Interpretation of industrial and commercial energy storage

0. Preface

Industrial and commercial energy storage is one of the main types of user-side energy storage systems. It can maximize the self-use rate of photovoltaics, reduce the electricity bills of industrial and commercial owners, and help enterprises save energy and reduce emissions. Industrial and commercial energy storage mainly makes money through energy time shifting, peak-valley price difference arbitrage, capacity electricity fee reduction and demand response.

Under the background of the national " double carbon " goal and the industry trend of building a "new power system with new energy as the main body", various favorable policies have been introduced, which is gradually clarifying the status of industrial and commercial energy storage among market entities, enriching industrial and commercial Commercial profit channels for energy storage will accelerate the formation of industrial and commercial energy storage business models.

1. Favorable policies related to industrial and commercial energy storage in 2022-2023

1.1 January 4, 2022

The Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development, the Ministry of Transport, the Ministry of Agriculture and Rural Affairs, and the National Energy Administration jointly issued the "Smart Photovoltaic Industry Innovation and Development Action Plan (2021-2025)".

Develop intelligent optical storage systems. Make breakthroughs in key smart photovoltaic and storage technologies, stabilize photovoltaic power generation fluctuations, track power generation planned output and power time shifts, and improve support capabilities for new power systems. Promote the integrated development of photovoltaic power stations with pumped hydro energy storage, electrochemical energy storage, flywheel energy storage, etc., and build a number of power-side photovoltaic energy storage projects to ensure efficient consumption and utilization of photovoltaic power generation.

1.2 January 18, 2022

The State Council issued the "14th Five-Year Plan for the Development of Modern Comprehensive Transportation System" which clearly states:

Plan and build a convenient, efficient and moderately advanced charging and swapping network, focus on promoting the construction of charging facilities and equipment in transportation hub stations, parking facilities, highway service areas and other areas, and encourage the rational layout of photovoltaic power generation and power generation in transportation hub stations and along highways, railways, etc. Energy storage facilities.

1.3 February 10, 2022

The National Development and Reform Commission and the National Energy Administration jointly issued the "Opinions on Improving the Institutional Mechanisms and Policy Measures for Energy Green and Low-Carbon Transformation" which clearly states:

Expand the implementation scope of power demand response, tap various demand-side resources through various methods and organize them to participate in demand response, support user-side adjustable resources such as user-side energy storage, electric vehicle charging facilities, distributed power generation, as well as load aggregators, Virtual power plant operators, integrated energy service providers, etc. participate in power market transactions and system operation regulation.

Support emerging market entities such as energy storage and load aggregators to independently participate in power transactions. Improve electricity price policies that support energy storage applications. Give full play to the regulating role of solar thermal power generation, carry out research and demonstration of new energy storage projects such as abandoned mine transformation and energy storage, and gradually expand the application of new energy storage.

1.4 March 21, 2022

The National Development and Reform Commission and the National Energy Administration officially issued the "Implementation Plan for New Energy Storage Development during the 14th Five-Year Plan". The "Implementation Plan" points out the development goals of new energy storage. By 2025, new energy storage will move from the early stage of commercialization to the stage of large-scale development and meet the conditions for large-scale commercial application. The performance of electrochemical energy storage technology has been further improved, and system costs have been reduced by more than 30%. By 2030, new energy storage will be fully market-oriented.

1.5 March 22, 2022

The National Development and Reform Commission and the National Energy Administration issued the "14th Five-Year Plan for Modern Energy System Plan" which clearly states:

Accelerate the large-scale application of new energy storage technologies. Vigorously promote the development of power-side energy storage, rationally allocate the scale of energy storage, improve the output characteristics of new energy stations, and support the rational allocation of distributed new energy energy storage systems. Optimize the layout of grid-side energy storage and play multiple roles such as energy storage and consumption of new energy, peak shaving and valley filling, enhancing grid stability and emergency power supply. Actively support the diversified development of user-side energy storage, improve the reliability of user power supply, and encourage user-side energy storage such as electric vehicles and uninterruptible power supplies to participate in system peak and frequency regulation. Expand energy storage application scenarios, promote the diversified application of electrochemical energy storage, cascade power station energy storage, compressed air energy storage, flywheel energy storage and other technologies, and explore new models and new business formats such as energy storage aggregation and shared utilization.

