for the keynote sessions.
The opening ceremony began with remarks from Lei Xiang, researcher at the Department of Science and Technology Equipment, National Energy Administration. Mr. Lei stated that energy storage development has now entered the beginning stages of commercialization. The importance of energy storage to the energy system transition has begun to become apparent, but technological, economic, and safety barriers, as well as the lack of a mature market mechanism, are still major challenges. There are five major areas which require improvement: first, strengthening of overall planning to create a mechanism which increases clean energy generation and consumption that is supported by energy storage. Second, strengthening of power market mechanisms, creating a positive development environment for commercial operations of energy storage. Third, optimizing dispatch operations mechanisms to promote the paired operations of energy storage and clean energy. Fourth, creating a technical standards system which will support sustainable industry development. Fifth, supporting the development of pilot projects in key regions to find new models for the future of energy storage.
Zhou Wu, vice director of the Qinghai Energy Administration, said that Qinghai has been exploring the use of 100% clean energy for many years, in the past achieving world records by running on 100% renewable energy for separate periods of seven, nine, fifteen, thirty, and 100 days. To ensure a long-term stable supply of large-scale renewable energy, an ancillary services market powered by energy storage is indispensable. Mr. Zhou stated that the Qinghai Energy Administration would continue to promote the development of the Qinghai energy storage market.
Ang Zhi, director of the Qinghai Haixizhou Energy Administration, stated that Haixizhou renewable energy capacity, both under construction and in operation, totaled 12.99 million kilowatts. Haixizhou is currently planning the implementation of a variety of energy storage projects, and has already reached 125,600 kilowatts of installed energy storage capacity. Haixizhou has achieved a great deal of development potential in the green energy sector, and possesses the basic conditions needed to carry out national plans for “green energy + energy storage.” The prospects for development and application of energy storage technologies are broad. Pumped hydro storage, electrochemical storage, hydrogen storage, and compressed air energy storage technologies all show potential for application in Haixizhou.
Conor Gask, head of renewables and power sector at the British Embassy Beijing, joined the forum through prerecorded viedo. Mr. Gask stated that both China and the UK are world leaders in clean energy technologies, and that cooperation and information exchange between the two countries is important to achieving the rapid deployment of clean energy technologies. Through the support of the UK government’s China Prosperity Fund Energy and Low Carbon Economy Programme, CNESA is currently developing a national roadmap for ancillary services market development. This roadmap will support greater flexibility in the grid as well as greater penetration of renewables. Mr. Gask expressed hope that the project would contribute to China’s carbon reduction goals, and would encourage greater collaboration between China and the UK in energy storage, ancillary services market design, and broader energy system reforms.
Ren Libing, secretary of discipline inspection at the China Huaneng Group Renewable Energy Technologies Research Center, stated that energy storage is an effective means for promoting the energy revolution, providing flexible peak shaving services, tackling curtailment issues, and increasing grid safety. The Huaneng Renewable Energy Technologies Research Center has been involved in energy storage research for more than 10 years, and currently has more than 300MWh of energy storage capacity both under construction and operational. The research center’s current focus is on the theme “New Strategies for Energy Safety,” promoting the use of innovative development in clean energy sources and working to contribute to a sustainable and efficient energy storage industry.
Yu Zhenhua, vice chairman of the China Energy Storage Alliance, stated that western China features excellent renewable energy resources, and has been the setting for many innovative energy storage models in recent years. The region is well-suited for exploring renewable energy and energy storage paired development models. There is no doubt that renewable energy capacity development goals are beneficial to energy storage, yet energy storage still faces many challenges such as the lack of a clear identity, a lack of market diversity, and lack of a long-term mechanism for sustainability. These challenges must all be confronted and overcome. Chairman Yu also said that top-level energy development plans are still based on past experiences and understanding, while the current fast-paced development of energy storage signifies that future 10-year and 30-year energy planning goals and energy storage structure goals may require adjustment.
Li Hong, professor at the Chinese Academy of Sciences Institute of Physics, stated that China possesses strong determination to develop renewable energy, smart grids, and an Internet of Energy. Development of energy storage is strategically important to help optimize China’s energy structure and increase energy safety. The “Fourteenth Five-year Plan” hopes to increase the safety, lifespan, power rating, and energy efficiency of energy storage technologies, as well as improve response times and bring costs to below .2 RMB per kilowatt hour. As development continues, those companies which possess the greatest technological competitiveness, the most practical experience, and the strongest ability to integrate resources throughout the entire life cycle and the entire industry chain will eventually become the biggest winners.
Wang Jianxue, professor at Xi’an Jiaotong University, stated his belief that ancillary services are both technically complex and display rudimentary market coupling, making them prone to speculation. Whether ancillary services costs are reasonable and whether operations are stable are some of the key indicators of market-oriented reform. Prof. Wang stated that ancillary services costs should be apportioned to the user. For example, users which produce high levels of pollution and therefore require a greater amount of ancillary service resources than other users should be required to participate in the ancillary services apportionment mechanism.
Liu Mingyi, energy storage project development director at the China Huaneng Group Renewable Energy Technologies Research Center, stated that in October 2019, Huaneng Group positioned energy storage as a key area of focus. Core goals include large capacities, low costs, long lifespans, high efficiency, and increased safety. Huaneng has currently created a billion-renminbi energy storage market, and in the future the group hopes to create a market in the hundreds of billions.
Liu Mingyi and Professor Zheng Hua of North China Electric Power University were the hosts of the roundtable discussions “Exploring Development Path and Models for a Qinghai Ancillary Services Market Supporting High Renewable Penetration” and “Exploring A National Ancillary Services Market Roadmap and Mechanism Design.” Representatives from North China Electric Power University, Luneng Group, Qinghai Guangheng New Energy Co., Shanghai Electric Power Design Institute, Qinghai NEGO & Beijing NEGO Automation Technology, Zhiguang, State Grid Liaoning Dispatch Center, State Grid Ningxia Dispatch Center Control Office, Huadian Shanxi Energy Co., State Grid Jiangsu Electric Power Co. Planning and Development Research Center, and CLOU engaged in discussions on models and pathways for developing ancillary markets which support high penetration of renewables.
Additional presentations were delivered by energy storage companies and stakeholders such as Kelong, Soaring, SVOLT, Sungrow, Chungway, the Inner Mongolia Autonomous Region Electrical Engineering Society, BYD Auto Industry, and State Grid Jilin Dispatch Center. These presenters shared experiences on practical development and deployment of energy storage technologies for ancillary services applications, as well as methods for developing a national ancillary services roadmap in support of energy storage.