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"New energy + energy storage" can effectively respond to fluctuations in wind and solar output, improve the utilization rate of new energy, and enhance grid safety performance. It is beneficial for ensuring the safe and stable operation of electricity and promoting the high-quality development of new energy, serving as an important support for building a new power system. According to statistics from the Zhongguancun Energy Storage Alliance, in the first half of 2023, the proportion of newly added energy storage projects applied to the power source side nationwide was about 42%, with energy storage configured for new energy accounting for as much as 98%, still being an important application field for energy storage. However, both energy storage technology itself and the new energy configuration storage model are still in the development process. With the advancement of technology and practice, the understanding of the coordinated development of new energy and energy storage is deepening, and the configuration of energy storage for new energy is also focusing on the development trends of the new power system and accelerating the adjustment of practical issues in energy storage utilization, leading to some new changes and attempts.

　The configuration method of "new energy + energy storage" is more flexible.

Some regions are trying a new model of "determining new energy based on storage."

Traditionally, various regions have configured energy storage capacity based on a certain proportion of the installed capacity of newly built new energy projects, making energy storage configuration a necessary prerequisite for new energy projects to connect to the grid. However, as the installed capacity of individual new energy projects continues to increase, the scale of energy storage configured according to the prescribed proportion is also growing, making it increasingly difficult to meet the storage configuration indicators. The main purpose of new energy configuration storage is to equip newly added new energy projects with necessary and sufficient regulation capacity to ensure reasonable utilization of new energy and the safe and stable operation of the power system. Its essence is to ensure that the scale of new energy construction matches the flexible regulation capacity of the power system. Therefore, it is possible to "prepare for a rainy day" by configuring a certain scale of energy storage for new energy projects, or to "spend according to income" by determining the scale of new energy development based on the status of energy storage construction. Currently, some regions have initiated a new model of "determining new energy based on storage," such as Hunan proposing that by the end of December 2022 and the end of June 2023, new energy pilot projects with full capacity connected to the grid will calculate the configured new energy capacity at 1.5 times and 1.3 times their installed capacity, respectively; Xinjiang proposed that enterprises constructing energy storage projects with a duration of more than 4 hours are allowed to configure energy storage capacity for wind and solar power projects at 4 times the scale. "Determining new energy based on storage" is a new attempt in new energy configuration storage, making the storage configuration method more diverse and helping to encourage various regions to continuously explore more scientific, applicable, and effective models for the coordinated development of new energy and energy storage.

　Capacity leasing has become a new trend in new energy configuration storage.

Initially, new energy configuration storage was mainly self-built by new energy enterprises. However, due to high energy storage costs and limited application scenarios, many issues arose, such as uneven quality of constructed energy storage, "built but unused," and "used but ineffective." To further optimize resource allocation and improve the comprehensive utilization efficiency of energy storage, since 2023, regions such as Guangdong, Jiangsu, Guangxi, Sichuan, Henan, Tianjin, and Zhejiang have successively introduced policies that clarify that new energy projects can flexibly configure energy storage through self-construction, co-construction, or leasing. Considering factors such as land conservation, scale effects, efficiency improvement, and risk prevention, many regions also encourage new energy projects to prioritize co-construction and leasing methods for energy storage configuration and provide preferential and supportive policies for leasing methods. For example, Guangxi proposed that market-oriented new energy projects that have configured energy storage through capacity leasing will be exempt from sharing peak-shaving auxiliary service fees; Henan prioritizes new energy projects that sign long-term leasing agreements in the annual wind and solar development plan under the same conditions. At the same time, the energy storage capacity leasing mechanism is continuously being standardized and improved, with various regions further specifying requirements for contract signing, leasing periods, transaction organization, configuration scope, and guiding prices. Currently, most regions advocate that energy storage capacity leasing contracts cover the entire lifecycle of new energy projects, with reference prices ranging from 150 to 400 yuan per kilowatt-hour per year. The energy storage leasing model breaks the boundary between new energy configuration storage and independent energy storage, promoting the broader application of independent energy storage on the power source side, which plays an important role in reducing the burden of energy storage configuration on new energy enterprises and enhancing the enthusiasm and utilization rate of energy storage investment.

　　The application scenarios of "new energy + energy storage" are becoming more diverse.

The demand for distributed new energy configuration storage is strong.

