NDRC and the National Energy Administration of China Issued the New Energy Storage Development Plan During "14th Five-Year Plan" Period

On March 21, the National Development and Reform Commission (NDRC) and the National Energy Administration of China issued the New Energy Storage Development Plan During China’s "14th Five-Year Plan" Period. The plan specified development goals for new energy storage in China, by 2025, new energy storage technologies will step into a large-scale development period and meet the conditions for large-scale commercial applications. The performance of electrochemical energy storage technology will be further improved, and the system cost will be reduced by more than 30%. The new energy storage technology based on conventional power plants and compressed air energy storage technology (CAES) with a scale of hundreds of megawatts will realize engineering applications. Mechanical energy storage technologies such as megawatt-scale flywheel energy storage will gradually become mature, breakthroughs will be made in long-duration energy storage technologies such as hydrogen storage and thermal (cold) storage. By 2030, new energy storage technologies will develop in a market-oriented way.

The first batch of independent energy storage facilities in Shandong participates in electricity spot trading

On February 25, Shandong Power Exchange Center announced the information of the three independent energy storage facilities registered in February (as of February 21). As of February 25, the registration procedures for the batch of independent energy storage facilities in the Shandong Power Exchange Center have taken effect. The first batch of three independent energy storage stations include Tengyuan Energy Storage Station of China Huadian Corporation, Haiyang Energy Storage Station of State Power Investment Corporation, and Qingyun Energy Storage Station of China Three Gorges Corporation. At present, the three energy storage stations have become the first batch in the country to participate in the electricity spot market.

China Southern Power Grid issued the "14th Five-Year" Development Plan for Emerging Businesses

The "14th Five-Year" Development Plan for Emerging Businesses proposes that during the "14th Five-Year Plan" period, in promoting the realization of the carbon peaking and carbon neutrality goals and building a new power system based on new energy resources, the development of emerging businesses will usher in an important period of strategizing, upgrading and reforming. Taking energy storage sector as an example, during the "14th Five-Year Plan" period, the company will promote the construction of pumped storage hydropower stations orderly and explore to promote the construction and operation of new energy storage technologies. The installed capacity of peak and frequency regulation power supply will exceed 15 GW, and the scale of new energy storage technologies will reach 2GW.

Baoan Xin: Strive to increase electrochemical energy storage from 3 GW to 100 GW in 2030

On February 23, "People's Daily" published an article signed by Baoan Xin, CEO of State Grid Corporation of China. The article pointed out that in order to meet the requirements of developing energy storage and improve the adjustment capacity of the power system, we should strengthen the construction of well-developed pumped storage hydropower stations,  actively support the application of new energy storage technologies, and strive to increase the installed capacity of pumped storage hydropower stations from the current 26.3 GW to 100GW, and to increase the installed capacity of the electrochemical storage stations from 3 GW to 100 GW in 2030.

South China Energy Regulatory Office issued the “Notice on Strengthening the Supervision of the Development and Application of New Energy Storage Technologies”

On February 28, the notice required the energy authorities of Guangdong, Guangxi, and Hainan provinces to speed up the issuance of development plans for new energy storage technologies in these regions, support research on various energy storage technologies and control technologies, and fully consider the construction of energy storage demonstration projects with large-capacity, long-duration and comprehensive application, support new energy storage technologies to participate in the medium and long-term electricity market, spot market and ancillary service market as an independent market entity. Authorities should improve the compensation system of power supply side energy storage, support conventional power sources such as thermal power and new energy storage technologies to participate in auxiliary services together such as peak regulation, frequency regulation and reserve dispatch, improve the subsidies for energy storage allocated to renewable energy sources, and support grid-side energy storage stations to expand business models such as "shared energy storage" mode or direct participation in the electricity market, and support user-side energy storage to combine with high-load industrial demands, 5G base stations, charging networks, industrial parks and other load and other distribute power generators to form direct-controlled dispatchable “virtual power plants” or “integrated energy operators” to participate in electricity markets.

