State Council Executive Meeting: Actively Promote the Construction of Energy Storage Capacity, Make Sure the Power Price Fluctuation Range Not Exceed 20%

Promote the entry of all coal-fired power generation electricity into the electricity market in an orderly manner. Under the premise of maintaining stable electricity prices for residents, agriculture, and public welfare undertakings, the fluctuation range of market transaction electricity prices will be adjusted from no more than 10% and 15%, respectively, to the principle of more than 20%, and classification adjustments should be made. For high-energy-consuming industries, prices can be formed by market transactions, and they are not subject to the rise of 20%. Encourage local governments to implement phased preferential policies for small and micro enterprises and individual industrial and commercial households. Fifth, we must accelerate the construction of large-scale wind power and photovoltaic bases in the Gobi desert area, and accelerate the construction of emergency backup and peak shaving power sources. Actively promote the construction of coal, natural gas, crude oil reserves and energy storage capacity.

The Energy Storage Ratio 15%-30%! Public Announcement of The List of Guaranteed Grid-connected Centralized Wind and Solar Projects in Inner Mongolia in 2021

On October 8, the Energy Administration of Inner Mongolia Autonomous Region announced the optimized results of guaranteed grid-connected centralized wind power and photovoltaic power generation projects in 2021: the total scale of photovoltaic projects is 3.85 million kilowatts, the total scale of wind power projects is 6.8 million kilowatts, and the total is 10.65 million kilowatts. . According to the publicized project table, the proportion of energy storage configuration ranges from 15% to 30%. Among them, there are 35 wind power projects with a total of 1990MW/3980MWh of energy storage; 25 photovoltaic projects with a total of 889MW/1778MWh of energy storage, with a total capacity of 2879MW/5758MWh.

Previously, in the "Notice on Development and Construction of Wind Power and Photovoltaic Power Generation in 2021" issued by the Energy Administration of Inner Mongolia Autonomous Region, the declaration requirements for wind power and photovoltaic power were clearly stated that the electrochemical energy storage capacity should be no less than 15%. 2 hours. At that time, the industry estimated that the total scale of energy storage in Inner Mongolia would reach 1.5GW/3GWh. This means that the energy storage ratio and total scale proposed by Inner Mongolia far exceed expectations.

Shandong Energy Storage participates in ancillary service market for the first time

Late in May, the Shandong Energy Regulatory Office released the settlement of the new energy "two rules" and auxiliary services market in April 2021, and six energy storage power stations received a total of RMB267,500 in compensation for peak shaving. This is also the first time for Shandong Energy Storage Power Station to participate in the ancillary service market and publicize the compensation results.

Among the six energy storage power stations, Yuwangzhongjing Energy Storage Power Station has the highest peak shaving income of RMB92,383, ranking first in the province. The Tushanshengyang Energy Storage Project in Yantai, which was partly constructed by Yangguang Power, was the next, with RMB60,772. According to the data, the six photovoltaic power stations equipped with energy storage paid a total of RMB635,500 for peak shaving in April, while the energy storage income reached RMB267,500, accounting for 43.6% of the total allocation. The proportion of several energy storage power stations in the peak shaving allocation of the corresponding photovoltaic project varies from 12% to 61%.

At present, Shandong is vigorously promoting the development of energy storage. Shortly before the Shandong province issued The Implementation Opinions to Carry out the Energy Storage Application Demonstration, and the file points out that the new centralized wind power, photovoltaic power generation project, in principle should construct or lease storage facilities no less than 10%, and continuous charging time should be no less than 2 hours. The file has also clarified that compensation standard for energy storage demonstration project to participate in power grid peak shaving is RMB 200 / MWh. In addition, 1.6 hours of peak shaving priority power generation plan will be given for every 1 hour of charging accumulatively. The first energy storage demonstration projects will have a scale of about 500,000 kilowatts, and the policy is tentatively scheduled to be implemented for five years.

Gansu encourages the construction of wind-solar + energy storage projects to play the role of energy storage

On May 31, the Office of the Gansu Government issued the Opinions on Cultivating and Strengthening the Industrial Chain of New Energy, which pointed out that the industrial chain of emerging fields such as hydrogen energy utilization, new energy storage and solar power generation should be accelerated.