1.6 March 29, 2022

The National Energy Administration issued the "Guiding Opinions on Energy Work in 2022" which clearly states:

Implement the "14th Five-Year Plan" new energy storage development implementation plan, track and evaluate the first batch of scientific and technological innovation (energy storage) pilot demonstration projects, implement pilot demonstrations around different technologies, application scenarios and key areas, and study the establishment of supporting energy storage construction for large-scale wind power and photovoltaic bases operating mechanism.

Improve time-of-use electricity prices and peak and valley electricity prices, support the diversified development of user-side energy storage, fully tap demand-side potential, and guide power users to participate in virtual power plants, peak shifting and valley filling, and demand response. Optimize and improve the main grid structure of the power grid, deploy grid-side energy storage at key nodes, and improve the level of inter-provincial power complementarity.

1.7 April 2, 2022

The National Energy Administration and the Ministry of Science and Technology issued the "14th Five-Year Plan for Scientific and Technological Innovation in the Energy Field". The "Plan" released five major technology roadmaps including advanced renewable energy power generation and comprehensive utilization technology, new power system and its supporting technology, and digital and intelligent energy system technology. Among them, the energy storage technology roadmap is also announced in the new power system technology roadmap. The “14th Five-Year Plan” energy storage technology innovation includes:

1. Energy/capacity energy storage technology equipment and system integration technology

2. Power/standby energy storage technology equipment and system integration technology

3. Common key technologies for energy storage batteries

4. Key technologies for large-scale variable speed pumped storage and seawater pumped storage

5. Distributed energy storage and distributed power supply collaborative aggregation technology

1.8 April 13, 2022

The Price and Cost Investigation Center of the National Development and Reform Commission issued "Improving the Energy Storage Cost Compensation Mechanism to Help Build a New Power System with New Energy as the Main Body" and proposed:

Focusing on the common problems faced by the energy storage industry such as poor cost management, and comprehensively considering factors such as the application characteristics of various energy storage technologies, their functional role in new power systems, and whether the services provided have public goods attributes, the study proposes relevant issues related to various types of storage technologies. A cost-guiding mechanism that is compatible with energy technology and can reflect its value and economic attributes will create a good policy environment for promoting the development of the energy storage industry, thereby guiding and increasing society's willingness to actively invest.

1.9 April 25, 2022

The official website of the National Development and Reform Commission announced the "Measures for the Management of Electricity Reliability (Interim)" which clearly states:

Actively and steadily promote the construction of energy storage on the power generation side, grid side and user side, reasonably determine the scale of construction, strengthen safety management, and promote the integration of source, grid, load and storage and multi-energy complementation. Establish a new energy storage construction demand release mechanism, fully consider the performance of various flexible adjustment resources in the system, allow various types of energy storage facilities to participate in system operation, and enhance the comprehensive adjustment capabilities of the power system.

1.10 May 25, 2022

The General Affairs Department of the National Energy Administration issued a notice on strengthening the safety management of electrochemical energy storage power stations. The notice attaches great importance to the safety management of electrochemical energy storage power stations, strengthens the safety management of electrochemical energy storage power station planning and design, does a good job in selecting electrochemical energy storage power station equipment, strictly enforces the construction acceptance of electrochemical energy storage power stations, and strictly enforces electrochemical energy storage power station construction acceptance. Specific measures are proposed for the safety of electrochemical energy storage power stations in seven aspects: grid connection acceptance, strengthening the operation and maintenance safety management of electrochemical energy storage power stations, and improving the emergency fire response capabilities of electrochemical energy storage power stations.

1.11 May 30, 2022

The General Office of the State Council forwarded the National Development and Reform Commission and the National Energy Administration's "Implementation Plan for Promoting High-Quality Development of New Energy in the New Era." The plan mentions 21 items to support the high-quality development of new energy.

We will improve the compensation mechanism for peak-loading and frequency-modulating power, increase the flexibility of coal power units, expand hydropower, pumped storage and solar thermal power generation projects, and promote the rapid development of new energy storage. Research the energy storage cost recovery mechanism. Encourage areas with good lighting conditions such as the west to use solar thermal power generation as peaking power supply.

