Low utilization
However, the issue of low utilization of some new types of energy storage still exists.According to Shu Yinbiao, an academician at the Chinese Academy of Engineering, the utilization rate of new energy storage in China is not high, with the average utilization rate indexes for grid-side, user-side, and mandatory allocation of new energy storage projects reaching 38 percent, 65 percent and 17 percent, respectively.
Grid-side energy storage is distributed at critical points in the power grid, providing various services such as peak shaving and frequency regulation. User-side energy storage refers to storage systems installed on the user side, such as households, businesses, and factories, enhancing the flexible regulation capacity of load-side users.
Huang Hui, director of the energy transition project at Natural Resources Defense Council, a global environmental protection organization, said renewable energy's fluctuations have not been reflected in the market in terms of electricity supply-demand dynamics and price changes due to the limited scale of new energy entering the market.
This leads to relatively poor economic feasibility as much of the renewable energy is allocated but not consumed, he said.
The NEA issued a notice in April titled "Promotion of New Energy Storage Integration and Dispatch Utilization," aimed at standardizing the integration of new energy storage into the grid and promoting efficient dispatch utilization of new energy storage.
The notice outlined specific requirements for grid enterprises, power dispatch agencies, and new energy storage project units.
According to NEA's Bian, the government has released a list of 56 new-type energy storage pilot demonstration projects since the beginning of this year, including 17 lithium-ion battery projects and 11 compressed air energy storage projects, among others. Some of these projects have been connected to the grid, effectively promoting the application of new technologies.
The NEA will continue to encourage technological innovation to support the development of the new-type energy system, Bian added. added.
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