67 articles! 21 provinces and cities! A review of national energy storage policies in December 2023

According to statistics, in December 2023, the state and local governments issued a total of 67 energy storage-related policies! Among them, the state issued 6 policies and local governments issued 61 policies. According to the specific direction of energy storage policies, among the local policies, there are 6 energy storage subsidy policies, 5 energy storage planning and layout policies, 9 new energy storage policies, 10 energy storage participation policies, 2 energy storage battery policies, 2 energy storage project policies, 2 pumped storage policies, 14 charging and swapping and new energy vehicle related policies, and 11 other related policies.

National level

A total of six energy storage-related policies have been introduced at the national level.

Among them, on December 11, the Central China Regulatory Bureau of the National Energy Administration issued the "Implementation Rules for the Entry and Exit of Commercial Operation of Generators in the Central China Region". It is mentioned that the rules clearly state that generators and independent new energy storage will participate in the sharing of power auxiliary service costs from the date of their first grid-connected power generation. Renewable energy generators other than hydropower and independent new energy storage will be included in the power grid-connected operation and auxiliary service management from the date the first unit or inverter is connected to the grid for power generation.

Generators and independent new energy storage units in the commissioning operation period, as well as generators (excluding coal-fired emergency backup power supplies) and independent new energy storage units that have withdrawn from commercial operation but can still generate electricity and connect to the grid, are divided into corresponding commissioning stages by natural month. The apportionment standards for different commissioning stages during the grid-connected commissioning period are as follows:

1. The first stage. Pay the power auxiliary service fee according to the 2-fold apportionment standard. That is, first pay the "two detailed rules" ancillary service apportionment fee α and the peak and frequency regulation and other power auxiliary service market apportionment fee β according to the normal standard. Then deduct 1 times the power auxiliary service fee (α+β) from the grid-connected electricity fee of the month and include it in the source of the "two detailed rules" ancillary service compensation fee.

2. The second stage. First, pay the "two detailed rules" ancillary service sharing fee α and peak load and frequency regulation and other power ancillary service market sharing fee β according to normal standards. If the commercial operation conditions of Articles 9 and 10 are met before D3, commercial operation will be automatically entered. If the commercial operation conditions of Articles 9 and 10 are still not met before D3, the power ancillary service fee (α+β) borne each month in this stage will be deducted from the grid-connected electricity fee of that month and included in the source of compensation fees for ancillary services of the "two detailed rules".

3. The third stage. Pay the power auxiliary service fee at three times the standard. That is, pay the "two detailed rules" auxiliary service sharing fee α and the peak and frequency regulation and other power auxiliary service market sharing fee β according to the normal standard every month, and then deduct twice the power auxiliary service fee (2*α+2*β) that has been borne every month from the grid-connected electricity fee of that month, and include it in the source of compensation fee for the "two detailed rules" auxiliary services.

On December 27, the General Office of the National Energy Administration issued the "Notice on Publicizing New Energy Storage Pilot Demonstration Projects". A total of 56 projects were listed as new energy storage pilot demonstration projects, with a total scale of over 8.16GW/29.86GWh.

The energy storage technology routes of these 56 selected projects include single and hybrid energy storage technologies such as lithium-ion batteries, compressed air, flow batteries (all-vanadium, zinc-iron, iron-based), flywheels, gravity, carbon dioxide, liquid air, sodium-ion batteries, and lead-carbon batteries. Among them, the number of lithium-ion battery projects is the largest, reaching 17, with a total scale of over 2.15GW/4.4GWh; there are 11 compressed air energy storage projects with a total scale of over 2.75GW/12.95GWh; there are 8 flow battery energy storage projects, including 6 all-vanadium flow battery projects, 1 iron-based flow project, and 1 zinc-iron flow project.

Local level

At the local level, 21 provinces and cities, including Guangdong, Fujian, Zhejiang, Jiangsu, Anhui, Guangxi, Henan, Hunan, Shandong, Shanxi, Inner Mongolia, Ningxia, Yunnan, Gansu, Hebei, Jilin, Liaoning, Shanghai, Sichuan, Xinjiang, and Chongqing, have issued 48 policies related to energy storage.