In recent years, new energy generation has continued to develop rapidly, showing a significant characteristic of both centralized and distributed development. As of the end of June 2023, the installed capacity of photovoltaic power generation nationwide reached 470 million kilowatts, of which distributed photovoltaic accounted for 198 million kilowatts, exceeding 40%. In terms of regions, the development momentum of distributed photovoltaic in the eastern region is rapid, with installed capacity surpassing that of centralized photovoltaic, where distributed photovoltaic in Zhejiang accounts for nearly 78%, Shandong over 72%, and Jiangsu over 67%. The large-scale development of distributed photovoltaic will have a certain impact on the safe and reliable power supply for users and the stable operation of the distribution network, stimulating the enthusiasm for promoting the local consumption and utilization of new energy through energy storage configuration, and gradually expanding the demand for energy storage configuration from centralized new energy to distributed new energy. Currently, regions such as Jiangsu, Zhejiang, Shandong, and Ningxia have put forward clear requirements for energy storage configuration for distributed photovoltaic, with most requiring the storage configuration ratio to account for 8% to 15% of the new energy installed capacity. With the large-scale development of distributed photovoltaic mainly in industrial parks, building rooftops, and charging stations, the trend of "high photovoltaic installed capacity, surplus electricity during peak hours, and tight electricity supply during evening peak hours" is becoming increasingly evident. Under the incentive of peak and valley electricity prices, energy storage configuration can not only improve the utilization rate of photovoltaic power generation and reduce energy costs for enterprises but also generate certain revenue from electricity sales through "excess electricity going online." Against this backdrop, the demand for energy storage configuration for distributed new energy on the user side will further expand, and the "new energy + energy storage" model will gradually extend from the power source side to the user side.

"New energy + hybrid energy storage" accelerates research and application.

Currently, energy storage technology can be divided into five types: mechanical energy storage, electrical energy storage, electrochemical energy storage, thermal energy storage, and chemical energy storage. Different types of energy storage technologies have significant differences in energy density, response speed, cycle life, safety performance, and construction costs, making them suitable for different scenarios. To achieve complementary advantages of various technologies and improve the overall economy and adaptability of energy storage systems, the application of energy storage technology is evolving from single energy storage to hybrid energy storage. With the large-scale integration of new energy generation, the safe and stable operation of the power system faces many challenges such as frequency modulation and peak shaving, which require different time-scale regulation demands for configured energy storage, including short-term second-level frequency modulation, daily hourly peak shaving, and long-cycle regulation across days and months. Especially during continuous cloudy days or extremely hot and windless weather, there is a pressing demand for long-term energy storage to cope with situations where new energy power plants have no output for several days over a wide area. To meet the different application scenarios of energy storage, various hybrid energy storage systems, such as "flywheel energy storage + electrochemical energy storage," "supercapacitor + electrochemical energy storage," and "compressed air + electrochemical energy storage," are accelerating research and demonstration. In June 2023, a demonstration project for frequency modulation application of "flywheel energy storage + lithium battery hybrid energy storage" was successfully connected to the grid in Erenhot, Inner Mongolia. This project consists of a hybrid energy storage system composed of three 1-megawatt flywheel arrays coordinated with 3 megawatts of lithium batteries, providing frequency modulation auxiliary service support for a 99-megawatt wind farm.

　　The revenue model of "new energy + energy storage" is becoming more diverse.

Exploring the transition of new energy configuration storage to independent energy storage.

Currently, the main position of independent energy storage has been clarified, and various regions are gradually promoting independent energy storage to participate in electricity spot and ancillary service market transactions. Compared to independent energy storage, renewable energy co-located storage cannot independently participate in the electricity market, and its calling enthusiasm and initiative are significantly lacking. Taking Shandong as an example, from January to June 2023, independent energy storage can basically achieve one charge and one discharge per day, with utilization hours reaching 533 hours, while co-located storage utilization hours are only 192 hours, about 1/3 of independent energy storage. The efficiency and revenue gap between independent energy storage and co-located storage in actual operation have received widespread attention. Regions such as Shandong, Sichuan, Henan, and Jiangsu have introduced policies that clarify that new energy storage projects existing in co-located form can choose to convert to independent energy storage projects when they meet the same technical conditions and safety standards through technological transformation. Among them, Shandong is accelerating the pace of converting renewable energy co-located storage to independent energy storage, has launched pilot work, and has put forward clear requirements for related technical conditions, safety plans, application review, and tracking acceptance. The conversion of renewable energy co-located storage to independent energy storage can effectively revitalize existing co-located storage resources, promote better participation in the electricity market and scheduling, and achieve optimal allocation and shared use of idle resources on a larger scale. By the end of 2022, the cumulative scale of renewable energy co-located storage nationwide had reached 2.82 million kilowatts/5.5 million kilowatt-hours, with a large amount of potential resources that can be converted to independent energy storage.

　　Promote the joint market entry of renewable energy and co-located storage.

