What problems need to be solved when new energy storage "enters the market" in various places?

New energy storage is an important equipment foundation and key support technology for building a new power system and promoting the green and low-carbon transformation of energy, and is also important support for achieving the goal of "double carbon". In June this year, the National Development and Reform Commission and the National Energy Administration issued the Notice on Further Promoting the Participation of New Energy Storage in the Electricity Market and Dispatch and Application (hereinafter referred to as the Notice), which clarifies that new energy storage can participate in the electricity market as independent energy storage and deploys mechanisms such as market, price, and operation after its "entry into the market", aiming to promote the healthy development of the new energy storage industry.

In less than a month, Guangxi took the lead in promoting the implementation of the Notice. The Development and Reform Commission of Guangxi Zhuang Autonomous Region recently issued the "Work Plan for Promoting the Participation of New Energy Storage in the Electricity Market and Dispatch and Application (Draft for Solicitation of Comments)" (hereinafter referred to as the "Work Plan"), which determines the six major tasks for promoting the use of new energy storage and proposes to complete the rules such as market access, planning, and construction grid-connected requirements, and the construction of dispatching and operation mechanisms before the end of this year, so as to create conditions for new energy storage to participate in the electricity market and dispatch and use.

The reporter noted that as the first provincial-level plan in China, the "Work Plan" and the "Notice" have different expressions in "market access". The Notice clarifies that new energy storage projects that are encouraged to exist in the form of allocation and construction may choose to be converted into independent energy storage projects and participate in the electricity market as independent entities; The "Work Plan" requires that the energy storage and the power supply of the new energy allocation are jointly accessed, and the energy storage and the affiliated integrated projects in the multi-energy complementary integration are jointly accessed.

One is the top-level "road map", and the other is the local "construction drawing", does the operation in Guangxi mean that the local government has a "steering deviation" in the process of landing the "Notice"? What problems need to be solved when new energy storage "enters the market" in various places?

The top-level design refers to the stubborn disease, and the local plan is refined and landed

Energy storage has multiple values, but the development of the industry is facing an embarrassing situation of profitability, and a large number of enterprises that "lose money and make money" exist. "Based on the cost of the energy storage system of 1800 yuan / kWh in 2021, the energy storage power station is charged and discharged twice, and the average price difference between charge and discharge is more than 0.7 yuan / kWh, and it will take at least 10 years to recover the cost." Yu Zhenhua, executive vice president of the Zhongguancun Energy Storage Industry Technology Alliance, said frankly that at present, 22 provinces and regions across the country have issued policies to encourage or force new energy with energy storage, and the allocation ratio is between 5% and 20%. "However, under the pressure of new energy parity, the mandatory allocation of energy storage in a fixed proportion increases the fixed cost of new energy, and the cost lacks a way to recover."

"Without power curtailment and regulation needs, the grid is difficult to dispatch." In the view of Zheng Hua, associate professor of the School of Electrical and Electronic Engineering of North China Electric Power University, the fundamental problem of new energy storage is that the uncertainty of cost and benefit and the existing mechanism have caused the investment environment to deteriorate, which in turn has led to the construction of energy storage facilities without problems.

In order to solve the above problems, the National Development and Reform Commission and the National Energy Administration issued the Notice on June 7, which clarifies that the new energy storage can participate in the electricity market as independent energy storage, and if the independent energy storage power station transmits electricity to the power grid, its corresponding charging power does not bear the transmission and distribution price and government funds and surcharges. This move is regarded by the industry as an important policy to accelerate the marketization of new energy storage.

"Guangxi's Work Plan further clarifies whether user-side energy storage is independent, which is not specified in the Notice, that is, user-side energy storage can have an independent identity and participate in electricity market transactions." Zheng Hua said.

Li Zhen, deputy secretary-general of the Zhongguancun Energy Storage Industry Technology Alliance, told reporters that the highlight of the "Work Plan" is to determine the specific tasks to promote the use of new energy storage, clarify the task leader, and promote the plan and time node. "This is a specific refinement of the top-level design, which has guiding significance for the application of new energy storage in Guangxi."

The implementation level is difficult, and the operation of various places needs to be adapted to local conditions

What is the significance of directly participating in the electricity market and dispatching and operating as an independent entity?