Accelerate the development of new energy storage industry technologies: encourage demonstrations of energy storage industry, build a number of mobile or fixed commercial energy storage power stations, and promote innovation of energy storage business models. Promote the commercial demonstration and application of energy storage technologies such as gravity compressed air energy storage. In addition, the document also encourages enterprises to build multi-energy complementary projects of "wind/solar + energy storage", optimize the scale of supporting energy storage, give full play to the role of supporting energy storage in peak shaving, and reduce the cost of integrated power generation of wind-solar storage.

In combination with the development of incremental distribution networks, we will focus on introducing adjustable loads, carry out trials to connect new energy sources to the grid on a market-based basis, continue to lower electricity prices for new and stable loads, and develop green power supply parks that integrate power, grid, load and storage. Combined with clean heating and clean energy consumption, we will actively explore the demonstration of integrated power, grid, load and storage.

The first power plant side energy storage industry standards were officially released

Recently, the two industry standards Grid Connectivity Management Specifications for Power Plant Side Energy Storage System Participating in Auxiliary Frequency Modulation(DL/T 2313-2021) and Power Plant Side Energy Storage System Dispatch Operation Management Specifications(DL/T 2314-2021), led by China Southern Power Grid Corporation, have been approved and officially released by the National Energy Administration. It will be implemented on October 26 this year. It is reported that two industry standards are the first domestic power plant side energy storage standards, filled the blank of the domestic power plant side storage grid and dispatching operation management standard. The National Power Storage Standard Committee think two industry standards result in the international leading role. It provides an authoritative reference for guiding the side energy storage system of power plant to connect to power grid safely and normatively.

Since the first power plant side energy storage project entered the FM market in 2018, Guangdong's grid-connected scale has exceeded 300,000 KW, forming the most active energy storage market in China. In the situation of power plant side energy storage blowout development, the lack of corresponding operation management standards will restrict the further development of energy storage industry. Since July 2019, Guangdong Power Grid Corporation led the National Grid Corporation, Inner Mongolia Power Grid Corporation and related power generation groups to organize field research and centralized compilation for many times, and finally successfully passed the evaluation of the National Power Storage Standard Committee, which considered that the achievement was internationally leading. These two standards standardize the technical management requirements of the power plant side energy storage system in the grid-connection process, grid-connection conditions, commissioning and trial operation, as well as the whole chain of scheduling and operation. In the next step, Guangdong Power Grid Corporation and National Power Storage Standard Committee will organize and publicize the interpretation of standard provisions, promote the summary of practical experience in Guangdong to the whole country, and further standardize the requirements of grid connection and dispatch operation of power plant side energy storage system.

Qinghai's market-oriented grid connection project in 2021: 42.13GW new energy equipped with energy storage 5.2GW

On June 11, Qinghai Energy Bureau issued the Notice on Matters Related to the Development and Construction of Market-oriented Grid Connection Projects in 2021, which made it clear that the projects suitable for the market-oriented grid connection construction in Qinghai were mainly the integration of power, grid, load and storage and multi-energy complementary projects. According to the document, on this basis, considering factors such as the maturity of construction conditions, the possibility of load landing, the proportion of energy storage allocation and the comprehensive capability of enterprises, 20 key projects for the first market-oriented grid connection in 2021 were selected and subsequently implemented by the municipal Development and Reform Commission (Energy Bureau) to carry out dynamic management of key projects. The other projects which have high feasibility and good implementation can be timely updated into the list to rolling revise.

According to the document, for the projects that have implemented the conditions of market-oriented grid connection and have signed an agreement with the Qinghai Power Corporation, they should be put on record or approved according to the government approved investment project catalogue in accordance with the principle of "the approval following the report", and the validity period of photovoltaic and wind power projects should be defined. For projects without substantial construction of energy storage and adjustable supporting works within one year, the filing and approval documents shall be annulled, and losses shall be borne by the enterprises themselves. According to the list, Qinghai will focuses on promoting 20 first market-oriented grid connection projects in 2021, with a total power supply scale of 42.13GW and energy storage scale of about 5.2GW.

