On November 27, the National Energy Administration released its No. 5 announcement for 2020, approving 502 energy industry standards. Seven of the announced standards relate to energy storage, covering areas including supercapacitors for electric energy storage, code specifications for traceability of electrochemical energy storage systems, design specification for electrochemical energy storage stations accessing the grid, and design specification for distributed electrochemical energy storage systems accessing the distribution network. The new standards will take effect on February 1st, 2021.
Six Provinces and Municipalities Issue Documents Encouraging Development of Unified Solar, Storage, and Charging Facilities
On November 19, the Anhui Hefei Municipal People's Government issued “Opinions on Accelerating the Development of the Electric Vehicles Industry,” which encourages development of demonstration projects exploring electric vehicles, battery charging and swapping stations, energy storage stations, and efficient grid interaction demonstration applications. The announcement also encourages the construction of multifunctional integrated "solar-storage-charging-and-discharging" stations (systems which include distributed solar, an energy storage system, and charging and discharging infrastructure). Hefei is the sixth province and/or city to have issued documents encouraging the development of integrated solar-storage-charging facilities.
In November 2018, the Guangzhou Industry and Information Technology Commission issued a three-year action plan (2018-2020) for accelerating the construction of electric vehicle charging infrastructure. The plan promotes the construction of a batch of charging infrastructure "demonstration units" and "demonstration areas" to carry out microgrid demonstration projects, integrated with solar, energy storage, and charging functions.
In November 2018, the Shenyang People's Government Office issued a notice announcing plans to promote the growth of the electric vehicle industry. The plans include the development of an EV demonstration project at the China-Germany Equipment Park which will feature a "roof plan" for the park’s bus depot. The roof plan will consist of a unified solar-storage-charging station, strengthening energy production and increasing the use of clean, renewable energy.
In January 2019, the Jiangsu Department of Industry and Information Technology, the Jiangsu Development and Reform Commission and three additional departments jointly issued "Measures for the Construction, Operation, and Management of Electric Vehicle Charging Facilities in Jiangsu." Qualified constructors and operators of charging facilities can register and obtain a license for selling electricity, allowing them to participate in electricity market transactions. The local government is also encouraged to support the development of unified solar storage and charging facilities.
On April 13, 2020, the Jinan Development and Reform Commission issued “Opinions on Accelerating the Construction of Electric Vehicle Charging Infrastructure in Jinan (Draft for Comments)”, which encourages the development of unified "solar-storage-charging" facilities.
In July 2020, the Fujian Department of Industry and Information Technology issued “Three-year (2020-2022) Action Plan for the Construction of ‘Electric Fujian’”, which states that wind plants and solar stations should be encouraged to bundle with energy storage systems to improve power quality. The plan also promotes the commercial application of energy storage through the construction of several projects including wind and solar integrated with storage, solar-storage-charging stations, and energy storage stations.
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.
China’s First Independent Commercial Energy Storage Station Launches in Golmud, Qinghai Province
On November 5, the Shanghai Electric Golmud Meiman Minhang 32MW/64MWh energy storage station in Golmud, Qinghai province officially went into operation. The project features battery systems installed in two cargo sheds in a warehouse style. The system stores renewable energy during periods of high wind or solar curtailment and transfers the stored electricity to the grid when needed. It can provide effective power smoothing and enhance the quality of renewable power generation.
The first phase of the project consists of a 32MW/64MWh energy storage system. Shanghai Electric Gotion New Energy Technology Co. has provided the lithium-ion battery system, while EPC has been provided by Shanghai Electric New Energy Co. The energy storage station is connected to the local Qinghai grid, reducing solar and wind curtailment for nearby renewable power plants. The project is part of the new “shared energy storage” model which allows it to be shared among multiple renewable energy station owners, thereby increasing investment returns, and serving as an innovative pilot for the promotion of greater renewable energy penetration.
Four Renewable Energy + Energy Storage Projects in Hunan Begin EPC Bidding
On October 30, State Grid Hunan Comprehensive Energy Service Co., Ltd. issued a bidding announcement for four renewable energy bundled energy storage projects in the cities of Chenzhou, Yongzhou, Loudi, and Shaoyang. Bidding has been divided into four contracts, which include 22.5MW/45MWh of capacity in Chenzhou, 7.5MW/15MWh in Loudi, 20MW/40MWh in Yongzhou, and 10MW/20MWh in Shaoyang. The projects have a combined total capacity of 60MW/120MWh. Grid connection testing is expected to take place in February 2021.
The maximum total price for the projects has been limited to 6.79 million RMB, and the maximum unit price has been limited to approximately 0.566 RMB per Wh. Among the four projects, the highest unit price is 0.698 RMB per Wh, while the lowest unit price is approximately 0.523 RMB per Wh. EPC development of the project will include project survey, design, construction, and equipment commissioning, but excludes the energy storage station (including batteries, battery management system, containers, and in-box smart auxiliary system), PCS equipment, and other materials procurement.