The reporter learned that the willingness to convert the new energy storage in the form of allocation to independent energy storage is relatively strong. "Independent energy storage can solve the problems of settlement difficulties and low utilization rate caused by the current stock of new energy storage without the identity of independent market entities." Chen Chao, marketing director of Xiamen Kehua Digital Energy Technology, said.

However, as the first local document, Guangxi's "Work Plan" has some differences in expression: independent energy storage (grid side, user side) can be directly accessed, and the relevant policies for energy storage to participate in market-oriented transactions can be implemented. The energy storage of new energy distribution and the power supply projects of the new energy are jointly admitted, and the relevant policies of new energy participation in market-oriented transactions are implemented. Energy storage and affiliated integrated projects in the multi-energy complementary integration projects of wind, photovoltaic, water, and fire storage are jointly admitted. "This means that in the future, the integration projects in Guangxi and the energy storage in new energy power stations will not have the possibility of independent participation in the electricity market." Zheng Hua pointed out that the energy storage projects that can be converted into independent energy storage mainly involve non-independent new energy storage enterprises on the source side and the load side, such as new energy + energy storage, thermal power + energy storage, etc., but the implementation level is very difficult.

Zheng Hua explained that the new energy storage in new energy and integration projects has actually clarified the scope of value and role at the filing stage, and has enjoyed the corresponding convenience and clarified the cost-benefit mechanism. "Due to the diversification of scenarios, the problems involved are not simple mode conversion, but 'changes' to the market operation and regulation operation system, involving land costs, transmission line fees, accident responsibility subjects, grid-connected performance rights and responsibilities, external regulation and operation mode, etc., and the complexity can be imagined." The joint access mechanism is appropriate and in line with current realities. ”

"At present, it is impossible to simply evaluate which model is better, and independent energy storage or joint participation in the electricity market should be combined with specific analysis of the application environment." Simple conversion, if the access metering, improper connection of the market, will cause confusion. Li Zhen believes that the national top-level design is macro guidance, providing a variety of possibilities, specific to the local must be adapted to local conditions.

Returning to the market is the only way Supporting measures need to be improved urgently

The cost of energy storage should eventually pass through the electricity market. "The participation of new energy storage in the electricity market is the only way, which is determined by the fundamental needs of the development of the new power system, and the Notice and work plan are only parts of a series of policies and a solid step in the right direction." Zheng Hua pointed out that in order to return the new energy storage to the market and use the "hand of the market" to solve the problems of unbalanced demand, mismatch between supply and demand, and unclear costs and returns, the government must establish an effective, fair, just and open market mechanism and system, and obtain prices through free trade.

"If there is no demand and application scenario, energy storage will become a sunken asset." Li Zhen said that the identity positioning of the new energy storage in the electricity market was not clear enough, mainly participating in the auxiliary service market such as peak shaving and frequency regulation, and the rules for participating in the access standards, transactions, settlements and other rules of the medium- and long-term trading and spot transactions markets were not clear. With the further liberalization of the policy, it is clear that the new energy storage can participate in the electricity market as an independent entity, and in the design of the system, it is necessary to fully consider the advantages of the new energy storage with high regulation performance and fast response speed, and give full play to its value in terms of energy and capacity; On the other hand, it is necessary to establish a scientific transportation mechanism and strengthen supervision to ensure that energy storage power stations invested by socialized capital are fairly dispatched, have equal rights and interests and considerable utilization rates.

Industry experts remind us that the new energy storage is an important part of the new power system, but not all, it is necessary to coordinate the coordinated development relationship between the new energy storage and other power sources or market players, can not expand its value and role, but also can not be "deified", not to mention that there are still many problems to be solved.

"In addition, the participation of new energy storage in the electricity market is not only a matter of price mechanism, but also involves the access mechanism of the electric energy market, the power auxiliary service market, the electricity price mechanism, the trading mechanism, and the connection mechanism between different markets, as well as the influence of market players, the revenue model and other core issues, and there must be a set of new energy storage to meet the needs of China's new power system to participate in the relevant strategies, supporting measures and the construction of the connection mechanism of the electricity market." Zheng Hua pointed out that it is necessary to conduct in-depth research and gradually demonstrate the application, that is, it cannot be "one-size-fits-all", nor can it be delayed, and it is necessary to give full play to the ability to innovate.