The First Domestic Combined Compressed Air and Lithium-Ion Battery Shared Energy Storage Power Station Has Commenced Construction

On July 20th, the innovative demonstration project of the combined compressed air and lithium-ion battery shared energy storage power station commenced in Maying Town, Tongwei County, Dingxi City, Gansu Province. This is the first energy storage project in China that combines compressed air and lithium-ion battery technology. The project is located in Dongguan Village, Maying Town, with a total investment of 812 million yuan, and the initial phase of the project covers an area of 82.86 acres, with an investment of approximately 396 million yuan. The project adopts a combined compressed air and lithium-ion battery energy storage system, with a total installed capacity of 50 MW/200 MWh and a discharge duration of 4 hours. The compressed air energy storage system has an installed capacity of 10 MW/110 MWh, and the lithium battery energy storage system has an installed capacity of 40 MW/90 MWh. Additionally, the project includes the construction of a 110 kV booster substation and transmission lines.

The world's First Prussian Blue Sodium-Ion Battery Energy Storage System Put into Use

Recently, the first demonstration project of Prussian blue sodium-ion battery energy storage system developed by Li-Fun Technology Co.,Ltd. and other companies has been put into use. A representative from Li-Fun Technology stated that the sodium-ion battery cathode materials are mainly composed of transition metal layered oxide, polyanion compounds and Prussian blue compounds. Among them, Prussian blue sodium-ion batteries have lower cost, higher capacity, and better rate performance, showing great potential in the future.

China's First Climbing Auxiliary Service Market Trading Rules for Comments

On August 8, the Shandong Regulatory Office of the National Energy Administration issued the "Notice on soliciting opinions on the" Shandong Power Climbing auxiliary Service Market Trading Rules (Draft for Comments) ", marking the official release of the draft for comments on the first domestic climbing auxiliary service market trading rules.The draft for comments include 36 articles related to the basic principles, market members, and organizations of climbing auxiliary services market trading, and etc. The “Compilation Instructions for Shandong Electric Power Climbing Auxiliary Services Market Trading Rules” points out that the current regulating capacity of the Shandong power system is not sufficient to meet actual demands. During the operation of the spot market, there have been instances of insufficient system regulating capacity in some time periods. In 2022, the real-time market experienced a total of 219 instances of insufficient ramp capacity, accounting for 0.625% of the time periods. Among them, 179 instances were peak ramping storage, mainly concentrated between January and May, and 40 instances were peak-load regulation climbing storage (imbalances even after the curtailment of renewable energy), occurring in February. The insufficient regulating capacity on the system's part has led, on the one hand, to the emergence of peak electricity prices, increasing electricity costs. On the other hand, it has added pressure to the secondary frequency regulation of the system, which is detrimental to the secure and reliable operation of the power grid.

Tibet Autonomous Region Issues the “Notice on Actively Promoting the Pilot Demonstration and Application of Grid-Forming Energy Storage Projects in the Tibet Electric Power System”

On July 24, the Development and Reform Commission of the Tibet Autonomous Region  issued the “Notice on Actively Promoting the Pilot Demonstration and Application of Grid-Forming Energy Storage Projects in the Tibet Electric Power System”. The “Notice” proposes to actively promote the pilot demonstration and application of grid-forming energy storage projects, encourages advanced trials in areas such as Ngari Prefecture, Nagqu City, Shigatse City and Lhasa City, and supports the steady progress in other regions and cities. For existing storage projects, the hardware and software of the energy storage system can be replaced and upgraded according to the evaluation situation, and incremental energy storage projects can be directly equipped with a complete set of grid-forming energy storage system equipment. Power generation enterprises that are willing to deploy grid-forming energy storage can choose the implementation path according to their own conditions. The “Notice” also emphasizes the priority scheduling of grid-forming energy storage pilot projects and encourages active participation in electricity market trading.