Project investment and construction is led by State Grid Hunan Comprehensive Energy Service Co., LTD., a joint venture between State Grid Hunan Electric Power Company and State Grid Comprehensive Energy Group, at 60% and 40% ownership, respectively. The project will utilize the State Grid Hunan Comprehensive Energy Service Co. leasing model, which leases energy storage equipment for the construction of energy storage stations, which are in turn leased to wind power companies.
Bidding Begins on Three of 28 Wind Storage Projects in Hunan
Recently, the State Power Investment Corporation and the China Three Gorges Renewables Corporation have launched bidding on three wind power energy storage projects in Hunan province, marking the official launch of the first batch of renewables energy + energy storage projects in Hunan Province.
In March 2020, the development department of the State Grid Hunan Electric Power Co., Ltd. issued a “Notice on the Primary Selection of Energy Storage Project Sites,” which showed that 28 companies in Hunan had committed to developing renewable projects with a total 388.6MW/777.2MWh of energy storage installation capacity. Three of these 28 projects have now begun the bidding process, they include: the Hongtangying wind power plant 10MW/20MWh energy storage demonstration project in Dao County, the State Power Investment Hunan Longshan Dalingshan wind power project paired with 10MW/20MWh energy storage capacity, and the Hunan Channel Phase II 10MW/20MWh capacity energy storage project.
Clean Heating and Solar+Storage+Charging—First Integrated Energy Demonstration Project Constructed in Xinjiang
Xinjiang Comprehensive Energy Service Co., Ltd. and Hami Power Supply Co., Ltd. signed an agreement for investment and construction of an "integrated clean heating and solar+storage+charging" energy demonstration project. Xinjiang Comprehensive Energy Service Co. is responsible for investment, operation, and maintenance of the demonstration project which will be constructed at the Hami Taojiagong Power Supply. As of September 8, the construction of the project’s rooftop distributed solar station, energy storage station, regenerative electric boiler, and electric power supporting facilities has been completed. The construction of two DC charging stations and two AC charging stations has begun, and is planned to be completed by the end of September.
The project primarily consists of a rooftop solar station, EV charging station, regenerative electric boiler, energy storage station, and 5G base station, as well as other components. The distributed solar station is constructed as part of the roof and parking canopy, which are used for daily electricity consumption and providing charging services for local EVs. In summer, the surplus of solar energy can be sold to the grid through the energy storage station. In winter, the advantage of Xinjiang's off-peak electricity price can be used to store energy at night and supply energy for heating during daytime, so as to provide clean heating that is energy saving, environmentally friendly, and low carbon.
China’s Largest Wind Power Energy Storage Project Approved for Grid Connection
On August 27, 2020, the Huaneng Mengcheng wind power 40MW/40MWh energy storage project was approved for grid connection by State Grid Anhui Electric Power Co., LTD. Project engineering, procurement, and construction (EPC) was provided by Nanjing NR Electric Co., Ltd., while the project’s container energy storage battery system was supplied by Gotion High-tech. This project is currently the largest combined wind power and energy storage project in China.
The Inland Plain Wind Farm Project in Mengcheng County is owned by the Anhui Branch of Huaneng International. The project has a total installed capacity of 200MW, with a paired energy storage capacity of 20% and duration of one hour. The energy storage system construction is divided into two phases. Phase one is the 150MW Xiaojian project, while phase two is the 50MW Xutuan project. In May 2020, the project EPC bidding results were revealed. NR Electric Co., Ltd. was awarded the phase one project with a bid of 52,794,970 RMB, and additionally awarded the phase two project with a 19,794,775 RMB bid. The systems were delivered in less than 3 months.
The control system of the energy storage station adopts the IEC-61850 standard specification, achieving fast power control function through a unified hardware and software platform consisting of a coordinated control system and converter group. Primary frequency control and voltage control response speed is less than 30ms. The project realizes the stable, transient, and urgent multi-dimensional composite control function of energy storage in renewable energy applications for the first time in China, maximizes the application value of energy storage in renewable energy scenarios, and provides demonstration of the multiple functions of energy storage for renewable energy projects.
Guiding Opinions on "Integration of Wind-Solar-Hydro-Thermal-Storage" and "Integration of Generation-Grid-Load-Storage" (Draft for Comments)
On August 27, the National Development and Reform Commission and the National Energy Administration issued a notice soliciting opinions on “National Development and Reform Commission & National Energy Administration Guiding Opinions on Developing ‘Wind, Solar, Hydro, Thermal, and Storage Integration’ and ‘Generation, Grid, Load, and Storage Integration’ (Draft for Comment).” The announcement states that “wind, solar, hydro, thermal, and storage integration” should focus on the development of power supply bases which combine local resources and energy characteristics. These bases should adopt wind, solar, hydropower, coal, and other energy sources to supplement each other according to local conditions, along with an appropriate proportion of energy storage. The planning, design, construction, and operation of various power sources should be coordinated in order to explore “wind, solar, and storage integration” and develop such integration in a manner suited to regional conditions.
