Mengxi energy storage electricity price 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

How to marketize energy storage transactions?

As the capacity market mechanism matures, it is advisable to gradually promote the marketization of energy storage transactions. Through market competition, capacity compensation prices can be formed, and ultimately, these costs can be distributed among all users through transmission and distribution tariffs. 5. Conclusion

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.

Does China have a mature electricity market mechanism?

As of now, China has not yet developed a mature electricity market mechanism, and the operating and pricing mechanisms of new types of energy storage can refer to pumped storage plants, with two-part tariffs being the main mode of operation.

How to improve electricity market mechanism?

1) Gradually improve the domestic spot market mechanism, form electricity market clearing prices and auxiliary service prices through market-oriented means. Enhancing market mechanisms helps to establish reasonable price signals, incentivizing energy storage to profit from the market through various services.

How can a capacity market be adapted for energy storage?

4) Adaptation of the capacity compensation mechanism for energy storage. In the initial stages of establishing a capacity market, it is recommended to consider compensation mechanisms from regions such as North America and the United Kingdom.