The current situation and analysis of new energy storage power stations participating in the electricity market

　　The new energy storage power station is an important technology and basic equipment supporting the new power system. New energy storage power stations (hereinafter referred to as "energy storage power stations") mainly refer to non-pumped storage energy storage power stations with large power levels and excellent comprehensive performance, which play an important role in promoting energy transformation and ensuring energy security.

　　How to promote the commercial application of energy storage power stations is an issue that has been jointly explored by the world in recent years, and how to participate in the electricity market and make profits has become the key to its commercial application. SES Power has nearly 20 years of experience in energy storage power stations, energy storage systems, energy storage lithium batteries, inverters, photovoltaic power generation and other products, and has launched 12V100Ah, 12V200Ah, 24V100Ah, 24V200Ah, 36V100Ah, 48V50Ah, 48V100Ah, etc., 12V30Ah, 12V50Ah car starter batteries using high-performance rate lithium battery A123 (the maximum peak current can reach 1500A). It can be said very sincerely that the competition in this market is more intense than that of electric vehicle batteries. Many customers are very concerned about cost performance. SES Power takes advantage of the price advantage of echelon batteries to make SES Power’s customized lithium-ion battery packs in order to ensure performance, to meet the needs of customers who are discerning enough about prices. The following is a brief description of the current status of energy storage power stations by senior engineers from SES Power:

　　A: What are the modes for energy storage power stations to participate in the electricity market?

　　Participating in the electricity market is a common energy storage business model. Countries with relatively developed electricity markets have passed legislation to determine the independent market subject status of energy storage power stations, allow energy storage power stations to fairly participate in various market segments, improve market mechanisms and formulate a pay-for-effect compensation mechanism that reflects the value of various resources to provide energy storage facilities The system guarantees that the power station and other resources will bid on the same stage fairly.

　　The types of energy storage power stations participating in the power market mainly include electricity market, auxiliary service market and capacity market, giving full play to the comprehensive value of energy storage and realizing multiple incomes. The U.S. Energy Information Administration (EIA) reports that by the end of 2020, U.S. utility-scale (capacity greater than 10,000 kilowatts) energy storage systems will account for 59% of the total capacity for frequency response, for ramping or the reserve capacity accounted for 39%, and the capacity participating in the electricity spot market accounted for 37%.

　　The capacity electricity fee model refers to the two-part electricity price implemented by the pumped storage power station to compensate the capacity of the energy storage power station. Most pumped-storage power stations implement a two-part electricity price. The capacity electricity price is used to compensate for the operating cost of the power station, and the electricity price is used to compensate for the pumping loss (4 kWh of electricity can be pumped to generate 3 kWh of electricity).

　　The sharing mode is mainly that the energy storage power station configured in the new energy collection station participates in the peak shaving auxiliary service market to shave peaks for multiple new energy stations. In order to maximize the peak shaving function of the energy storage power station, under certain market trading rules, the energy storage power station is allowed to adjust the peak load for other new energy stations to achieve resource sharing across the entire network. After the security check, the dispatching agency will call in order according to the clearing result of the market transaction.

　　The capacity leasing/splitting sales model is to purchase and lease the capacity of an independent energy storage power station by a single or multiple social third parties, and share the investment and construction cost of the energy storage power station. The difference between this mode and shared energy storage lies in whether third parties such as the owner of the new energy station have the asset ownership or exclusive right to use the fixed capacity of the energy storage station. In areas where it is stipulated that new energy needs to be equipped with energy storage, if it is more economical to purchase or lease an independent energy storage power station than to invest in the construction of energy storage for the new energy station itself, this model has certain development prospects. Owners such as new energy power stations can purchase or lease a certain capacity of independent energy storage power stations to meet the requirements of energy storage configuration at a lower price.

　　B: The application of energy storage power station needs to be strengthened in the following aspects:

　　(1) In terms of development planning, the next step is to focus on clarifying the layout of energy storage power stations based on the actual needs of the power system, especially coordinating power grids, pumped storage and various other flexible resources, incorporating energy storage power station planning into power grid planning, and guiding energy storage power stations. Rational layout and orderly development of power stations.

　　(2) In terms of market access, the identity and access conditions of energy storage power stations participating in the spot electricity trading market have yet to be clarified, and the trading rules have yet to be improved. The allocation of energy storage has become an important condition for the priority development of new energy in some regions, and the application scope of new energy allocation of energy storage needs to be expanded.

　　(3) In terms of price mechanism, the electricity price policy for energy storage power stations is lacking. In the process of building a new power system, it is difficult for the energy storage power station to ensure the safety of the power system and the reliable supply of power from the market. At present, the development of such energy storage requires relevant support policies.

　　C: How to promote energy storage power stations to participate in the electricity market in stages

　　The first stage: Under the current electricity market environment, improve the transaction mechanism of the auxiliary service market, give full play to the advantages of the dynamic response technology of energy storage power stations, and focus on improving the competitiveness of energy storage power stations in the auxiliary service market. In order to meet the needs of high proportion of new energy and high proportion of power electronic equipment connected to the power system, establish a compensation mechanism that reflects the value of resources and pays according to the effect, and give full play to the technical advantages of energy storage power stations such as fast response speed and flexible layout, in order to mobilize energy storage. The power station system regulation ability creates market conditions.

　　The second stage: the primary stage of the electricity spot market, improve the electricity energy trading rules, give full play to the ability of energy storage power stations to adjust across time, and focus on improving their profitability in the electricity spot market. On the one hand, the market mechanism should be improved to allow all kinds of resources including energy storage power stations to participate fairly in the electricity spot market; The energy power station participates in the peak regulation of the power grid, takes advantage of the marginal cost of new energy is basically zero, and joins the new energy to participate in the spot electricity transaction.

　　The third stage: the mature stage of the electricity spot market, expand the application of new formats and new models of energy storage power stations, and focus on enabling energy storage power stations to play multiple values in multiple markets. When the electricity spot market matures, it will replace the peak shaving auxiliary service market. The energy storage power station can fully participate in the electricity market, auxiliary service market and capacity market, and provide adjustment services on different time scales. When designing the market mechanism, the value of energy storage capacity and electricity should be fully considered, allowing energy storage power stations to participate in multiple markets and use time-sharing to achieve multiple values. New formats and new models of energy storage power stations, such as smart energy and virtual power plants, should be expanded to realize the diversified development of energy storage power stations.

　　Of course, with the era of 5G high-speed communication, the development of energy storage power stations will inevitably become more data-based, intelligent, and visualized, especially in the new energy power generation industry, this trend is very obvious. SES Power expects unmanned energy storage plants to appear in the near future.