68 user-side energy storage subsidies

How subsidized energy storage system works?

The subsidized ESS must charge and discharge on demand and are not allowed to charge during peak hours or discharge during valley hours. Besides policies tailored-made for each applications, supportive policies and the ToD tariff boost the development of energy storage industry.

What is user-side energy storage?

1. Introduction User-side energy storage mainly refers to the application of electrochemical energy storage systems by industrial, commercial, residential, or independent powerplant customers (which in convenience we call "firms").

How much energy storage will China have by 2025?

Many Chinese provinces have set energy storage targets since 2021. As shown in the graph below, some provinces will see nearly 100 GW of installed ESS capacity by 2025. More provincial governments introduced regulations for the generation side, the grid side, and the end user side.

How does Yunnan electricity subsidy work?

Yunnan Province provides RMB 4/MW of subsidy for electricity generators losing the bid or undeployed, and RMB 5/MW for those winning the bid or deployed by the grid. There is a RMB 3-8/MW of cap for subsidy application based on regulation mileage. End users profit through the time-of-day (ToD) tariff mechanism.

Can a subsidy policy be activated or terminated at an uncertain time?

The subsidy policy, however, can be activated or terminated at an uncertain time and therefore, the firms face additional policy uncertainty when making the decision. We derive the investment thresholds of the market spread that the firms use to make a decision on investing immediately or holding an option.

Will China keep implementing policy incentives for energy storage?

To effectively guarantee its grid stability of renewable energy sources, the Chinese government is expected to keep implementing its policy incentives for energy storage in the near future. This particular dataset provides us with the technical specifications of an energy storage system and allows us to calculate the model parameters.