The construction of the 500MW/1GWh energy storage system (ESS) project in Shanxi Xizhou Yuanping Economic and Technological Development zone was launched at the beginning of September. Once completed, it will become the largest single electrochemical shared ESS demo project in China, and its annual output value will be about CNY 300 million. The project aims to provide services for more than 5GW of new energy projects in Shanxi.
“Shanxi Province Renewable Energy Development “14th Five-Year Plan” Environmental Impact Report (Draft for Comments)” proposed that, wind and photovoltaics power should be increased by 10.26 GW and 36.91 GW respectively, and new energy storage would be increased by 4.9 GW during this five-year period.
Possible revenue sources of shared ESS projects in Shanxi include:
- Curtailment reduction
- Capacity leasing to meet the new RE project ESS bundling requirement
- Primary frequency regulation
- Secondary frequency regulation
- Peak regulation
- Reduction of the penalty fees caused by the “Double-Rules” evaluation
- Arbitrage of peak/valley prices in the power market
- Subsidy in certain cities (e.g. Taiyuan City subsidizes 2% of the ESS investment, with a cap of 5 million RMB. )
By July this year, there were 34 ESS projects with a total capacity of 9.1GW/18.9GWh that had completed project filing and planned to kickstart construction this year. (BJX) (CNESA)