1.12 June 1, 2022

The National Development and Reform Commission, the National Energy Administration, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Housing and Urban-Rural Development, the Ministry of Agriculture and Rural Affairs, the Meteorological Bureau, the Forestry and Grassland Administration and other departments jointly issued the "14th Five-Year Plan for Renewable Energy Development Plan".

In terms of new energy storage, it is proposed to promote the large-scale application of new energy storage. Clarify the independent market subject status of new energy storage, improve the trading mechanism and technical standards for energy storage to participate in various power markets, give full play to the multiple functions of energy storage such as peak and frequency regulation, emergency backup, and capacity support, and promote the application of energy storage on the power supply side, grid side and User-side multi-scenario applications. Innovate the energy storage development business model, clarify the energy storage price formation mechanism, and encourage energy storage to provide various regulating services for renewable energy power generation and power users. Innovate the collaborative operation model, promote the coordinated development of energy storage and renewable energy in an orderly manner, and improve the level of renewable energy consumption and utilization. (Full text of the “14th Five-Year Plan” Renewable Energy Development Plan)

1.13 June 7, 2022

The National Development and Reform Commission and the National Energy Administration issued the "Notice on Further Promoting New Energy Storage's Participation in the Electric Power Market and Dispatch Application". The notice pointed out that it is necessary to establish and improve the market mechanism to adapt to the participation of energy storage, encourage new energy storage to independently choose to participate in the power market, and adhere to the market-based We will formulate prices in a standardized way, continue to improve the dispatching operation mechanism, give full play to the advantages of energy storage technology, improve the overall utilization level of energy storage, ensure reasonable returns from energy storage, and promote the healthy development of the industry.

The document also clarifies: New energy storage can participate in the power market as independent energy storage; New energy stations and equipped energy storage are encouraged to jointly participate in the power market; Give full play to the advantages of independent energy storage technology to provide auxiliary services, and the relevant power generation side grid-connected entities, Power users should be reasonably apportioned; moderately widen the peak-to-valley price difference to create space for the development of user-side energy storage; establish a grid-side energy storage price mechanism, explore the inclusion of the cost benefits of grid-replacing energy storage facilities into transmission and distribution price recovery, etc. (Full text of policy)

1.14 August 1, 2022

The Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Ecology and Environment issued the "Implementation Plan for Carbon Peaking in the Industrial Sector."

Promote the development of the entire chain of hydrogen energy production, storage, transportation, sales and use. Encourage enterprises and parks to use clean energy nearby, and support qualified enterprises to carry out the construction of self-provided power plants and power sources such as "photovoltaic + energy storage".

Strengthen the coordination and interaction of sources, grids, loads and storage, guide enterprises and parks to accelerate the development and operation of integrated systems such as distributed photovoltaics, decentralized wind power, multiple energy storage, high-efficiency heat pumps, waste heat and pressure utilization, and smart energy management and control, and promote the efficient and complementary utilization of multiple energy sources. Promote large-scale and high-proportion consumption of renewable energy nearby. Strengthen energy system optimization and cascade utilization, and promote new business formats such as central heating and energy supply centers in parks according to local conditions. Accelerate the large-scale application of new energy storage.

1.15 August 18, 2022

Nine departments including the Ministry of Science and Technology issued the "Technology-Supported Carbon Peak and Carbon Neutrality Implementation Plan (2022-2030)".

Energy storage technology. Research and develop high-efficiency energy storage technologies such as compressed air energy storage, flywheel energy storage, liquid and solid lithium-ion battery energy storage, sodium-ion battery energy storage, and flow battery energy storage; research and development of new energy storage application technologies such as large-scale energy storage in cascade power stations and related Energy storage security technology.

Cutting edge energy storage technology. Research cutting-edge energy storage technologies such as solid-state lithium-ion and sodium-ion batteries that are lower cost, safer, longer life, higher energy efficiency, and not subject to resource constraints.

Establish a batch of "source-grid-load-storage-digital" integrated virtual power plants suitable for distributed energy.

1.16 August 25, 2022

Seven departments including the Ministry of Industry and Information Technology and the National Development and Reform Commission issued the "Action Plan for Green and Low-Carbon Development of the Information and Communications Industry (2022-2025)". The "Plan" points out that the use of lithium batteries will be promoted in an orderly manner, applications such as hydrogen fuel cells will be explored, and the integration and application of new energy storage technologies and power supply and distribution technologies will be promoted.

