First Batch of National Energy Administration (NEA) Energy Storage Demonstration Projects are Publicized

On November 10, 2020, the National Energy Administration published a list of its first batch of science and technology innovation (energy storage) pilot demonstration projects. The list of projects includes generation-side, behind-the-meter, and grid-side applications, as well as thermal-generation-bundled energy storage for frequency regulation. Two projects have been announced in each application, totaling eight selected projects. Since the 2017 release of the “Guiding Opinions on Promoting Energy Storage Technology and Industry Development”, promotion of energy storage demonstration projects has been a dominant focus of the NEA. Following two years of solicitation of opinions from industry experts and several rounds of discussions, screening of the first batch of demonstration projects began in July 2020. Projects were selected from among nationwide operational energy storage projects (excluding pumped-hydro storage project). The first batch of announced demonstration projects are located primarily in Qinghai, Hebei, Fujian, Jiangsu, and Guangdong provinces, and more than 17 companies have participated in project investment and construction.

According to statistics from the China Energy Storage Alliance (CNESA), by the first half of 2020, the accumulative installed capacity of energy storage put into operation in China had reached 32.7GW, accounting for 17.6% of the worldwide market. Among this total, electrochemical energy storage reached 1,831MW. The rapid development of energy storage has not only led to an accumulation of practical experience, but has also exposed various problems in the development process which require in-depth analysis. The solicitation and screening of demonstration projects has set new benchmarks and models for the industry. Through investigation and communication with relevant stakeholders and industry experts involved in project implementation, China Energy Storage Alliance has summarized the following characteristics of the demonstration projects:

  • The demonstration projects reflect the comprehensive value and benefits of energy storage. Indicators for selection include technological advancement, usage scenario, level of innovation, safety measures, comprehensive benefits, economic efficiency, and regional government support.

  • The demonstration projects are of a comprehensive and representative type. Projects cover generation-side (both renewable energy generation and conventional thermal generation), grid-side, and behind-the-meter applications, while technologies include electrochemical, physical, and thermal storage.

  • The demonstration project evaluation index is reasonable, reflecting advancement and creativity. The majority of electrochemical projects have a roundtrip efficiency of 85%, while the thermal energy storage projects demonstrate an efficiency of up to 75%. The projects display the comprehensive benefits of energy storage in a variety of application fields, and have significant value for the safe and stable operation of the power system and the large-scale development and utilization of renewable energy.