Notice Issued by the National Development and Reform Commission on Pumped Storage Power Station Capacity Tariffs and Related Matters

On May 15th, based on strict cost supervision, the National Development and Reform Commission, for the first time, approved the capacity tariffs for all pumped storage power stations in operation and those planned to be commissioned before the end of 2025, according to the new pumped storage pricing mechanism. "Notice on Pumped Storage Power Station Capacity Tariffs and Related Matters" was issued. The notice requires power grid enterprises to ensure power supply, guarantee grid safety, and promote the accelerated development of new energy, while making reasonable arrangements for the operation of pumped storage power stations. It also emphasizes the need for power grid enterprises to sign annual scheduling and operation agreements with the power stations, and to implement fair, open, and impartial dispatching. Local Development and Reform Commissions are instructed to strengthen the supervision of the implementation of pumped storage power station capacity tariffs.

The issuance of the notice provides clear pricing signals, facilitates the formation of a stable industry outlook, and mobilizes proactive efforts from all parties to promote the construction of pumped storage power stations. It enables the comprehensive operation benefits of the power stations and better facilitates the development of new energy, while ensuring the safe and stable operation of the power system.

Notice Issued by the National Development and Reform Commission on Provincial Power Grid Transmission and Distribution Tariffs for the Third Regulatory Period and Related Matters

On May 15th, the National Development and Reform Commission issued a notice on provincial power grid transmission and distribution tariffs for the third regulatory period and related matters, approving the tariffs based on strict cost supervision and further deepening the reform of transmission and distribution tariffs. This round of tariff reform has taken important steps in improving the regulatory system for transmission and distribution tariffs and accelerating the development of the electricity market. Firstly, the structure of transmission and distribution tariffs is more reasonable, with electricity prices for different voltage levels better reflecting the differences in power supply costs, thus creating favorable conditions for promoting electricity market transactions and facilitating the development of incremental distribution networks and microgrids. Secondly, the functional positioning of transmission and distribution tariffs is clearer, with line losses and pumped storage capacity charges, previously included in the tariffs, now separately accounted for. This change enables a more timely and reasonable reflection of changes in user electricity purchase losses and provides a clear reflection of the costs of power system regulation resources, further strengthening the regulation of grid permitted revenue. Thirdly, the incentive and restraint mechanisms are more robust, as demand tariffs for two-part tariff users with high load rates receive discounted rates, encouraging users to reasonably declare their capacity, thereby enhancing the economic efficiency of the power system.

Laibei Huadian Independent Energy Storage Power Station Successfully Grid-Connected

During the May Day holiday, the largest "power bank" in Jinan region, the Laibei Huadian Independent Energy Storage Power Station, was successfully grid-connected. The Laicheng Power Plant's 101 MW/206 MWh lithium iron phosphate and iron-chromium flow battery long-duration energy storage project, with a total investment of approximately 450 million yuan, was designed and constructed as a long-duration energy storage peak-shaving power station consisting of a 100 MW/200 MWh lithium iron phosphate battery and a 1 MW/6 MWh iron-chromium flow battery. The project mainly provides power ancillary services, grid peak shaving, and energy storage capacity leasing among the whole province. The project incorporates the latest energy storage technologies including high-voltage cascading, liquid cooling, and iron-chromium flow batteries. Additionally, in collaboration with the already operational 9 MW/4.5 MWh frequency regulation energy storage power station, the project explores the operation modes of "fire + storage for peak shaving" and "peak shaving + frequency regulation with combined energy storage." These modes fully leverage the adjustment capabilities of power sources and power stations, actively utilize the advantages of comprehensive energy services in thermal power plants, and the various technological combinations are all pioneering, demonstrating significant exemplification effects.

High-Temperature Molten Salt Rupture Accident Occurs in Thermal Energy Storage Project

On May 17th, the National Energy Administration issued a notice regarding the safety inspection of comprehensive energy utilization projects, including molten salt thermal energy storage. On May 7th, 2023, an accident involving high-temperature molten salt rupture occurred in a molten salt thermal energy storage project jointly operated by Henan Yuneng Holdings Co., Ltd., a subsidiary of Hebi Fenghe Power Generation Co., Ltd., and Rundian Energy Science and Technology Co., Ltd., a subsidiary of China Resources Power. The accident resulted in one fatality and 13 injuries.,After the incident, the leading officials and responsible officials of the administration issued instructions separately, demanding a systematic investigation of the molten salt thermal storage projects and their safety risk management situation.