1.17 August 29, 2022

The Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Commerce, the State-owned Assets Supervision and Administration Commission of the State Council, and the State Administration for Market Regulation recently jointly issued the "Action Plan to Accelerate the Green and Low-carbon Innovative Development of Electric Power Equipment."

Promote the green and low-carbon development of power equipment in 10 fields including thermal power, hydropower, nuclear power, wind power, solar power, hydrogen energy, energy storage, transmission, distribution and electricity consumption.

In terms of energy storage equipment, it is proposed to greatly improve the reliability of electrochemical energy storage equipment, accelerate the development of compressed air energy storage and flywheel energy storage equipment, and develop multi-level fire safety protection technology and equipment for energy storage power stations. Research and develop online detection, status prediction and early warning technology and equipment for energy storage batteries and systems. Promote the application of 10MW-level supercapacitors, high-power lithium-ion batteries, and megawatt-level flywheel energy storage systems.

1.18 October 9, 2022

The National Energy Administration issued the "Action Plan to Improve Energy Carbon Peak and Carbon Neutrality Standardization". The document mentions: Accelerate the improvement of new energy storage technology standards.

Improve the new energy storage standard management system, combine the needs of new power system construction, and according to the needs of new energy power generation grid connection configuration and source grid load storage integration, and promptly establish a new energy storage project construction, production and operation process, as well as safety, environmental protection, and technical management standard system for professional and technical content.

Refine the types of energy storage power stations connected to the power grid and application scenarios, and improve the standards for safety design, testing and acceptance of connected power grid systems. Accelerate the development of mandatory national standards for new energy storage safety such as the safety of lithium batteries for energy storage and the safety of energy storage power stations.

Combined with the innovation of new energy storage technologies and the expansion of application scenarios, relevant standards should be formulated and revised in a timely manner to comprehensively promote the coordinated development of research and development, demonstration applications and standard formulation of various new energy storage technologies.

1.19 October 31, 2022

Nine departments including the State Administration for Market Regulation jointly issued the "Implementation Plan for Establishing and Improving the Carbon Peak and Carbon Neutral Standard Measurement System."

The plan mentioned that the formulation and revision of new power system standards should be accelerated. Focusing on building a new power system, we will carry out research on grid-side, power-side, and load-side standards, focus on promoting the formulation of smart grid and new energy storage standards, and gradually improve the standard system for the integration of source, grid, load and storage.

Focusing on new lithium-ion batteries, lead-carbon batteries, flow batteries, fuel cells, sodium-ion batteries, etc., we will develop and revise standards related to system and equipment inspection and monitoring, performance evaluation, safety management, and fire extinguishing.

Promote the development of physical energy storage systems and equipment standards such as flywheel energy storage, compressed air energy storage, superconducting energy storage, supercapacitors, and cascade power station energy storage.

Carry out the formulation and revision of standards for energy storage system access to the grid technology and grid-connected performance evaluation methods. Promote research on safety, operation and maintenance, and maintenance standards related to the joint operation of energy storage systems and energy storage and traditional power sources. Carry out standard research on the installation, commissioning, intelligent operation and maintenance of energy storage power stations.

1.20 November 7, 2022

The National Development and Reform Commission issued "Opinions on further improving the policy environment and increasing efforts to support the development of private investment."

The opinion pointed out that private investment is supported to participate in the construction of 102 major projects and other projects. Confirmed transportation, water conservancy and other projects should be accelerated and private investment should be treated equally in bidding. Encourage private enterprises to increase investment in energy conservation and carbon reduction fields such as solar power generation, wind power, biomass power generation, and energy storage.

1.21 November 18, 2022

The General Office of the Ministry of Industry and Information Technology and the General Office of the State Administration for Market Regulation jointly issued the "Notice on the Collaborative and Stable Development of the Lithium-ion Battery Industry Chain and Supply Chain." In order to ensure the coordination and stability of the lithium battery industry chain and supply chain, it is proposed:

Encourage lithium battery (cell and battery pack) manufacturing enterprises, lithium battery first-level material enterprises, lithium battery second-level material enterprises, lithium nickel cobalt and other upstream resource enterprises, lithium battery recycling enterprises, lithium battery terminal application enterprises and system integration, channel distribution, logistics and transportation, etc. Enterprises cooperate deeply and establish long-term mechanisms through signing long-term orders and technical cooperation to guide upstream and downstream to stabilize expectations, clarify quantity and price, ensure supply, and achieve win-win cooperation.

