Liu Yafang, Deputy Director of the Science and Technology Department of the National Energy Administration: New energy storage has become an indispensable supporting facility for the safe, stable, and economic operation of the power system

China Energy Storage Network News: New energy storage is an important technology and infrastructure for building a new power system, promoting green and low-carbon energy transformation, and also an important support for achieving the "dual carbon" goal. In January and May of this year, the National Development and Reform Commission and the National Energy Administration issued the "Implementation Plan for the Development of New Energy Storage during the 14th Five Year Plan" and the "Notice on Further Promoting the Participation of New Energy Storage in the Electricity Market and Dispatching Application", making important arrangements for promoting the large-scale, industrialized, and market-oriented development of new energy storage. This issue invites experts to discuss the development of new energy storage.
Host: Xu Xiangmei, Director of the Theory Department and Researcher of this newspaper
Continuous R&D and innovation of new energy storage technologies
Host: What is a new type of energy storage? What is the current situation of the development of new energy storage in China?
Liu Yafang (Deputy Director of the Science and Technology Department of the National Energy Administration): The report of the 20th National Congress of the Communist Party of China clearly proposes to accelerate the green transformation of development methods, steadily promote carbon peak and carbon neutrality, deepen the energy revolution, and accelerate the planning and construction of a new energy system. To implement the spirit of the 20th National Congress of the Communist Party of China, accelerate the development of renewable energy, especially wind and solar power generation, optimize China's energy structure, reduce the proportion of fossil energy consumption, and develop energy storage technology has become an important task that we need to continue to exert efforts.
Energy storage technology can achieve spatiotemporal transfer and transformation of energy. Energy storage technology can be generally divided into two categories: physical energy storage and chemical energy storage. Physical energy storage mainly includes pumped storage, compressed air, flywheel energy storage, gravity energy storage, phase change energy storage, etc; Chemical energy storage mainly includes lithium-ion batteries, alum flow batteries, iron chromium flow batteries, sodium ion batteries, and hydrogen (ammonia) energy storage. New type of energy storage refers to energy storage mainly in the form of output electricity, in addition to pumped storage. Compared with pumped storage, new energy storage has flexible site selection, short construction cycle, fast and flexible response, and diverse functional characteristics. It is increasingly widely embedded in various links of power system sources, networks, and loads, profoundly changing the operational characteristics of traditional power systems and becoming an indispensable supporting facility for safe, stable, and economic operation of power systems. In the future, it will also overturn the development structure and operation pattern of energy power systems.
New energy storage can change the traditional operation mode of the power system that is ready to use, improve the flexibility and regulation ability of the system. It is not only a key support for promoting the development and consumption of intermittent, fluctuating, and random renewable energy such as wind and solar energy, achieving carbon peak and carbon neutrality goals, but also an important technology and infrastructure for building a new power system, building a new energy system, promoting energy transformation and high-quality development. The development of new energy storage technologies will also give birth to new energy industries and formats, which have become an important field for countries around the world to seize new heights in energy strategies and equipment manufacturing. According to incomplete statistics, as of the end of 2021, approximately 200 million kilowatts of energy storage have been put into operation globally, a year-on-year increase of 9%. Among them, the cumulative installed capacity of new energy storage is about 25 million kilowatts, a year-on-year increase of about 68%, and its proportion in all energy storage installations has increased from 8% to 12%. From a regional perspective, the cumulative installed capacity of new energy storage in the United States has reached 6.5 million kilowatts, ranking first in the world in terms of total scale. Multiple large-scale projects with a capacity of over 400000 kilowatts have been completed.
China attaches great importance to the development of the new energy storage technology industry. According to data reported by various provinces, as of the end of 2021, the cumulative installed capacity of new energy storage projects in China has exceeded 4 million kilowatts. It is expected that by the end of 2022, the installed capacity of new energy storage in China may exceed 6 million kilowatts. In accordance with the decisions and arrangements of the Central Committee of the Communist Party of China, in recent years, The National Energy Administration, together with relevant departments, has successively issued the "Guiding Opinions on Promoting the Development of Energy Storage Technology and Industry", "Guiding Opinions on Accelerating the Development of New Energy Storage", "Implementation Plan for New Energy Storage Development during the 14th Five Year Plan", "Management Standards for New Energy Storage Projects (Provisional)", "Implementation Plan for Strengthening Energy Storage Standardization Work", and "Notice on Further Promoting the Participation of New Energy Storage in the Electricity Market and Dispatching Application" Through a series of policy documents, we will improve top-level design, carry out innovative demonstrations, strengthen overall evaluation, adapt to local conditions, encourage scientific deployment, vigorously strengthen industry management, and promote the significant increase in the scale of new energy storage installations year after year. These features include diversified technological development, rapid progress in performance indicators, continuous decline in construction costs, and diverse and diverse application scenarios.