In terms of energy storage configuration, electrochemical energy storage is the mainstream configuration mode. Some projects also involve photothermal, electric mine card electrical changing station, compressed air energy storage and other forms. Among them, the proportion of energy storage in most projects is 10% and 2 hours. However, there are also high-proportion projects, such as the energy storage ratio of the project of Jingneng reached about 63%, and the energy storage ratio of the project of National Power Investment Corporation and China National Energy Construction Corporation reached about 30%.

In addition, of the above 20 projects, 12 projects are marked with specific load projects, most of which are in the form of clean heating, equipment manufacturing, data center, etc. In addition, Trina Solar Energy is the only private enterprise to enter the project list. It has jointly developed a 1GW complementary integration project of wind-polar storage + wind prevention and sand fixation with the National Energy Group.

Zhejiang Started the Third Party Independent Subject to Participate Electricity Ancillary Service

On May 20, Zhejiang Energy Regulatory Office issued the Transaction Rules for the Participation of the Third Party Independent Subject in the electricity ancillary service in Zhejiang Province (Trial) (Draft for Comment), which proposed to make full use of the multi-fusion and flexible power grid to promote the integration of "power, grid, load and storage". According to the principle of "who benefits, who assumes", fully excavate the third-party independent subjects including electric energy storage devices, electric vehicles (chargers), load-side control resources, load aggregators, virtual power plants, pumped storage power stations and others to participate in the electricity ancillary service, so as to improve the safe and stable operation level of Zhejiang power grid and promote the consumption of clean energy such as wind power, photovoltaic and nuclear power.

The third party independent subjects can participate in the market independently as the operating subjects, or participate in the market on behalf of the resources of the subordinate units through the way of aggregation. The power generation side energy storage devices can participate in the market independently or by their power generation enterprises as agents. Virtual power plants can aggregate different types of resources, and at the initial stage, the resources aggregated by the same unit should be of the same type in principle.

[Basic technical parameters of the third party independent subject] (I) When participating in the peak shaving ancillary service transaction, the adjusting capacity shall not be less than 2.5MWh, the adjusting power shall not be less than 5MW, and the continuous response time shall not be less than 1 hour; (II) When participating in the spinning reserve ancillary service, the adjusting capacity shall not be less than 1MWh, the adjusting power shall not be less than 1MW, and the continuous response time shall not be less than 1 hour; (III) When participating in frequency regulation ancillary services, the rated charging/discharging power shall not be less than 5MW and the continuous response time shall not be less than 2 hours.

[Ceiling Price] Price ceiling for ancillary services: During the low load period, peak cut will be RMB 400 / MW/h. During the peak load period, peak cut will be RMB 500 / MW/h. Peak cut and adjustment will be RMB 500 / MW/h, spinning reserve will be RMB 15 / MW/h, primary frequency regulation will be RMB 120 / MW/h, and secondary frequency regulation will be RMB 60 / MW/h, which will be adjusted timely according to market operation.

[Expense Sharing] The cost of ancillary services provided by the third party independent subject shall be apportioned between the power generation side and the market users, and shall be listed in the ancillary service cost of the settlement bill. Market users shall apportion the ancillary service fees according to the proportion of their actual electricity consumption to the total social electricity consumption in the current month and multiplied by the apportionment coefficient ku (temporarily 0.5). The remaining expenses shall be included in the power generation side, the apportionment shall be made according to the "Two Detailed Rules" in East China.

Source: https://zjb.nea.gov.cn/u/cms/www/202105/201114503vh0.pdf

China Southern Power Grid Issued a White Paper on New Power System Action Plan

On May 15, China Southern Power Grid released the white paper of action plan of China Southern Power Grid for the construction of new power system (2021-2030) (hereinafter referred to as "white paper") in Guangzhou, and held an expert seminar on digital grid to promote the construction of new power system. According to the white paper, China Southern Power Grid will accelerate the digital transformation, enhance the support capacity of digital technology platform and the operation capacity of digital power grid, select the regional power grid with a high proportion of new energy access, build the digital power grid to carry the leading demonstration area of new power system, and comprehensively build a safe, reliable, green, efficient and intelligent modern power grid. Build a new power system with renewable energy as the main source to ensure the security and stability of power grid and reliable power supply in the process of achieving the goal of carbon peak and carbon neutrality.

