Notice on Promoting the Participation of Electric Energy Storage in Peak Loading Auxiliary Services in the "Three Norths" Region (Draft for Comments)

The National Energy Administration issued a notice on promoting the participation of electric energy storage in the auxiliary peak-shaving services in the "Three Norths" region. The notice stipulates that power generation companies, power sales companies, power users, independent auxiliary providers, etc. are encouraged to invest in electric energy storage facilities. Electric energy storage facilities with a charging power of less than 10 megawatts and a continuous charging time of more than 4 hours can participate in the auxiliary frequency regulation services on the power generation side. The full text is as follows:

Letter on Soliciting Opinions on the "Notice of the National Energy Administration on Promoting Electric Energy Storage to Participate in Peak Loading Auxiliary Services in the "Three Norths" Region (Draft for Comments)"

Department of Science and Technology, Department of Electricity, Department of New Energy, North China, Northeast China, Northwest China Energy Regulatory Bureau, Shanxi, Shandong, Gansu, Xinjiang Energy Regulatory Office:

In order to implement the spirit of Several Opinions of the CPC Central Committee and the State Council on Further Deepening the Reform of the Electricity System (Document No. 9 of the Central Committee of the Communist Party of China [2015]) and its supporting documents, implement the relevant requirements of the Notice of the National Energy Administration on Doing a Good Job in the Consumption of Renewable Energy in the Three Norths (Document No. 39 of the State Energy Supervision [2016]) and the Guiding Opinions on Promoting the Development of "Internet +" Smart Energy (Document No. 392 of the National Development and Reform Commission [2016]), focus on solving the peak load regulation problem of the power system in the Three Norths, give full play to the role of electric energy storage technology in peak load regulation, promote the establishment of a new mechanism for sharing and balancing auxiliary services, reduce wind and solar power abandonment, and meet the heating needs of the people, our company has organized the drafting of the Notice of the National Energy Administration on Promoting Electric Energy Storage to Participate in the Peak Load Regulation Auxiliary Services in the Three Norths (Draft for Comments). Please propose revisions and provide written feedback to our company before March 17.

Contact: Feng Wei

Contact: 010-66597346 010-66023677 (Fax)

fengw@nea.gov.cn

Attachment: Notice of the National Energy Administration on Promoting the Participation of Electric Energy Storage in Peak Loading Auxiliary Services in the "Three Norths" Region (Draft for Comments)

Market Supervision Department of National Energy Administration

March 10, 2016

appendix:

Notice of the National Energy Administration on promoting the participation of electric energy storage in the peak load regulation auxiliary service work in the "Three Norths" region

(Draft for comments)

North China, Northeast China, Northwest China Energy Regulatory Bureau, Shanxi, Shandong, Gansu, Xinjiang Energy Regulatory Office, Beijing, Tianjin, Hebei, Shanxi, Shandong, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Shaanxi, Gansu, Ningxia, Xinjiang, Qinghai Province (autonomous region, municipality directly under the central government) Development and Reform Commission (Energy Bureau), State Grid Corporation, Huaneng, Datang, Huadian, Guodian, State Power Investment Corporation, Three Gorges, Shenhua Group Corporation, State Development and Investment Corporation, Inner Mongolia Electric Power (Group) Co., Ltd., relevant power companies:

In order to implement the spirit of Several Opinions of the CPC Central Committee and the State Council on Further Deepening the Reform of the Electricity System (Document No. 9 of the Central Committee of the Communist Party of China [2015]) and its supporting documents, implement the relevant requirements of the Notice on Doing a Good Job in the Consumption of Renewable Energy in the Three Norths (State Energy Supervision [2016] No. 39) and the Guiding Opinions on Promoting the Development of "Internet +" Smart Energy (Development and Reform Energy [2016] No. 392) issued by our Bureau, focus on solving the peak load regulation problem of the power system in the Three Norths, give full play to the role of electric energy storage technology in peak load regulation, promote the establishment of a new mechanism for sharing auxiliary services, reduce wind and solar power abandonment, and meet the heating needs of the people, hereby notify you of the promotion of electric energy storage in the Three Norths to participate in the peak load regulation auxiliary service work:

1. Reasonable configuration of electric energy storage facilities

(I) Encourage power generation companies, power sales companies, power users, independent ancillary service providers, etc. to invest in the construction of electric energy storage facilities. Electric energy storage facilities with a charging power of more than 10 megawatts and a continuous charging time of more than 4 hours can participate in the power generation side peak load ancillary service market.

(II) Local governments are encouraged to configure energy storage facilities of appropriate scale when planning centralized renewable energy power generation bases, so as to achieve coordinated and optimized operation of energy storage facilities, renewable energy and power grids.

(III) Encourage the construction of distributed electric energy storage facilities (including electric heating energy storage facilities) on the user side of residential areas, buildings, industrial and commercial enterprises, etc. User-side energy storage facilities can participate in ancillary service market transactions as part of demand-side resources.

2. Scientifically dispatch and operate electric energy storage facilities

(IV) In principle, electric energy storage facilities should connect real-time charging and discharging information to the power dispatching agency. Electric energy storage facilities with a discharge power of more than 10 megawatts should accept unified dispatching and command from the power dispatching agency when in the charging state.

(V) Electric energy storage facilities (including electric heating energy storage facilities) built within the metering outlet of power plants can participate in peak load regulation together with the units, or participate in peak load regulation auxiliary service market transactions as independent entities. The discharged electricity is settled according to the relevant contract electricity price of the power plant.

The electric energy storage facilities built on the user side (including electric heating energy storage facilities) can purchase off-peak charging power according to the direct trading rules for power users, and when discharging, they can be regarded as distributed power sources selling power to nearby power users. When the electric energy storage facilities built on the user side participate in the peak-shaving auxiliary service market, they can only participate in deep peak-shaving and start-stop peak-shaving.

Electric energy storage devices with a charging time of more than 4 hours participate in the start-stop peak-shaving service on the power generation side and are regarded as the start-stop peak-shaving of a thermal power unit with an equivalent minimum stable combustion power.

(VI) The electric energy storage facilities built within the metering outlets of wind farms and photovoltaic power stations shall be monitored and recorded by the power dispatching agency in real time for charging and discharging. The charging capacity of the electric energy storage facilities shall be used first by the wind farms and photovoltaic power stations where they are located. If the electric energy storage facilities have surplus charging capacity, they can participate in the ancillary service market transactions.

3. Work Requirements

(VII) Grid companies in the “Three Norths” region should proactively provide services for the connection of energy storage facilities to the grid, with user-side energy storage facilities being treated in accordance with relevant policies on distributed power sources.

(VIII) All dispatched agencies in the “Three Norths” region should work with the energy management departments of relevant provinces (autonomous regions and municipalities) to organize, coordinate and supervise the implementation of the work, summarize experiences in a timely manner, analyze existing problems, and put forward specific opinions and suggestions for further promoting the participation of electric energy storage in peak load assistance services. If there are any problems in the work, please report them to the National Energy Administration in a timely manner.