Market regulatory authorities in various regions have intensified supervision and strictly investigated and dealt with hoarding, price gouging, unfair competition and other behaviors in the lithium battery industry upstream and downstream to maintain market order.

1.22 November 25, 2022

The National Energy Administration solicits opinions on the "Basic Rules for the Electricity Spot Market (Draft for Comments)" and "Regulations on the Supervision of the Electricity Spot Market (Draft for Comments)". Among them, the "Basic Rules" propose to promote emerging market entities such as energy storage, distributed generation, load aggregators, virtual power plants and new energy microgrids to participate in transactions; the "Supervisory Measures" propose that energy storage, etc. be included in the dispatching jurisdiction of power dispatching agencies. market entities.

1.23 January 6, 2023

The Comprehensive Affairs Department of the National Energy Administration issued a public solicitation for the "Blue Book on the Development of New Power Systems (Draft for Comments)".

The "Blue Book" combines the requirements for new energy system construction and the "dual carbon" development strategy to study and judge the development trend of the power system, analyze the main challenges and problems faced by the existing power system, comprehensively elaborate on the development concept and connotation characteristics of the new power system, and judge the potential of the new power system. The development stages and salient features are summarized, and the overall structure and key tasks of building a new power system are proposed.

"Strengthening the construction of large-scale energy storage layout and application system" will be included in the overall new power system development key tasks.

1.24 January 10, 2023

The National Development and Reform Commission issued the "Notice of the General Office of the National Development and Reform Commission on Further Improving the Agency for Power Purchases by Power Grid Enterprises (NDRC Price [2022] No. 1047)". The document clearly states: On the basis of continuing to implement Document No. 809 and maintaining policy stability On the other hand, all localities should adapt to the development process of the local power market, encourage and support industrial and commercial users with 10 kV and above to directly participate in the power market, and gradually reduce the scope of agency power purchase users. It is beneficial to user-side energy storage.

1.25 January 17, 2023

Six departments including the Ministry of Industry and Information Technology issued the "Guiding Opinions on Promoting the Development of the Energy Electronics Industry."

The energy electronics industry mainly includes solar photovoltaics, new energy storage batteries, key terminal applications, key information technologies and products, and other fields.

In terms of new energy storage, it is proposed to develop safe and economical new energy storage batteries. Research breakthroughs in key technologies such as ultra-long-life and high-safety battery systems, large-scale, large-capacity and efficient energy storage, and mobile energy storage for vehicles, and accelerate the development of new batteries such as solid-state batteries, sodium-ion batteries, and hydrogen energy storage/fuel cells. Establish supporting energy storage systems for distributed photovoltaic clusters; accelerate the research and development of photovoltaic products and energy storage systems suitable for smart microgrids.

1.26 January 18, 2023

The National Energy Administration issued the "Key Points of Energy Supervision in 2023". Among them, the key points of new energy storage supervision work in 2023 include:

In terms of the power market mechanism: accelerate the construction of the ancillary services market, establish a special working mechanism for the power ancillary services market, study and formulate pricing methods for power ancillary services, establish and improve ancillary service sharing and sharing mechanisms with user participation, and promote the marketization of frequency modulation, backup and other varieties, Continuously guide new entities such as virtual power plants and new energy storage to participate in system adjustment. In terms of stabilizing the safe and stable operation of the system: explore and promote the collaborative governance of "source, network, load and storage".

1.27 February 3, 2023

Eight departments including the Ministry of Industry and Information Technology and the Ministry of Transport jointly issued the "Notice on Organizing and Carrying out Pilot Zone Pilot Work for the Comprehensive Electrification of Public Sector Vehicles." Clearly stated:

Support business model innovations such as power swapping, financial leasing, and separation of vehicle and electricity; accelerate the integrated pilot application of "optical storage, charging and discharging"; explore implementation paths for new energy vehicles to participate in the electricity spot market, and improve the green power trading mechanism for storage and discharge.