The performance indicators of various new energy storage technologies are constantly improving, and safety prevention and control technologies and measures are gradually improving. The energy density of lithium-ion batteries for energy storage has more than doubled compared to ten years ago, forming a relatively complete industrial chain; Key materials such as separators and electrolytes for all vanadium flow batteries have been domestically produced; The development of compressed air energy storage technology is rapid, and large-scale compressed air energy storage demonstration projects constructed in Zhangbei, Jintan, and other places have been gradually connected to the grid this year; Flywheel energy storage technology has broken through the key technologies of large capacity flywheels and high-speed motors, completing the design of prototype schemes and the development of key components; As the next generation of energy storage technology, sodium ion batteries have the characteristics of low cost and abundant raw materials. At present, various new energy storage technology innovations and engineering demonstrations are very active.
During the 14th Five Year Plan period, China will continue to adhere to innovation leading and diversified development, emphasizing market leadership and safety, encouraging innovation demonstration, leading the way, and actively promoting innovation in new energy storage technologies. At the same time, based on the actual needs of the new power system, with the aim of improving the stability of end-users' electricity consumption, enhancing the stability and technological economy of the power system, adapting measures to local conditions, gradually respecting market entities, and promoting the application of new energy storage systems and high-quality development. It is expected that by the end of 2025, the installed capacity of new energy storage in the power system will reach over 30 million kilowatts, with an average annual growth of over 50%, effectively supporting the construction of a clean, low-carbon, and safe energy system.
Improving operational mechanisms to participate in electricity market competition
Host: How is the participation and dispatch of new energy storage in the electricity market in China? How to further promote the participation of new energy storage standards in the electricity market?
Pei Zheyi (former deputy chief engineer and professor level senior engineer of the National Power Dispatching and Control Center): As of the end of 2021, the State Grid Corporation of China's operating area is operating 2.23 million kilowatts/49.4 million kilowatt hours of electrochemical energy storage power stations. At present, there are 20 provinces with energy storage projects, distributed in North China, East China, and Northwest China. Provinces with operating capacity of over 100000 kilowatts include Shandong (544000 kilowatts/108800 kilowatt hours), Jiangsu (371000 kilowatts/154000 kilowatt hours), Qinghai (360000 kilowatts/500000 kilowatt hours), Anhui (198000 kilowatts/22000 kilowatt hours), Hunan (130000 kilowatts/26000 kilowatt hours), and Henan (120000 kilowatts/160000 kilowatt hours).
State Grid Corporation of China has established a management system that covers all processes of energy storage and dispatch, and has carried out a lot of work in grid connection management, operation management, dispatch technology, and other aspects of energy storage, laying a good foundation for the operation of energy storage.
In terms of grid connection management, we have improved the technical standards for grid connection and issued the "Technical Regulations for the Integration of Electrochemical Energy Storage Systems into Power Systems", clarifying the technical requirements for rated power and energy, primary frequency regulation, high and low voltage crossing of energy storage stations, and improving the stable utilization level of energy storage; We have improved our grid connection testing capabilities, organized the establishment of a testing and testing platform for energy storage equipment and grid connection processes, and obtained relevant national qualifications. We have the ability to provide full chain testing and certification covering everything from battery energy storage core components to energy storage systems, promoting rapid progress in grid connection technology.
In terms of scheduling and operation, ensure compliance with regulations and organize the signing of grid connection scheduling agreements in accordance with the "Demonstration Text of Grid Connection Scheduling Agreement for Electrochemical Energy Storage Power Stations (Trial)"; Improve the energy storage scheduling management system, formulate the "Regulations on the Operation and Management of Electrochemical Energy Storage Scheduling", and clarify the requirements for grid connection, operation, and maintenance; Promote the inclusion of energy storage power stations in the "two detailed rules" assessment, reward the good and punish the bad, and promote the improvement of the operational level of energy storage power stations.
