Description

TABLE OF CONTENTS

Executive summary (2)

New regulations and initiatives discussed this month (7)

Americas (7)

United States (7)

Europe (7)

European Union (EU) (7)

Project updates and announcements (8)

Overview of the 2020 market for utility-scale energy storage projects (8)

Projects announced or contracted this month (9)

Australia & Oceania (9)

Projects commissioned this month (10)

Asia (10)

Tenders this month (11)

Americas (11)

Focus of the month: the Chinese battery energy storage market (12)

Introduction to the electricity markets in China (12)

1. The electricity supply chain in China (13)

1.1. Power generation companies (14)

1.2. Transmission and distribution (14)

1.3. Supply (17)

2. Structure of the ancillary services in China interesting for storage (17)

2.1. Scoring mechanism of Northwest Grid for planned remuneration (18)

2.2. Peak regulation service: a Chinese specificity (20)

2.2.1. Upward peak regulation (Chinese name: ‘Basic peak regulation’) (21)

2.2.2. Downward peak regulation (Chinese name ‘Paid peak regulation’) (21)

3. Current energy storage deployments in China (21)

4. Study of two representative provinces: Qinghai and Jiangsu (22)

4.1. Qinghai Province (22)

4.1.1. Qinghai electricity mix (23)

4.1.2. Pilot project of shared ESS (24)

4.1.3. One-year trial of the Qinghai electricity ancillary service market (26)

4.1.4. Business case of an ESS project for peak regulation service in Qinghai (26)

4.2. Jiangsu Province (27)

4.2.1. Example of a grid-side project: Zhenjiang 100MW-Level grid-side ESS project (27)

4.2.2. User-side projects (27)

4.2.3. Business case: a user-side project for electricity bill reduction in Jiangsu (29)

TABLE OF FIGURES

Figure 1. Utility-scale energy storage projects announced/contracted and commissioned in 2019 and 2020 (ongoing) (9)

Figure 2: China Electricity Mix in 2019 (13)

Figure 6: Electricity supply chain in China (13)

Figure 3 Power Grid of China (15)

Figure 4: Power grid of Inner Mongolia Autonomous Region (16)

Figure 5: Regional grids of State Grid (17)

Figure 7: Overview of the northwest grid (19)

Figure 8: Peak regulation ancillary service division between upward and downward services (21)

Figure 9: Capacity installed, announced, under construction and project quantity in each province (source: CHESS) (22)

Figure 10: Electricity mix in China and Qinghai (23)

Figure 11: Total installed capacity of the past three years (24)

Figure 12: Operation of shared energy storage (25)

Figure 13: (a)Real-time charging and discharging curve of energy-storage power station (b)Daily charge and discharge of Luneng multi-energy complementary storage station (26)

Figure 14: Total discounted costs and revenues for a 10MW/20MWh project in Qinghai for peak regulation service (27)

Figure 15: Total discounted costs and revenues for a 10MW/80MWh project behind the meter in Jiangsu (30)

LIST OF TABLES

Table 1: Example of remuneration points (19)

Table 2: Example of assessment points (20)

Table 4: Solar curtailment rate in Qinghai (Source: National Energy Administration) (24)

Table 5: Electricity prices for industry in Jiangsu (28)

Table 6: Price difference in supply tariff between peak a valley for industrial customers in

Jiangsu (29)

Table 7: Electricity bill reduction revenues of a battery by charging during valley hours and

discharging during peak hours (29)