1.28 March 24, 2023

The National Energy Administration issued the "Twenty-Five Key Requirements for Preventing Electric Power Production Accidents (2023 Edition)". propose:

The site of the electrochemical energy storage power station on the power generation side and the grid side should not be adjacent to or located in a place where flammable and explosive dangerous goods are produced, stored, or operated. It should not be located in a place with dust or corrosive gases. It should not be located in a place with dust or corrosive gases. Within the protected area of ​​important overhead power lines.

Medium and large energy storage power stations should use batteries with mature technology and high safety performance, and carefully select echelon utilization power batteries.

The battery management system should have power protection functions such as overvoltage, undervoltage, differential pressure, and overcurrent, as well as non-power protection functions such as overtemperature and temperature difference. It should have cluster-level isolation control functions and be able to issue hierarchical alarm signals or trip commands to achieve on-site operation. Ground fault isolation.

A combustible gas detection device should be installed in the lithium iron phosphate battery equipment room. When the H2 or CO concentration is greater than the set threshold, the equipment room level and cluster level DC breaking equipment should be disconnected, and the accident ventilation system and alarm device should be started in a linkage manner.

1.29 March 31, 2023

The National Energy Administration issued "Several Opinions on Accelerating the Development of Energy Digitalization and Intelligence". Mentioned:

Accelerate the development of new energy microgrids and high-reliability digital power distribution systems, and improve the level of intelligent and efficient configuration and operation optimization control of user-side distributed power supplies and new energy storage resources.

Focusing on key areas, key links, and common needs, we will rely on energy engineering to explore and expand digital intelligent applications according to local conditions, and focus on promoting intelligent power plants, new energy and energy storage grid integration, intelligent inspection of transmission lines and disaster monitoring, intelligent substations, and self-healing. Demonstration projects are organized for application scenarios such as distribution network, intelligent microgrid, hydrogen-electricity coupling, distributed energy intelligent control, virtual power plant, comprehensive energy services, industry big data center and comprehensive service platform to undertake systematic digitalization and intelligent pilot tasks, and in technological innovation , operating models, development formats and other aspects of in-depth exploration and pilot testing.

1.30 April 24, 2023

The National Energy Administration issued a notice to publicly solicit opinions on the "Guiding Opinions on Strengthening the Stability of New Power Systems (Draft for Comment)" and proposed 27 items for the stable development of new power systems.

It proposes: Scientifically arrange energy storage construction. Build energy storage on demand, build pumped storage in an orderly manner, and actively promote the construction of new energy storage; scientifically configure diversified energy storage, give full play to electrochemical energy storage, compressed air energy storage, flywheel energy storage, hydrogen energy storage, heat (cold) ) energy storage and other new types of energy storage, explore new scenarios for the integration and development of energy storage, and improve the safety and security level of the power system and the overall efficiency of the system.

1.31 April 28, 2023

The National Energy Administration issued the "Measures for the Entry and Exit of Commercial Operation of Generator Units (Draft for Comment)", which proposes the conditions for entering commercial operation and the settlement method for the grid-connected electricity during the commissioning and operation period.

1.30 April 24, 2023

2. Analysis of the main profit channels of industrial and commercial energy storage

2.1 Energy time shift

According to the latest data from the National Energy Administration, the installed capacity of industrial and commercial photovoltaics in the first half of 2022 was 10.74GW, surpassing household photovoltaics for the first time and becoming a hot development direction of distributed photovoltaics. However, there is a spatio-temporal mismatch between the industrial and commercial photovoltaic power generation output curve and the load consumption curve. When the photovoltaic power generation exceeds the load consumption capacity, the excess power must be sold to the power grid company at a low price; when the photovoltaic power generation output is insufficient, industrial and commercial users They also have to purchase high-priced electric energy from the power grid, causing industrial and commercial users to still use part of the high-priced electric energy from the power grid even when installing photovoltaics, and the cost of electricity is not reduced to the maximum extent. Schematic diagram of energy time shift. The energy storage system is like a "reservoir". When the photovoltaic power generation output is large, it stores the electrical energy that cannot be used for self-use in the battery. When the photovoltaic power generation output is insufficient, it releases the electrical energy in the battery to the electric power. Load usage can achieve "peak shaving and valley filling" of photovoltaic power, maximize the proportion of self-consumption of photovoltaic power generation, maximize the reduction of electricity costs, and help enterprises reduce carbon emissions.