In terms of scheduling technical support system, State Grid Corporation of China has piloted the coordination and control of energy storage at the provincial, city, and county levels, to coordinate and achieve the differential demand for energy storage in various levels of power grids. The provincial dispatching control energy storage meets the peak shaving and power supply needs of the province, and the energy storage under the jurisdiction of the city dispatching and county dispatching meets the needs of regional power flow control and equipment overload prevention. In addition, an energy storage and scheduling technology support system has been established, achieving the sharing of three-level scheduling operation control information, and developing collaborative control strategies.
The initial formation of market application scenarios and business models for energy storage participation.   In the spot market, independent energy storage participates through the "volume quotation" method, forming a charging and discharging plan after clearing in the day ahead market. It operates according to the day ahead plan and settles according to the node electricity price to obtain the profit of spot peak valley price difference.
In terms of the auxiliary service market, similar to the spot market, in areas without a spot market, scheduling agencies release the demand curve of the 96 point peak shaving market and trading electricity constraints on the next day, and independently store energy to declare the 96 point peak shaving volume price curve in the system. The dispatch agency takes every 15 minutes as a period for electricity clearing, and conducts market clearing based on the compensation price declared for independent energy storage peak shaving from low to high, until the market demand for electricity peak shaving is met or all resources declared for independent energy storage have been fully utilized. The next day, independent energy storage will be executed according to the market clearance results before the day. Participate in power system frequency regulation and participate in system frequency regulation auxiliary services according to the instructions of the dispatch agency. Currently, more than 10 provinces have introduced market rules for energy storage participation in auxiliary services.
At present, the operating mechanism of the energy storage power station market is not yet perfect, making it difficult to effectively motivate market entities to participate, thereby affecting the level of energy storage utilization.
Firstly, from the current operating situation, the failure rate of energy storage power plants is relatively high, which affects the operation of energy storage scheduling. Most places have not yet introduced operational management measures for energy storage, and the relevant operational assessment and reward mechanisms are not yet perfect. In the management measures that have been introduced, the assessment and rewards for energy storage are relatively weak, and are not linked to the assessment of the electricity consumption of its supporting new energy power stations, making it difficult to effectively urge energy storage power stations to strengthen their own operational management. According to statistics from relevant departments, from January to August 2022, there were 329 unplanned shutdowns of electrochemical energy storage projects nationwide. The safety standards and management norms for electrochemical energy storage need to be further improved.
Secondly, various regions have formulated different market entry conditions and registration rules based on their own grid characteristics and energy storage development needs, taking into account the energy storage policies introduced by the state. However, there is a lack of unified standards and further standardization and improvement are needed to ensure the participation of energy storage companies in market operations.
*Later, provinces have not yet formed a unified and standardized model for energy storage participation in the electricity market, and there are significant differences in the market models and transaction rules required for energy storage market entities to participate. Most provinces' capacity compensation mechanisms are still under research and development, lacking a unified, equal, and stable energy storage capacity recovery mechanism.
Therefore, efforts can be made from the following aspects. One is to strengthen the management of energy storage and grid connection operation. Promote the establishment of an evaluation and assessment mechanism for the operational effectiveness of energy storage power stations, include them in the assessment scope of the "Two Detailed Rules", and participate in the assessment together with new energy allocation and construction of energy storage and new energy power stations to improve the safe and stable operation level of energy storage power stations. Accelerate the formulation and revision of standards for energy storage access to the power grid and scheduling operations, strengthen grid connection testing management, and establish and improve the fire acceptance and filing mechanism for energy storage power stations as soon as possible. Establish a coordinated operation mechanism of "unified scheduling and shared use", optimize the control strategy for grid connected operation of energy storage power stations, and improve the efficiency of energy storage utilization.
The second is to refine and unify the access conditions for the energy storage market. Implement the requirements of the National Notice on Further Promoting the Participation of New Energy Storage in the Electricity Market and Dispatching Application, establish a standardized and convenient registration process, and clarify and refine the market positioning, admission conditions, registration procedures, and registration information of energy storage. Promote the transformation of new energy distribution and storage into independent energy storage or participate in the electricity market as a consortium with new energy stations, enhancing the flexibility and profitability of energy storage in the electricity market.
