On May 13, the National Energy Group issued a bid for the preparation of a 100MWP photovoltaic desertification energy storage bidding project.
Inner Mongolia, where the project is located, is the largest province in China in terms of installed wind power capacity. Parity is imminent. Taking into account the project income, the previous “scenery” going south has begun to return to the DPRK. Inner Mongolia, Gansu, Xinjiang and other places have also ushered in the 2.0 era of wind power photovoltaic base construction.
According to incomplete statistics from "Energy" magazine, currently, the total scale of large-scale wind power projects in the Three Norths region is close to 30GW. In light of the lessons learned from the grid disconnection and the shutdown of wind turbines caused by large-scale wind and solar construction, the “energy storage” that was previously instigated has regained its advantages in auxiliary services such as peak shaving and frequency modulation and its function of smoothing the volatility of new energy. Developers favor.
However, unlike the explosive growth of grid-side energy storage in 2018, the main thrust of this energy storage recovery comes from new energy sources.
After Jiangxi Province issued the "Jiangxi Province New Energy Industry High-Quality Leap-forward Development Action Plan (2020-2023)" in January this year, it officially proposed to promote the development of the energy storage market and support wind power and photovoltaic power generation to be equipped with energy storage, Inner Mongolia, Xinjiang, Henan, Hunan, Anhui and other provinces have successively proposed development models for new energy distribution and storage in the form of government documents.
Under the promotion of local governments, the protagonists of wind power and photovoltaic construction in the Three North regions such as National Energy Group, Huaneng, and State Power Investment Corporation have set off a new energy-side energy storage development trend.
energy storage recovery
On March 27, the People's Government of Chayouzhong Banner, Inner Mongolia and China Shipbuilding Industry Corporation New Energy Co., Ltd. held a contract signing ceremony for the solar thermal and energy storage base project.
The latter will plan to build a million-kilowatt large-scale solar thermal and energy storage base in Kulunsumu, Chahar Right Zhongqi, with a total installed capacity of 1 million kilowatts and a total investment of about 25 billion yuan; an initial investment of 5 billion yuan is planned to start 20 Construction of 10,000-kilowatt solar thermal and energy storage demonstration projects.
Within a month or so, more than a dozen new energy development companies, including Datang Group, National Energy Group, and Jingneng Group, have invested hundreds of millions of dollars to build integrated solar, wind and storage projects in Inner Mongolia.
Inner Mongolia is not the only province that intends to develop energy storage.
On March 23, the Development Department of State Grid Hunan Electric Power Co., Ltd. issued the "Notice on Doing a Good Job in the Primary Selection of Energy Storage Project Sites" (hereinafter referred to as the "Notice"). According to the notice, through multi-party coordination, 28 companies have pledged to build 388.6MW/777.2MWh energy storage equipment for supporting new energy projects, which will be put into operation simultaneously with wind power projects, with a configuration ratio of about 20%.
Under the promotion of government forces and the enthusiasm of capital, energy storage is like tiny flowers blooming next to the big tree of new energy.
The marriage of new energy power generation and energy storage is recognized as a promising application in the industry. The volatility and randomness of wind power and photovoltaics have brought great difficulties to the power balance of the traditional power system. After a large number of new energy sources are connected to the grid, thermal power peak shaving, gas generators, pumped storage power stations or energy storage are required. adjust.
Under the general trend of reducing thermal power capacity and transforming traditional energy to clean energy, energy storage was once considered the best match for new energy.
But at the same time it was accompanied by a lot of controversy. Three years ago, Lu Yichuan, the deputy chief engineer of Longyuan Power, wrote an article, “Whether it’s various battery forms of chemical energy storage or compressed air energy storage, the cost has remained high so far. The most optimistic estimate is the process of accessing one kilowatt-hour of electricity. , Its cost is not less than 0.6 yuan. To be able to withstand such a cost demand, under the current market mechanism conditions, if not without, it is very small."
In the past three years, the cost of energy storage has dropped significantly. According to a report released by Bloomberg New Energy Finance, the levelized cost of energy (LCOE) of lithium-ion battery energy storage systems has reached a benchmark price of $187/MWh in 2019, which can be compared with coal-fired power generation facilities or natural gas power generation in terms of cost. Facilities competed, and the cost fell by 76% compared to 2012. The levelized energy cost (LCOE) of the energy storage system with a continuous discharge time of 4 hours has further dropped to US$150/MWh in the first quarter of 2020.
Despite this, the development of energy storage has not completely bypassed the “question of cost”. Some insiders analyze that after the era of parity, the economic accounts of new energy projects will be difficult to calculate. Even with subsidies at this stage, the cost recovery period of new energy storage is likely to be extended by about ten years.
Can the energy storage industry make a difference in the government's strong implementation?
The "Energy Storage Industry Research White Paper 2020" will be released soon. This publication that records the growth trajectory of the energy storage industry has been published for nine consecutive years. According to its data released in 2019, as of the end of 2018, China's cumulative installed capacity of energy storage projects in operation was 31.3GW, accounting for 17.3% of the total global market. Among them, the cumulative installed capacity of pumped storage is the largest with 29.99GW; the cumulative installed capacity of electrochemical energy storage ranks second with 1072.7MV, which is 2.8 times the total cumulative scale of operation in 2017, and the newly added scale of operation is 682.9 MV, an increase of 464.4% year-on-year.
From the perspective of application distribution, the user-side field has the largest cumulative installed capacity of 264 MW, accounting for about 50%, and the industrial structure has initially formed; the power generation side and the grid side are ranked second and third respectively, with a share These are 36% and 14% respectively.
The explosive growth of the energy storage industry in 2018 came from the grid side. That year, the proportion of newly installed energy storage capacity on the grid side exceeded that on the user side for the first time, ranking first, accounting for 42%.
At that time, the main reason for the large-scale development of user-side energy storage in my country was its clear business model and short investment recovery period, generally less than 8 years. From a profit point of view, through the peak-to-valley spread method, user-side energy storage projects have reached the break-even point in some provinces.
But this round of growth did not last too long. After entering 2019, the energy storage industry has ushered in a new test. After the cost of transmission and distribution cannot be counted, the construction of grid-side energy storage is temporarily suspended; after two rounds of electricity price cuts, the peak-to-valley price difference is not guaranteed, and the user-side energy storage investment payback period is extended Wait.
Energy storage, which could not find a new growth point for a while, once again fell into a period of slow growth.
After experiencing the torture of "seeking technological progress" and "cultivating business models", the energy storage industry has ushered in its tenth year of steady implementation. This year, the previously controversial new energy side energy storage has become an official distribution stipulated by many governments.
The new energy power generation side may not be the only destination for energy storage, but more and more power generation central enterprises are issuing energy storage tenders, which may be a good signal for this industry that is still in the early stages of commercialization.