Local Government of Qinghai Province issued the “14th Five-Year Plan for Energy Development of Qinghai”

On February 28, the “14th Five-Year Plan for Energy Development of Qinghai” was issued which pointed out the key tasks of energy development, including actively developing applications of various new energy storage technologies such as electrochemical energy storage and compressed air energy storage. Relying on the resource advantages of salt lakes in Qinghai, it will actively promote the "new energy + energy storage" model, carry out pilot projects for compressed air energy storage and flywheel energy storage, explore the establishment of a shared energy storage operation mode, and promote the demonstration construction of GW-scale electrochemical energy storage on the supply-side, grid-side and user-side, and improve the short-term energy storage dispatch capacity of the power system. By 2025, 6 GW new energy storage such as electrochemical energy storage will be deployed.

Suzhou Industrial Park Administrative Committee issued "Several Measures for Further Promoting Distributed Photovoltaic Development in Suzhou Industrial Park"

According to the news on March 1, the document pointed out that the overall goal is to bring about an average annual increase of 70 MW of photovoltaic during the 14th Five-Year Plan period, support photovoltaic projects to deploy energy storage facilities. For energy storage projects connected to the grid and connected to the carbon peaking platform in the park after January 1, 2022, the project investor will be subsidized in 3-year term by 0.3 yuan/kWh according to its discharge contribution. Financial support will be increased, and there will have loan supports for distributed photovoltaic and energy storage projects, and eligible projects be supported by the special risk compensation “green intelligent manufacturing loan”.

Xinjiang Development and Reform Commission issued the "Guidelines for the Construction of Large-scale Wind Power and Photovoltaic Bases in the Autonomous Region (Version 1.0)"

On March 4th, in order to encourage all kinds of investors to make full use of desert areas to promote the construction of wind generation, photovoltaic generation and other new energy projects and achieve convenient, efficient service and effective management, Xinjiang Development and Reform Commission, formulated this guideline, defined 7 promotion roadmaps for the construction of new energy projects. Among these roadmaps, the energy storage promotion roadmap requires that enterprises deployed a duration of more than 4 hours energy storage are allowed to build wind and photovoltaic generation projects with a capacity of 4 times of energy storage, encourage photovoltaic generation and solar thermal generation to construct on a scale of 9:1, encourage wind farms that have been connected to the grid for more than 15 years to carry out renovating, upgrading and decommissioning plans which the new construction scale should be four times of scale of energy storage with more than 4 hours duration, and promote the improvement of quality, efficiency of the wind power industry .

The Ministry of Science and Technology of China issued a draft for the 2022 application guidelines for the key project of "Energy Storage and Smart Grid Technology"

The application guidelines are intended to focus on 7 directions and 26 guidance tasks: medium-duration and long-duration energy storage technology, short-duration and high-frequency energy storage technology, ultra-long-duration energy storage technology, active grid-support technology from high-penetration renewable energy, safe and efficient operation technology for ultra-large-scale AC-DC hybrid power grid, supply-demand interaction and energy efficiency enhancement technology for diversified energy consumers, fundamental grid-support technology. It involves nine energy storage sub-tasks, including manganese-based energy storage lithium-ion batteries with low-cost and long-life, organic energy storage batteries, aqueous metal-ion energy storage batteries, 100 MWh-scale sodium-ion battery energy storage technology, high-power lithium-ion batteries, high-power dual-ion energy storage batteries, 100MW advanced compressed air energy storage technology, new generation flow redox batteries, molten salt heat storage technology with wide liquid range and high temperature.

NDRC: Significance Progress Has Been Made in "Allowing for More Competition in Electricity Generation, Sales and Consumption" and Establishing A Market-based Electricity Price Mechanism

On October 12, the National Development and Reform Commission issued the "Notice on Further Deepening the Market-oriented Reform of Coal-fired Power Generation On-grid Electricity Prices". China will keep stable residential and agricultural electricity prices while orderly liberalizing the on-grid electricity prices for all coal-fired power generation. Expand the range of fluctuations in market transaction electricity prices, and encourage industrial and commercial users to enter the market. This reform has made important progress in "liberating the two ends", namely, the development of power-side on-grid tariffs and user-side sales tariffs, marking another important step in the reform of the electricity market.

