National Energy Administration: Energy storage is included in the central budget funding support! Attach great importance to and promote the establishment of a sound new energy storage price and market mechanism

On February 13, the National Energy Administration issued a reply to the 13th National People's Congress's proposal No. BH0108. The National Energy Administration responded to the introduction of new energy storage pricing policies, the establishment of ancillary services and capacity electricity price compensation mechanisms, the establishment and improvement of national technical standards covering all aspects such as planning and design, construction and installation, and grid-connected operation.

The following is the original text

Reply to the 13th National People's Congress Deputies' Proposal No. BH0108

We have received your suggestions on supporting Sichuan and Chongqing to accelerate the development of new energy storage. Your suggestions are of great value for improving the policy mechanism for the development of new energy storage and innovating development models. Giving full play to the energy resource advantages of Sichuan and Chongqing and promoting the coordinated development of new energy storage and renewable energy are of great significance for supporting the construction of a new power system and alleviating regional power supply and demand tensions. The National Energy Administration attaches great importance to your suggestions. After consulting with the National Development and Reform Commission, the Ministry of Finance, and the State Administration for Market Regulation, we now reply as follows:

1. Including new energy storage in Sichuan and Chongqing in the scope of central budget funding support and providing certain central funding support

In order to promote the development of new energy storage, the National Development and Reform Commission organized the construction of the National Energy Storage Technology Industry-Education Integration Innovation Platform, promoted universities and enterprises to jointly carry out talent training, discipline construction, and scientific and technological innovation, opened up the chain of basic research, application development, achievement transfer and industrialization, and built a new innovation system of industry-university-research-application collaboration. In 2022, Chongqing University will be included in the "leader" universities through "unveiling the list and selecting the best". Subsequently, the National Development and Reform Commission will actively arrange central budget investment to support the construction of the National Energy Storage Technology Industry-Education Integration Innovation Platform, and strive to promote the high-quality development of new energy storage.

2. On the rapid development of new energy storage pricing policies and the establishment of ancillary services and capacity electricity price compensation mechanisms

Our bureau attaches great importance to and promotes the establishment of a sound new energy storage price and market mechanism, and promotes the diversified, market-oriented and industrialized development of new energy storage.

(I) Price policy. First, in 2022, the Implementation Plan for the Development of New Energy Storage during the 14th Five-Year Plan Period was issued in conjunction with the National Development and Reform Commission, which explicitly requires the establishment of corresponding price mechanisms in combination with different application scenarios. Second, in 2021, the Notice on Further Improving the Time-of-Use Electricity Price Mechanism was issued in conjunction with the National Development and Reform Commission, requiring all localities to scientifically divide peak and valley periods, introduce peak electricity price mechanisms, and reasonably expand the price difference between peak and valley electricity prices, creating favorable conditions for the development of new energy storage on the user side. Third, in 2022, the Notice on Further Promoting the Participation of New Energy Storage in the Electricity Market and Dispatching was issued in conjunction with the National Development and Reform Commission, clarifying that if independent energy storage supplies electricity to the power grid, the corresponding charging electricity will not bear the transmission and distribution price, government funds, and surcharges.

(II) Ancillary service market. First, the "Regulations on Power Grid Operation Management" and "Power Auxiliary Service Management Measures" were issued in 2021, which clearly support the policy measures related to the grid connection of new energy storage and participation in auxiliary services. Second, the "Key Points for Energy Supervision in 2023" was recently issued, proposing to establish and improve a user-participated auxiliary service sharing mechanism, promote the marketization of frequency regulation, standby and other varieties, and continuously guide new entities such as virtual power plants and new energy storage to participate in system regulation. Third, in the past two years, many regions across the country have issued or are revising the implementation rules for power grid operation management and power auxiliary service management, and have solidly promoted the relevant mechanisms for the participation of new energy storage in the power market, and explored the construction of capacity, ramping, moment of inertia and other auxiliary service trading varieties.

III. Establishing and improving national technical standards covering all aspects of planning and design, construction and installation, and grid-connected operation

Promoting the establishment and improvement of a new energy storage standard system is an important foundation for supporting the technological progress and industrial development of new energy storage. Our bureau continues to promote the standardization of new energy storage. First, in 2020, in the first batch of science and technology innovation (energy storage) pilot demonstration projects, standardization will be used as an important demonstration content for follow-up evaluation, and standardization implementation innovation seminars will be organized. Second, in 2020, together with the Ministry of Emergency Management and the State Administration for Market Regulation, the "Implementation Plan for Strengthening Energy Storage Standardization Work" was issued, which put forward requirements for standardization work mechanisms, standard systems, and standardization demonstrations, and established energy storage standardization information platforms and WeChat public accounts to strengthen standard publicity, promote cooperation between standardization agencies, and accelerate the formulation and revision of key standards. So far, a standard system covering basic general, planning and design, equipment testing, construction acceptance, grid-connected operation, detection and monitoring, operation and maintenance, safety and emergency response has been initially formed. Third, at present, together with the State Administration for Market Regulation, a guide for the construction of a new energy storage standard system is being compiled to accelerate the construction of a new energy storage standard system and promote the development of mandatory safety standards for energy storage batteries and energy storage systems.

With the joint efforts of the whole country, as of the end of 2022, except Sichuan and Yunnan, the cumulative installed capacity of new energy storage put into operation in all provinces (cities and regions) across the country has reached 8.7 million kilowatts/18.1 million kilowatt-hours, an increase of more than 110% year-on-year.

In the next step, we will actively work with relevant departments to improve the support policies for new energy storage, strengthen communication with energy authorities in Sichuan, Chongqing and other places, guide local governments to strengthen the planning, layout and dispatching of new energy storage, actively carry out pilot demonstrations, improve supporting policies and mechanisms, strengthen the coordination of production, education, research and application, and promote the coordinated development of the entire industrial chain.

Thank you for your concern and understanding of the national energy work. We hope to receive more support and guidance from you in the future.

National Energy Administration
February 13, 2023