Currently, the incentive mechanism for renewable energy co-located storage mainly relies on administrative means such as one-time subsidies, generation subsidies, priority grid connection, and priority consumption, resulting in a relatively single profit model that mainly depends on reducing wind and solar curtailment and increasing renewable energy grid-connected electricity to generate revenue. However, the scale of renewable energy participating in electricity market transactions nationwide is limited, and the charging and discharging prices of renewable energy co-located storage cannot be linked to electricity market prices, leading to insufficient enthusiasm for rapid response to wind and solar fluctuations and promoting peak shaving and valley filling. To fully utilize the multiple values of energy storage for frequency regulation and peak shaving, the state encourages renewable energy stations and co-located storage to jointly participate in the market. Currently, some regions are actively carrying out related practices based on local electricity market construction. In February 2023, Shandong Province clearly proposed that the joint entities of renewable energy and co-located storage can independently participate in the medium and long-term and spot market transactions. In the spot market, the charging and discharging curves of co-located storage declared by renewable energy stations will be prioritized for clearing under the conditions of ensuring the safe operation of the grid and prioritizing the consumption of renewable energy. In July 2023, the co-located storage of Shandong Island South Guotou Offshore Wind Power completed the day-ahead declaration clearing in the electricity spot market, becoming the first case of joint market entry for renewable energy and co-located storage nationwide, effectively improving the utilization level and profitability of co-located storage by charging when renewable energy generation is high and electricity prices are low, and discharging during peak electricity demand when prices are high. In addition to the medium and long-term and spot markets, the ancillary service market is also continuously improving, providing more revenue channels for renewable energy co-located storage. For example, Shanxi is establishing a positive reserve ancillary service market, proposing to allow wind and photovoltaic power stations with regulation capabilities to participate and receive compensation.

　Optimize policy recommendations for 'renewable energy + energy storage'.

Overall, the current energy storage technology is not mature, costs are generally high, and the business model is not perfect. There is a need for a deeper understanding of the relationship between renewable energy and new energy storage. In practice, renewable energy co-located storage has exposed practical problems such as increasingly high co-located storage requirements, generally low utilization rates, and poor profitability. However, due to the inherent intermittency, volatility, and randomness of renewable energy, the demand for the power system's regulation capability is becoming increasingly urgent with large-scale integration. In the long run, 'renewable energy + energy storage' remains an important path to promote the high-quality development of renewable energy and support the construction of a new power system, requiring a market-oriented approach to promote the coordinated development of renewable energy and new energy storage.

First, optimize the collaborative development model of renewable energy and new energy storage. Strengthen the innovation of the 'renewable energy + energy storage' model, aiming to meet regulation needs, promote resource sharing, achieve efficient utilization, and reduce enterprise costs. Support the conversion of existing renewable energy co-located storage to independent energy storage, provided that technical conditions and safety requirements are met, and promote new renewable energy projects to prioritize the configuration of energy storage in a co-built and shared manner. Support private enterprises to participate in the construction of new energy storage power stations to stimulate the investment enthusiasm of social capital. Improve the capacity leasing mechanism for energy storage power stations, standardize leasing contract management, utilize the time-space complementarity of different renewable energy power stations, optimize the scope and operation mechanism of energy storage sharing, and avoid phenomena such as resource congestion during peak periods and resource idleness during low periods.

Second, improve the market and price mechanisms for new energy storage. Adhere to a market-oriented approach to promote renewable energy projects to independently configure new energy storage, and improve the enthusiasm for energy storage construction through reasonable price incentives. On the one hand, accelerate the promotion of renewable energy participation in the electricity market, gradually expand the scale of renewable energy generation entering the market, and guide renewable energy power stations to actively configure new energy storage to enhance their self-regulation capabilities through market assessment methods such as deviation quantity and response speed. On the other hand, improve the mechanism for new energy storage to participate in the electricity market, supporting renewable energy and co-located storage to participate in various markets such as medium and long-term, spot, and ancillary services in the form of a consortium, increasing the diversity of market decision-making for co-located renewable energy enterprises. At the same time, improve the price formation mechanism for new energy storage, study the establishment of a capacity compensation mechanism, promote the formation of capacity leasing prices through market competition, and explore scientific and reasonable capacity identification methods for different types of new energy storage.

Third, accelerate the formulation of standards and technological breakthroughs for new energy storage. Adhere to safety bottom lines, accelerate the formulation of relevant technical standards for renewable energy co-located storage, strictly regulate the quality of energy storage configuration, strengthen the safety management of energy storage power stations, and ensure the safe and reliable operation of renewable energy and energy storage power stations. Accelerate the research and development and industrial layout of key technologies, key materials, and key equipment for new energy storage, further reduce the costs of new energy storage. Promote the diversified development of energy storage technology, study large-capacity, long-life, long-duration new energy storage technologies that adapt to the large-scale development of renewable energy, strengthen research and demonstration applications of hybrid energy storage technology, and meet the different needs of the new power system for regulation speed, duration, power, and energy.

Dunhua Electronics is a national software enterprise dedicated to innovative research and development and industrialization in the fields of the Internet of Things and cloud computing. The company actively promotes the smart city Internet of Things with smart lamp posts as the main body, leveraging its deep accumulation in IoT communication technology.
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