In terms of energy storage subsidies, Jiashan County, Zhejiang Province, will provide a one-time construction subsidy of 0.3 yuan per watt of the project's rated discharge power, with a maximum of no more than 1 million yuan, for new user-side new energy storage projects with an installed capacity of more than 1MW that are included in the unified control of the county-level power load control management center.

Hangzhou, Zhejiang Province proposed that charging facilities equipped with energy storage can receive a subsidy of up to 480 yuan/kW.

Baiyun District, Guangzhou City, Guangdong Province, will provide investment entities with support of no more than 0.2 yuan/kWh based on the discharge volume for user-side new energy storage projects that adopt more than two types of photovoltaics, energy storage, hydrogen energy, charging piles, smart energy management, etc. and have an installed capacity of more than 1 megawatt, starting from the month after the grid is connected to the grid and put into operation. The continuous support will not exceed 2 years, and the maximum for the same project will not exceed 3 million yuan.

In terms of energy storage planning, Dongguan, Guangdong, will strive to reach 300,000 kilowatts of new energy storage installed capacity by 2025. By 2027, the city will strive to reach 500,000 kilowatts of new energy storage installed capacity.

Inner Mongolia has proposed that by the end of 2025, the scale of energy storage on the grid side will reach more than 3GW, and the scale of energy storage on the power supply side will reach more than 6GW.

Hunan Province requires that by 2030, the scale of pumped storage will reach 10.4 million kilowatts, and the installed capacity of new energy storage will reach 4.5 million kilowatts, with the ratio of new energy storage installed capacity in the province reaching 1:3, making it a national highland for the application of system regulation capabilities.

In terms of new energy storage, Jilin Province proposed that from 2023, new new energy projects should, in principle, be equipped with energy storage at 15% of installed capacity, with a charging time of more than 2 hours, and centralized sharing methods are encouraged.

Nanning, Guangxi encourages newly built corporate (non-natural person) photovoltaic power generation projects to build energy storage systems at a rate of more than 10% of the installed capacity, with a continuous discharge time of no less than 2 hours at rated power. The leased capacity is deemed to be the same as the built capacity.

Hebei Province encourages new energy power generation companies to enhance their peak-shaving grid-connected capabilities by self-building, leasing, purchasing energy storage facilities or purchasing energy storage capacity.

In terms of electricity prices and market transactions, Shandong Province clearly stipulates that the charging and discharging prices of independent energy storage shall be settled according to the current market spot price, and the discharge price of equipped energy storage shall be settled according to the current market spot price. The resulting price difference costs (income) shall be shared by all industrial and commercial households.

Anhui Province proposed that power grid companies charge fees to new energy companies based on the settlement basis, and pay the compensation fees to independent energy storage companies. The compensation settlement for charging and discharging loss costs of independent energy storage companies is settled quarterly and settled together with the electricity bill of the last month of each quarter.

Jiangsu Province proposed that independent energy storage power stations on the grid side must also declare the price of power frequency regulation auxiliary services and whether to participate in the market. The upper limit of mileage quotation is 1.2 yuan/MW.

As an important new energy infrastructure, the construction of charging and swapping facilities has received attention from all regions. Shangqiu City, Henan Province, issued a document proposing to achieve full coverage of charging facilities in expressway service areas and full coverage of centralized charging demonstration stations in counties by the end of 2023. By 2025, a total of more than 100 centralized charging and swapping stations and more than 6,000 charging piles of various types will be built.

The Lanzhou New District in Gansu Province has made it clear that by 2025, the scale of new energy vehicle charging piles will reach more than 700; by 2035, the scale of new energy vehicle charging piles will reach more than 4,000.

In order to guide residents to charge during off-peak hours, Yunnan Province has set the electricity price at 0.31 yuan/kWh during off-peak hours and 0.61 yuan/kWh during non-off-peak hours for users who choose to implement the time-of-use electricity price policy for residential electric vehicle charging piles.