The third is to improve market mechanisms and varieties. Guide each province to organize energy storage to participate in mid to long term market, spot market, and auxiliary service market transactions based on actual needs, and expand the subdivision categories of existing transaction varieties. According to the principles of fair treatment, same network, same quality, and same price, gradually open up corresponding trading varieties to energy storage, allow energy storage enterprises to flexibly choose to participate in different markets, and scientifically guide the construction and operation of energy storage projects. In areas where the electricity spot market operates, new energy storage enterprises can be allowed to flexibly choose from one charging and one discharging, two charging and two discharging, or even multi charging and multi discharging operation modes, giving energy storage enterprises more flexible and independent decision-making rights. Based on the needs of energy storage operations, new energy storage companies or power users are allowed to sign segmented long-term contracts with curves, guiding them to enrich their business strategies. Encourage energy storage to participate in auxiliary service markets such as frequency regulation, explore the establishment of dynamic pricing mechanisms, and fully stimulate the rapid response performance of energy storage.
Accelerated promotion of application scenarios and business models
Host: What are the prospects for new energy storage applications? What are the practical experiences and achievements of the pilot demonstration of new energy storage in key regions?
Dai Jianfeng (Deputy Chief Engineer of Electric Power Planning and Design Institute): New energy storage is an important technology and basic equipment for building a new power system, and also an important support for achieving carbon peak and carbon neutrality goals. The new energy storage application scenarios are diverse, and can be integrated and developed with various links such as power system sources, grids, and loads. On the power supply side, it can be optimized and operated in collaboration with new energy and conventional power sources. On the power grid side, it can improve the level of power safety assurance and system comprehensive efficiency, and on the user side, it can be flexibly and flexibly applied.
Power side application scenarios. One is a system friendly new energy power station. In areas with abundant new energy resources and other areas with high penetration rates of new energy, through the rational allocation of new energy and new energy storage, we will layout and build system friendly new energy power stations. The second is to support the export of a high proportion of renewable energy bases. Relying on the existing and newly added cross provincial and cross regional transmission channels, in conjunction with large-scale wind and photovoltaic bases in deserts, Gobi, deserts, and other regions, as well as the development of large-scale offshore wind power bases, we will promote the large-scale cross provincial transmission and consumption of new energy through the "integration of wind, solar, water, fire, and storage" multi energy complementary model. The third is to improve the regulation ability of conventional power sources. By reasonably configuring new types of energy storage through coal-fired power and utilizing technologies such as steam extraction and energy storage, operational characteristics and overall benefits can be improved.
Application scenarios on the power grid side. One is to improve the safe and stable operation level of the power grid. Reasonable layout of new energy storage at key power grid nodes is an important measure to enhance the system's ability to withstand unexpected events and recover from faults. The second is to enhance the power supply guarantee capability in weak areas of the power grid. Reasonably layout new types of energy storage in remote areas with insufficient power supply capacity to improve power supply guarantee capabilities. The third is to delay and replace investment in power transmission and transformation facilities. Building new energy storage on the grid side in areas with scarce transmission corridor resources and substation site resources, delaying or replacing the upgrading and renovation of transmission and transformation facilities, and reducing the comprehensive construction cost of grid infrastructure. The fourth is to enhance the system's emergency support capability. Build a batch of mobile or fixed new energy storage systems as emergency backup power sources around important power users to improve the level of emergency power supply guarantee for the system.
User side application scenarios. One is a distributed energy supply system. Relying on distributed new energy, microgrids, incremental distribution networks, etc. to configure new energy storage and support the construction of distributed energy supply systems. The second is to provide customized energy use services. Configure new types of energy storage for power users who require high power consumption and high power supply stability and quality to support high-quality electricity consumption. The third is to enhance users' flexible adjustment ability. By utilizing user side energy storage, as well as charging and swapping facilities, smart electricity facilities, etc., we aim to enhance users' flexible adjustment capabilities and intelligent electricity consumption levels.
New energy storage has different business models in different application scenarios, including obtaining single or multiple benefits through new energy cost diversion, participation in the electricity spot market, participation in auxiliary services, capacity leasing, peak valley price difference arbitrage, etc. In addition, research is underway to establish an independent energy storage power station capacity electricity pricing machine on the grid side