According to the white paper, during the "14th five year plan" and "15th five year plan", China Southern Power Grid will put into operation 5 million kilowatts and 15 million kilowatts of pumped storage respectively, and put into operation 20 million kilowatts of new energy storage respectively. It will vigorously promote the flexible transformation of thermal power, promote the expansion of hydropower stations with regulating capacity, reasonably arrange peak gas power, and improve the system regulating capacity.

In the future, more and more frequency regulation, peak shaving and emergency power supply will become products and enter the trading market. China Southern Power Grid is developing a trading mechanism to adapt to the participation of emerging market entities such as pumped storage, new energy storage and virtual power plants, designing flexible and diversified market demand response trading modes, and promoting the market construction of demand response in five southern provinces. Not only industrial users. China Southern Power Grid encourages all kinds of power market entities to tap peak shifting resources, and guides non-productive air conditioning loads, industrial loads, charging facilities, user side energy storage and other flexible loads to actively participate in demand response. By 2030, China Southern Power Grid will reduce its peak load by more than 5%.

Source: https://chuneng.bjx.com.cn/news/20210517/1152719.shtml

The Thermal Energy Storage Subsystem of The World's First 100MW Compressed Air Energy Storage Demonstration Project Began to Install

Recently, the thermal energy storage subsystem of the world’s first 100MW advanced compressed air energy storage demonstration project has begun to install, and all the work is progressing smoothly.

Zhangjiakou 100MW Advanced Compressed Air Energy Storage Demonstration Project is the first one in the world, with a construction scale of 100MW/400MWh and a system design efficiency of 70.4%. The project is located in Miaotan Cloud Computing Industrial Park, Zhangbei County, Zhangjiakou City, Hebei Province, covering an area of 85 mu. The project is invested by Zhangbei Giant Energy Co., Ltd. (Giant Group), and the full set of equipment is provided by China Energy Storage (Beijing) Technology Co., Ltd. The technology is supported by Institute of Engineering Thermophysics, Chinese Academy of Sciences. The construction contents of the project include one set of 100MW advanced compressed air energy storage demonstration system, one 220kV substation, and other supporting facilities such as comprehensive buildings, heating stations, roads, pipelines, etc. All the work is progressing smoothly.

Source: https://esresearch.com.cn

National Development and Reform Commission (NDRC) and National Energy Administration (NEA) Jointly Issue Statement on Widening the Peak and Off-peak Electricity Price Gap

On December 2, the National Development and Reform Commission and the National Energy Administration issued "Notice on Completing the Signing of Medium- and Long-term Electric Power Contracts in 2021”, which calls for widening of the electricity peak and off-peak price gap. The notice states that when two parties sign a time of use (TOU) contract, a peak and off-peak transaction price may be agreed upon, or a flat price can be determined by referring to the previous year’s average trading price, after which the peak and valley price will fluctuate based on the flat price.

The peak and off-peak price difference is an agreed clause of the electricity transaction contract between the purchaser and seller of electricity, implemented at both the power generation and consumption side to increase the peak and off-peak price difference. The notice also encourages power users to provide their own load curves and to sign medium and long-term power contracts, and encourages power selling companies and comprehensive energy service agencies to provide shorter period and more accurate load curves to help market players better participate in market transactions.

In addition to the announcement from the NEA and NDRC, on November 3, the Jiangsu Development and Reform Commission also released “Notice on Matters Concerning the T&D Electricity Prices and Electricity Sale Prices in the Jiangsu Power Grid from 2020 to 2022”. The notice proposes the further reduction of the off-peak price, widening of the price gap between peak and off-peak, making greater use of peak shifting, and encouraging the development of the energy storage industry.

National Energy Administration (NEA) Announces Approval of Seven Energy Storage Standards

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.