2.2 Peak and valley arbitrage

Peak and valley arbitrage my country's industrial and commercial industries generally implement time-of-use electricity price policies and peak electricity price policies. Taking Shenzhen as an example, Shenzhen's electricity price will increase during the peak period starting in 2022, and corresponding time periods have also been adjusted accordingly. The peak periods are 10-12 o'clock and 14-19 o'clock; the valley periods are 0-8 o'clock; the rest of the periods are flat periods. The peak-to-valley price ratio in Shenzhen is 1.53:1:0.32. The peak-to-valley price ratio in non-Shenzhen areas is 1.7:1:0.38. The peak-segment electricity price is implemented in the three full months of July, August and September, as well as in other months when the maximum temperature reaches 35°C and above. The execution period is 11-12 o'clock and 15-17 o'clock, a total of three hours. The peak electricity price is 25% higher than the peak electricity price of the above-mentioned peak and valley time-of-use electricity prices. Industrial and commercial energy storage systems purchase low-priced electricity from the power grid when electricity prices are at a trough and supply it to loads during peak or peak electricity prices, thereby reducing corporate electricity bills.

Schematic diagram of peak and valley arbitrage

2.3 Demand management

Demand Management my country adopts a two-part electricity price system for large industrial electricity consumption with a power receiving transformer capacity of 315 kVA and above. The two-part electricity price includes an electricity price and a capacity price. The electricity price is calculated based on the user's actual electricity consumption. The capacity price is calculated based on the user's actual electricity consumption. The electricity price can be calculated based on the fixed capacity of the transformer or based on the maximum demand of the transformer. The two electricity bills are calculated separately and then added together, which is the total electricity bill payable by the user.

Using the electricity cost calculation method of two-part electricity price, the power of industrial and commercial energy storage systems can replace the transformer capacity during the load peak, reducing the overall capacity demand of the transformer, thus reducing the cost of transformer expansion construction and the later fixed-capacity electricity charges or maximum Demand electricity charges. For old industrial and commercial scenarios where the power load capacity is insufficient and new charging piles are being built, the long cycle and high cost of transformer expansion can be avoided, and dynamic expansion can be achieved through the energy storage system.

2.4 Backup power supply

In applications where the backup power supply requires high grid continuity, the industrial and commercial energy storage system can be used as a backup power supply during a power outage. It can replace the function of the traditional UPS power supply and provide backup power supply for key uninterruptible power loads in the industrial and commercial park. Sudden power outages can save industrial and commercial owners part of the investment cost of UPS power equipment.

2.5 Electricity spot trading

The current power spot trading in the southern region has started trial operation, and it is expected that the national unified power market will also start operation soon. Relevant policies have made it clear that market entities such as energy storage will be introduced in a timely manner to participate in green power transactions. It should be noted that distributed energy storage systems are difficult to meet the buyer's demand for one-time call volume in the power trading market due to their small capacity. They can participate in power market transactions in an aggregated manner through virtual power plants (VPP).

2.6 Electrical ancillary services

Ancillary services in the power market refer to services provided by power generation companies, grid operating companies and power users in addition to normal power production, transmission and use in order to maintain the safe and stable operation of the power system and ensure power quality.

Types of power ancillary services The southern regional power market will be launched on July 23, 2022, and the varieties and compensation mechanisms of the ancillary services market will be clarified and further improved. Ancillary services will also become an important part of the power market transactions, and industrial and commercial energy storage can also serve as a new profit channel by providing ancillary services in the power market.

3. Prospects for industrial and commercial energy storage

Under the policy of widening the peak-to-valley price difference and adding peak electricity prices in various regions across the country, the economics of installing energy storage for industrial and commercial users has been significantly enhanced. In the future, with the accelerated construction of a unified national power market and the mature application of virtual power plant technology, spot trading of electricity and auxiliary power services will also become profit channels for industrial and commercial energy storage. As the cost of energy storage batteries decreases, the investment cost of energy storage systems will inevitably become more optimized, and the potential of the industrial and commercial energy storage market will be further stimulated. Industrial and commercial energy storage is expected to become a new outlet after industrial and commercial photovoltaics.

Continually updated…