Energy storage industry and field mechanism

How to develop China's energy storage industry?

Finally, in line with the development expectations of China’s future electricity market, suggestions are proposed from four aspects: Market environment construction, electricity price formation mechanism, cost sharing path, and policy subsidy mechanism, to promote the healthy and rapid development of China’s energy storage industry. 1. Introduction

Are market mechanisms conducive to cost-sharing of energy storage?

However, the current market mechanisms are not conducive to the proper cost-sharing of energy storage and are difficult to support the large-scale investment and operation of future new energy storage projects in China.

Why are energy storage technologies important?

Energy storage technologies have been recognized as an important component of future power systems due to their capacity for enhancing the electricity grid's flexibility, reliability, and efficiency. They are accepted as a key answer to numerous challenges facing power markets, including decarbonization, price volatility, and supply security.

How does energy storage work in the UK?

The revenue of energy storage in the UK front-of-the-meter market mainly comes from independent energy storage or energy storage jointly participating in the capacity market to obtain frequency regulation benefits, and the contribution of the energy market to energy storage cost alleviation is relatively small.

Does energy storage have a frequency regulation mechanism?

The existing mechanism allows energy storage to declare charging and discharging quantities and selling prices in the market, and the market can spontaneously guide energy storage to realize its own frequency regulation value.

What is the external value of energy storage in China?

For China’s most widely used dual-pricing system, the external value of energy storage in the market can be regarded as reflecting and radiating value through the electricity market and capacity market, where the capacity market includes some functions of the ancillary services market.