GeePower® New Energy Industry Knowledge Column
China’s Energy Storage Business is Booming
China’s energy storage business model is becoming increasingly clear. Based on the following points, Energy storage investment is expected to break out in 2019.
The development of new energy power generation has become more and more influential to the Power Grid. At the end of 2017. China’s total generator’s installed capacity reached 1,777 GW, of which the proportion from new energy power generators has reached 16.54%.The installed capacity of new energy power generators has increased from 28 GW in 2013 to 68 GW in 2017, accounting for 50% of all new installed capacity.
The power system structure is increasingly complex, so the adjustment capability needs to be improved. In the first half of 2018, the electricity consumption of the whole society increased by 9.8% year-on-year. In July 2017 and 2018, the maximum load of the power grid maintained a year-on-year growth rate of more than 7%.
At the same time, the auxiliary service mechanism is adjusted, so the rate of abandonment is effectively controlled. In the first half of 2018, the national loss rate of wind power generation was only 8.7%, a decrease of 5 percentage year-on-year. And the loss rate of photovoltaic power generation was 3.6%, a decrease of 3.2 percentage year-on-year.
Market-based ancillary services are promoted throughout the country. It will pave the way for the development of new energy and energy storage. The market-oriented FM mechanism lays the institutional foundation for energy storage to participate in the Grid regulation. As a result, the energy storage business model is enriched, bring great economic benefits. At the same time, it will also improve the capability of the Grid regulation.
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