Implementation Opinions of Zhejiang Provincial Development and Reform Commission and Provincial Energy Bureau on Accelerating the Demonstration and Application of New Energy Storage in Zhejiang Province

To the Development and Reform Commissions of all cities, provincial power companies, provincial energy groups, Zhejiang branches of all central power generation groups, and all relevant units and enterprises:

In order to take the lead in building a new power system with new energy as the main body, and accelerate the realization of the "three transformations" of clean power sources, intelligent power grids, and social electrification, in accordance with the "Guiding Opinions of the National Development and Reform Commission and the National Energy Administration on Accelerating the Development of New Energy Storage" (Development and Reform Energy Regulation [2021] No. 1051), combined with the actual situation in our province, this implementation opinion is specially formulated.

I. Guiding Ideology

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the new energy security strategy of "four revolutions and one cooperation", fully implement the carbon peak and carbon neutrality goals, faithfully practice the "88 Strategy", strive to build an "important window", focus on promoting the construction of a common prosperity demonstration zone in our province, accelerate the innovation of new energy storage technologies, establish and improve supporting mechanisms, achieve high-quality development of the new energy storage industry, further enhance the coordinated interaction capabilities of new energy storage with sources, grids and loads, and enhance the flexibility, regulation and security capabilities of the power system.

2. Work Objectives

From 2021 to 2023, the province will build and connect 1 million kilowatts of new energy storage demonstration projects to the grid, and strive to achieve the development goal of about 2 million kilowatts of new energy storage demonstration projects during the 14th Five-Year Plan. In line with the development of new power systems, we will focus on supporting the construction of new energy storage projects of large scale (capacity not less than 50,000 kilowatts) and distributed platform aggregation (capacity not less than 10,000 kilowatts) to provide capacity support and peak-shaving capabilities for the power system. We will encourage the exploration and demonstration of hydrogen storage, molten salt energy storage and other innovative energy storage technologies.

III. Key Tasks

1. Strengthening project planning

1. Standardize planning and management. Study and formulate a special plan for new energy storage, clarify the development goals, overall layout and key tasks of new energy storage in the province. Strengthen the connection with the development plans of energy, electricity, renewable energy, etc. in the province, and propose the scale and nodes of reasonable configuration of new energy storage in combination with the actual needs of the system, and guide the construction of new energy storage projects in areas with large peak-to-valley differences in power load, weak system absorption capacity, and high transformation costs.

2. Improve project management. The new energy storage demonstration projects in this region shall be subject to county (city, district) local filing management in accordance with relevant investment laws and regulations, provincial power grid planning, special planning for new energy storage, etc., and the project filing status shall be copied to the dispatched agency of the National Energy Administration. The filing content should include: basic information of the project unit, project name, construction location, construction scale, construction content (including technical route, application scenario, main functions, emergency disposal, etc.), total project investment, etc. When filing an independent energy storage project, the project type (power supply side, grid side or user side) must be specified. Formulate and issue new energy storage management methods, and study and determine the management specifications for grid connection, operation, etc. of various new energy storage. New energy storage projects shall refer to the management regulations of power supply, grid, and user power facilities, and be included in the unified management of power operation in the province.

3. Clarify parameter standards. New energy storage demonstration projects should be set up with a working life of 10 years or more, and the performance of major equipment should comply with relevant national standards and specifications. New energy storage demonstration projects that play a peak-shaving role should have a connection voltage level of 10kV or above, a power of not less than 50,000 kilowatts, and a continuous discharge time of not less than 2 hours at rated power. Energy storage demonstration projects that combine thermal power units for frequency regulation should have a single power of not less than 18,000 kilowatts, and a comprehensive regulation performance index Kpd value of not less than 0.9. For new electrochemical energy storage power stations using lithium batteries, in principle, the AC side efficiency should not be less than 85%, the discharge depth should not be less than 90%, the power station availability should not be less than 90%, and the number of charge and discharge times should not be less than 6,000 times; other forms of energy storage power stations should be determined in accordance with the principle of "one case, one discussion".

2. Carry out project demonstration

4. Carry out the construction of power supply side energy storage in an orderly manner. Support the construction of power supply side energy storage projects such as "microgrid + energy storage" and "new energy + shared energy storage", and encourage the construction or purchase of new energy storage (services) for newly added offshore wind power and centralized photovoltaic power stations based on practical factors such as new energy characteristics, system absorption space, regulation performance and economy. Encourage centralized energy storage power stations to provide capacity leasing or purchasing services for new energy. Encourage coal-fired power plants to build supporting new energy storage facilities and jointly adjust the frequency with coal-fired units to enhance their overall competitiveness.

5. Vigorously develop grid-side energy storage construction. Support various market players to invest in and build a batch of grid-side energy storage to alleviate peak load power supply pressure and delay the expansion and upgrading of transmission and distribution, focusing on the needs of power supply and load, and improve the grid regulation, new energy consumption and emergency power supply guarantee capabilities. Existing and newly built grid-side energy storage projects that are not included in the transmission and distribution price are included in the scope of support of this policy. After the relevant national policies are adjusted, they will no longer enjoy the support of this policy.

6. Actively support the construction of user-side energy storage. Encourage corporate users or integrated energy service providers to independently build energy storage facilities according to user load characteristics, make full use of the catalog time-of-use electricity price mechanism, actively reduce peak loads and fill valleys, and optimize regional power grid load demand. Vigorously promote the diversified application of energy storage such as 5G base stations, data centers, charging facilities (battery swap stations), and electric vehicles. Promote the coordinated development of energy storage applications and power grids, explore the use of digital technology to carry out platform aggregation of distributed energy storage facilities, encourage the development of new formats such as smart energy and virtual power plants, and give full play to the balancing role of flexible and adjustable energy storage resources in new power systems.

7. Focus on promoting the construction of independent energy storage. Research on the use of existing lines and facilities of obsolete or retired power sources and substations to build independent energy storage power stations. Encourage power sources, power grids, and users to lease or purchase energy storage services provided by independent energy storage facilities.

3. Improve institutional support

8. Optimize the dispatching and operation mechanism. Support demonstration projects that meet relevant requirements and conditions to have priority access, priority dispatching, and priority consumption. Under the premise of scientific dispatching, focus on ensuring that peak-shaving projects play a peak-shaving role (annual utilization hours of not less than 600 hours).

9. Deepen the market-oriented reform of electricity. Support new energy storage to participate in medium- and long-term transactions, spot and auxiliary service electricity markets as independent market entities, and promote the sustainable development of energy storage through the market. Formulate a guide for new energy storage to participate in electricity market transactions, determine the technical standards, trading mechanisms and price formation mechanisms for new energy storage to participate in medium- and long-term, spot and other electricity energy markets, and auxiliary service markets such as peak load regulation and frequency regulation.

10. Strengthen financial support. Support and guide new energy storage to achieve full life cycle operation through market means. During the transition period, peak-shaving projects (annual utilization hours of not less than 600 hours) will be compensated for capacity, and the compensation standard will decline year by year. The subsidy period is tentatively set at 3 years (at 200 yuan, 180 yuan, and 170 yuan/kW·year). For demonstration projects of frequency regulation of combined thermal power units, Kpd values ​​> 0.9 will be rewarded with a certain coal consumption quota of 200,000 kWh/MW frequency regulation per month based on energy storage capacity. Encourage local governments to innovate new energy storage development business models and study and introduce various financial support policies. Financial investment institutions provide green financing support for demonstration projects, encourage and guide industrial funds to be injected into the industry, and adopt various means to ensure funding needs.