Ningxia accelerates the healthy and orderly development of energy storage industry

The Ningxia Autonomous Region Development and Reform Commission issued a letter soliciting opinions on the "Guiding Opinions on Accelerating the Healthy and Orderly Development of Energy Storage in the Autonomous Region (Draft for Comments)". According to the opinions, Ningxia will rely on the advantages of clean energy aggregation to promote the development of the energy storage industry and first carry out the construction of energy storage facilities in Ningdong, Wuzhong and Zhongwei, which are rich in new energy. Build a "new energy + energy storage" demonstration application project and promote its application throughout the region; during the "14th Five-Year Plan" period, energy storage facilities will be configured year by year in accordance with the principle of not less than 10% of new energy installed capacity and continuous energy storage time of more than 2 hours; explore the business model of energy storage facility operation and cultivate a group of competitive market players; the development of the energy storage industry has entered commercial application, and the key role of energy storage in the transformation of the energy system has been fully revealed.

The following is the original text

Letter from the Development and Reform Commission of the Autonomous Region on Soliciting Opinions on the "Guiding Opinions on Accelerating the Healthy and Orderly Development of Energy Storage in the Autonomous Region (Draft for Comments)"

All relevant enterprises:

In order to promote the integrated and supporting development of the clean energy industry in our region, conscientiously implement the spirit of the "Guiding Opinions of the National Development and Reform Commission and the National Energy Administration on Carrying out "Integrated Wind, Solar, Water, Fire and Storage" and "Integrated Source, Grid, Load and Storage" (Draft for Comments)", and effectively promote the high-quality development of energy in our region, the autonomous region's clean energy industry integrated supporting development work team has studied and drafted the "Guiding Opinions on Accelerating the Healthy and Orderly Development of Energy Storage in the Autonomous Region (Draft for Comments)". We now solicit opinions and suggestions from all relevant units. Please feedback the relevant opinions in a formal document to the Energy Development Department of our commission before January 15, 2021.

Contact: Li Ying Tel: 0951-5044601

Fax: 0951-8301962 Email: nengyuan_nx@126.com

Ningxia Hui Autonomous Region Development and Reform Commission
January 8, 2021

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Guiding Opinions on Accelerating the Healthy and Orderly Development of Energy Storage in the Autonomous Region (Draft for Comments)

These guiding opinions are formulated to conscientiously implement the Guiding Opinions on Promoting the Development of Energy Storage Technology and Industry (NDRC Energy [2017] No. 1701), the Notice of the National Energy Administration on Issuing the Work Plan for Improving the Electricity Auxiliary Service Compensation (Market) Mechanism (GNFA Supervision [2017] No. 67), and the Guiding Opinions of the National Development and Reform Commission and the National Energy Administration on Carrying out “Integration of Wind, Solar, Water, Fire and Storage” and “Integration of Source, Grid, Load and Storage” (Draft for Comments), and other documents, accelerate the development of energy storage technology and industry in the autonomous region, effectively improve the peak load and standby capacity of the power system, promote the consumption of new energy in our region, and build a “clean, low-carbon, safe and efficient” modern energy industry system.

I. General requirements

1. Guiding ideology

Guided by General Secretary Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 19th National Congress of the Communist Party of China and the spirit of General Secretary Xi Jinping’s important speech during his inspection tour to Ningxia and at the symposium on ecological protection and high-quality development in the Yellow River Basin. We will keep pace with the development of the domestic energy storage industry, give full play to our region’s resource advantages, and take the development of low-carbon green industries as a leading project to promote high-quality development and economic transformation and upgrading in our region, and build an energy storage industry system with strong innovation capabilities, high industrial levels, complete supporting facilities, and leading demonstration applications.

2. Basic principles

Government guidance and enterprise participation. Strengthen top-level design, increase policy support, and study and introduce supporting measures. Strengthen guidance and information services, promote the reasonable opening of energy storage facilities, and encourage diversified market players to participate in market competition fairly.

Innovation leads, demonstration takes precedence. Create an open and inclusive innovation environment, and encourage all forms of technological, mechanism and business model innovation. Give full play to the pilot role of demonstration projects, promote the trial of new energy storage technologies and models, and create a good atmosphere for mass innovation.

Market-led and reform-driven. Give full play to the decisive role of the market in resource allocation and encourage social capital to enter the energy storage field. In conjunction with the process of power system reform, gradually establish and improve the price formation mechanism of power market-oriented transactions and flexible resources, restore the commodity attributes of energy, and strive to break through institutional and mechanism barriers.

Overall planning and coordinated development. Strengthen overall planning and optimize the layout of energy storage projects. Pay attention to the coordinated development of upstream and downstream, and optimize the complete industrial chain from materials, components, systems, operations to recycling and reuse. Develop energy storage on the premise of ensuring safety, improve the standards, testing and certification system, and ensure product quality and orderly competition.

(III) Development goals

Relying on the advantages of clean energy concentration in our region, we will promote the development of the energy storage industry and first carry out the construction of energy storage facilities in the new energy-rich Ningdong, Wuzhong and Zhongwei areas. Build a "new energy + energy storage" demonstration application project and promote its application throughout the region; during the "14th Five-Year Plan" period, energy storage facilities will be configured year by year in accordance with the principle of no less than 10% of the installed capacity of new energy and continuous energy storage time of more than 2 hours; explore the business model of energy storage facility operation and cultivate a group of competitive market players; the development of the energy storage industry has entered commercial application, and the key role of energy storage in the transformation of the energy system has been fully demonstrated.

II. Key Tasks

(I) Strengthen unified planning. Following the principles of technical feasibility, economic rationality, safety and reliability, overall planning and layout of energy storage facilities such as pumped storage and electrochemical energy storage should be carried out to accelerate supporting construction and promote the coordinated development of grid, source, load and storage.

(II) Optimize the development model. Encourage power generation enterprises, power grid enterprises, power users, and electric energy storage enterprises to invest in and build energy storage facilities, and encourage the use of various investment methods to build energy storage power stations; in areas where new energy is abundant and the power grid transmission section is limited, encourage new and existing new energy projects to build energy storage devices, build regional shared energy storage facilities for the power grid, and create a profit model for shared energy storage power stations. Optimize the regional energy storage development model for new energy sources, and adopt integrated development models such as "solar storage", "wind storage", and "wind-solar storage" to plan and layout new energy sources according to local conditions. The configuration of energy storage is a necessary condition for the priority development of new energy sources.

(III) Clarify the configuration principles. The energy storage configuration ratio of new energy projects shall not be less than 10%, and the continuous energy storage time shall be more than 2 hours. In principle, the energy storage facilities of new projects shall be put into operation simultaneously with new energy projects, and the energy storage facilities of existing projects shall be put into operation before the end of 2021. From 2021, new energy enterprises that meet the above requirements will have priority in obtaining the right to develop wind and solar resources under the same conditions; energy storage projects that meet the above requirements will be supported to participate in the power auxiliary service market.

(IV) Promote demonstration projects. Encourage all cities and Ningdong Management Committee to vigorously guide social investment, test and demonstrate energy storage technologies, equipment and applications with industrialization potential, and vigorously promote the research and development demonstration of energy storage technology and equipment and the integrated development demonstration project of "new energy + energy storage".

(V) Establish a market mechanism. Encourage energy storage to participate in market transactions as an independent entity, incorporate electric energy storage transactions into the current Ningxia power auxiliary service market operation rules, standardize transaction varieties, clarify the price mechanism, discover energy storage prices through the market, stimulate market vitality, promote the consumption of new energy, make up for the lack of peak load regulation, and promote the healthy development of the energy storage industry.