Understanding the Goals of the First Batch of National Energy Administration Energy Storage Demonstration Projects
Since the release of the “Guiding Opinions on Promoting Energy Storage Technology and Industry Development” in 2017, China's energy storage industry has been developing rapidly. After more than two years of preparation and planning, the National Energy Administration officially solicited the first batch of energy storage demonstration projects in China on July 17 of this year. The organization and selection of this batch of energy storage demonstration projects will help to analyze and summarize successful experiences and existing problems, promote the integrated innovation of advanced energy storage technologies, equipment, and systems, established and improved relevant technical standards and engineering norms, cultivate business models with market competitiveness, and promoted the introduction of relevant policies and regulations in support of the development of energy storage.
As a supporting organization of the National Energy Administration, China Energy Storage Alliance (CNESA) has been participating in a variety of works in support of the demonstration project, assisting in organizing industry experts and upstream and downstream enterprises to share their opinions and participate in discussions. Key indicators for the energy storage demonstration projects include:
1. Demonstration projects should reflect advanced technologies and independent innovation
Screening indicators include equipment lifecycle, conversion efficiency, system performance, system reliability, project layout, environmental protection, etc. Declared projects should reflect independent innovation and encourage the use of original technologies with independent intellectual property rights. Screening indicators include the level of autonomy of core technologies and equipment, whether there are significant original technologies, and whether there are relevant patents and software copyrights.
2. Demonstration projects must consider safety precautions
To avoid hidden dangers and risks in energy storage system integration and equipment operations, a detailed product inspection report is needed to illustrate whether the energy storage components and related electrical equipment can meet relevant national or trade standards. Projects need to ensure that the system is matching the application procedures and grading of information safety, emergency response planning, monitoring facilities, fire warning system, firefighting system, etc., and should consider how to deal with extreme weather and power system risks.
3. Demonstration projects should reflect the comprehensive benefits of energy storage
In addition to demonstrating technological innovations, demonstration projects also need to carry out quantitative and qualitative evaluation of comprehensive benefits under specific application scenarios. First, the project must be systematically analyzed from the perspective of full life cycle management, and a reasonable resource recycling plan must be designed. All kinds of project costs should be fully considered in terms of construction, operation and maintenance, as well as all kinds of non-technical costs, reflecting the real situation of the industry. Second, analysis must be conducted on the efficient utilization of clean energy and the comprehensive benefit of energy storage under specific application scenarios. In the process of expounding the comprehensive economic benefits of the project, quantitative or qualitative judgment is also needed, and corresponding supporting basis should be provided.
4. The economic indicators of the demonstration projects need to be fully assessed
Low economic value is a common phenomenon in current energy storage projects. In the process of evaluating the economic index of the project, on the one hand, it should be evaluated whether the demonstration project can break through the market mechanism bottleneck through innovative models or regional policies adapted to local conditions, and effectively explore the establishment of a long-term mechanism of industry development. On the other hand, it is also necessary that through the application of advanced technologies, the demonstration project can provide feedback for the implementation of local supporting electricity markets and ancillary power service policies.
Construction Begins on “Salt Cave Compressed Air Energy Storage National Test and Demonstration Project”
On August 18, the main construction of the "Salt Cave Compressed Air Energy Storage National Test and Demonstration Project" begin in Xuebu town, marking the project’s entrance into the critical period of construction. The Jintan salt cave CAES project is a first-phase project with planned installed power generation capacity of 60MW and energy storage capacity of 300MWh.
The non-afterburning compressed air energy storage power generation technology possesses advantages such as large capacity, long life cycle, low cost, and fast response speed. The project makes full use of underground salt cavity resources with compressed air as the main medium. This new type of energy storage technology helps save land resources, is environmentally friendly, and provides efficient peak shaving, among other advantages. The completed project will help to solve the problem of wind and solar curtailment, alleviate the current challenge of energy shortage in Jiangsu province, and promote the commercial development process of advanced technologies and equipment in the domestic energy storage industry.
As Solar+Energy Storage Becomes a Leading Trend, what is the Best Configuration to Maximize Benefit?
Energy storage has become a hot topic in the energy field. More than 10 provinces, include Shandong, Shanxi, Xinjiang, Inner Mongolia, Anhui, and Tibet, have released policies to encourage energy storage applications in solar stations and wind farms. Energy storage has been recognized as a key technology to solve the intermittency and volatility of renewable energy, promote renewable penetration, and reduce wind and solar curtailment. Opportunities for energy storage increase as the era of solar price parity comes closer.
In order to generate sustainable profits, more effort is required in solar+energy storage technology integration, system efficiency, and security. Currently in China, system integrators for solar+energy storage project are still very rare. Combining solar generation with battery storage is not simply a matter of combining equipment, rather, the integrator must solve hardware and software interface compatibility problems between different devices. System security management is also a key issue. A complete system protection design is needed which can provide system monitoring, risk pre-alert, and provide relative protection.