Construction Begins on China's First Grid-Level Flywheel Energy Storage Frequency Regulation Power Station

On June 7th, Dinglun Energy Technology (Shanxi) Co., Ltd. officially commenced the construction of a 30 MW flywheel energy storage project located in Tunliu District, Changzhi City, Shanxi Province. This project represents China's first grid-level flywheel energy storage frequency regulation power station and is a key project in Shanxi Province, serving as one of the initial pilot demonstration projects for "new energy + energy storage." The station consists of 12 flywheel energy storage arrays composed of 120 flywheel energy storage units, which will be connected to the Shanxi power grid. The project will receive dispatch instructions from the grid and perform high-frequency charge and discharge operations, providing power ancillary services such as grid active power balance. With a total investment of 340 million yuan and a construction period of 6 months, it is expected to be grid-connected and put into operation in December of this year. Once completed, this project will become the world's largest flywheel energy storage power station, propelling China's flywheel energy storage technology into a new stage of large-scale commercial demonstration and expanding the technological and commercial value of flywheel energy storage.

Official Release of Energy Storage Subsidies in Xinjiang: Capacity Compensation of 0.2 CNY/kWh, Capacity Lease of 300 CNY/kW·year, and Peak Shaving Compensation of 0.55 CNY/kWh

On May 19th, the Development and Reform Commission of Xinjiang officially released the "Notice on Establishing and Improving Supporting Policies for the Healthy and Orderly Development of New Energy Storage." The notice outlines subsidy policies for new energy storage, including the following: Independent energy storage capacity will receive a capacity compensation of 0.2 CNY/kWh discharged, gradually decreasing by 20% annually starting from 2024 until 2025. For peak shaving and ancillary services, a compensation of 0.55 CNY/kWh will be provided for charging, and a compensation of 0.25 CNY/kWh will be provided for discharging (without simultaneous capacity compensation). Furthermore, it stipulates that independent energy storage systems operational in the four southern prefectures of Xinjiang must undergo a minimum of 100 complete charge and discharge cycles in 2023. The capacity lease price will be set at 300 CNY/kWh before 2025, and new energy enterprises and shared energy storage enterprises shall sign long-term lease agreements of over 10 years based on the  lease reference price of the year.

Guangdong Robust energy storage support policy: user-side energy storage peak-valley price gap widened, scenery project 10%·1h storage

On June 5, the Guangdong Provincial Development and Reform Commission and the Guangdong Provincial Energy Bureau issued Measures to Promote the Development of New Energy Storage Power Stations in Guangdong Province, which mainly proposed 25 measures from five aspects: expanding diversified applications, strengthening policy support, improving operation scheduling mechanism, standardizing project construction management, and strengthening coordination guarantee. To promote the integration of new energy generation with new energy storage, offshore wind power projects, centralized photovoltaic power stations, and onshore centralized wind power projects must be equipped with new energy storage facilities that are no less than 10% of the installed capacity and have a duration of 1 hour. User-side energy storage projects that utilize products recognized as meeting advanced and high-quality product standards shall be charged electricity prices based on the province-wide cool storage electricity price policy (i.e., the peak-valley ratio will be adjusted from 1.7:1:0.38 to 1.65:1:0.25, and the peak-valley price differential ratio will be adjusted from 4.47 times to 6.6 times).

The National Energy Administration approved 310 energy industry standards such as Technical Guidelines for New Energy Storage Planning for Power Transmission Configuration of New Energy Bases

On June 12, the National Energy Administration approved 310 energy industry standards such as "New Energy Base power Transmission Configuration New energy storage Planning Technical Guidelines" and 19 foreign language editions of energy industry standards such as "Code for Seismic Design of Hydropower Projects". Industry standards related to energy storage include: Specifications for Economic Evaluation of Pumped storage Power Stations, Technical Guidelines for New Energy Storage Planning for Power Transmission Configuration of New Energy Bases, Guidelines for Post-Evaluation of Fire-Pumped Storage Frequency Regulation Projects, Operation and Maintenance Regulations for Compressed Air Energy Storage Power Stations, "Technical Conditions for Carbon Plastic Composite Bipolar Plates Used in All-Vanadium Flow Batteries," and "Testing Methods for Zinc-Nickel Flow Battery Electrodes," among others.