The core of the reform is to truly establish a market-based electricity price mechanism that "can fall and rise flexibly". From the current point of view, the reform is conducive to further straightening out the relationship between "coal power" and ensuring the safe and stable supply of electricity; in the long run, it will accelerate the development of medium and long-term power transactions, the spot market and the auxiliary service market, and promote the high-quality development of the power industry. Supporting the construction of a new power system, serving the green and low-carbon transformation of energy, and will play an important role in accelerating the reform of power generation and consumption plans and the reform of the power sales side system.

Anhui Province: Construction of the First 100-megawatt Centralized Shared Energy Storage Station Started

On October 22, the 100MW/200MWh energy storage demonstration project in Jinzhai County, Lu'an City, Anhui Province officially started. The Jinzhai Energy Storage Demonstration Project is the first large-scale energy storage project jointly invested by Shanghai Electric Group, State Grid Comprehensive Energy Company, and China Energy Construction Anhui Electric Power Design Institute. This project aims to implement the national “dual carbon” goal and promote Energy transition and new power system construction.

According to the previous tender announcement, the energy storage power station is equipped with a total of 92 1.1MW/2.2MWh energy storage battery containers, and every 2 energy storage container units are divided and boosted by 4 630kW PCS and 1 2.8MVA. After 10kV, every 6 groups are connected to the low-voltage side of the 110kV booster station in the station via a 10kV collecting line and connected to the grid. A 110kV booster station and a 110kV line will be constructed as a supporting facility, and a 110kV outlet interval will be expanded in the 220kV Qiaodian Substation. On March 5, 2021, Shanghai Electric issued a corporate announcement that it plans to acquire Jinzhai Intelligent Storage New Energy Technology Co., Ltd. for 1 yuan in a joint venture with State Grid Integrated Energy Service Group and China Energy Construction Anhui Electric Power Design Institute and increase capital to jointly invest in the construction of 101.2MW /202.4MWh Anhui Jinzhai Power Grid Side Energy Storage Power Station Project! Shanghai Electric, State Grid Comprehensive Energy Service Group and China Energy Construction Anhui Institute will invest 0.51 yuan, 0.4 yuan and 0.09 yuan respectively for a total of 1 yuan to jointly acquire the equity of the project company Jinzhai Intelligent Reserve New Energy Technology Co., Ltd. and increase their capital in the same proportion. After the capital increase, Jinzhai Intelligent Reserve New Energy Technology Co., Ltd. has a registered capital of 140 million yuan, of which Shanghai Electric contributed 71.4 million yuan, holding 51% of its equity; State Grid Comprehensive Energy Group invested 56 million yuan, holding 40% of the shares, and China Energy Engineering Group Anhui Institute will invest 12.6 million yuan, holding 9% of the shares.

Rules of North China Electric Power's Peak Shaving: Energy Storage Give Priority to Meeting the Consumption of New Energy Plants and stations, Participates in Peak Shaving Alone at the Same Time

On October 20, the North China Regulatory Bureau of the National Energy Administration issued a notice on the "Rules on North China Electric Power Peak Shaving Capacity Market (Interim)". The document clearly stated: the initial stage of market operation, the grid side, the conventional power side, the user side and other energy storage projects It will not participate in the peak shaving capacity market for the time being. When conditions are met, the energy storage device will quote the volume and participate in the peak shaving capacity market.

In the chapter on cost settlement and apportionment, the document pointed out that for new energy power stations equipped with energy storage, the energy storage configured separately signed a grid-connected dispatch agreement to participate in the unified optimization of the Beijing-Tianjin-Tangshan power grid. The configured energy storage device gives priority to meeting the new energy consumption of the new energy power station itself. At the same time, the energy storage device should independently participate in the peak shaving market as a market entity, and obtain peak shaving costs in accordance with relevant rules. When calculating the market share of the peak shaving capacity cost, deduct its energy storage device to promote its own new energy power station to absorb electricity. Later, the apportionment method will be adjusted according to the market operation.