Overview of the Power Energy Storage Industry

Overview of the Power Energy Storage Industry

Analysis of Technology, Applications, Policy, and Market

1. Overview: China’s Renewable Energy Integration Requires Energy Storage Facilities

The integration of renewable energy in China is becoming increasingly challenging, mainly reflected in the following aspects:

High curtailment rates for wind and solar power

• In 2015, more than 30 billion kWh of wind power was curtailed, with a curtailment rate close to 20%
• In 2015, 5 billion kWh of solar power was curtailed, with a curtailment rate of 10%
• The curtailment situation for wind and solar has continued to worsen

Expanding installed capacity of wind and solar power

• Starting in 2015, annual newly installed photovoltaic capacity exceeded 36 GW
• Existing wind power capacity was about 3.5 times that of photovoltaic capacity, while annual additions were roughly on par with photovoltaics

Significant value of wind and solar power

• Hundreds of billions of kWh each year, representing value in the tens of billions of yuan
• An important component of the national energy strategy

Comparison of renewable energy integration approaches

• Ultra-high-voltage (UHV) transmission
• High investment cost and demanding construction requirements
• Current UHV transmission lines are approaching saturation
• Grid infrastructure in new energy production regions is relatively weak
• Power market reform
• China’s electricity market reform is still at an early stage
• Local consumption capacity in new energy production regions remains limited
• Power energy storage
• Plays a clear role in improving stable grid operation
• Serves as a complement to UHV transmission lines
• Requires both technological and capital investment

Stages of power energy storage application

Main uses of power energy storage

Parameter analysis of power energy storage application scenarios

2. Main Technology Pathways for Power Energy Storage

Several major forms of power energy storage

• Mechanical energy storage
• Pumped hydro storage
• Compressed air energy storage
• Flywheel energy storage
• Electromagnetic energy storage
• Superconducting magnetic energy storage
• Supercapacitor energy storage
• Electrochemical energy storage
• Lead-acid batteries
• Flow batteries
• Sodium-sulfur batteries
• Lithium batteries

Schematic illustrations of energy storage technologies

Comparison of energy storage technology characteristics

3. Engineering Application Scenarios for Power Energy Storage

Typical engineering application scenarios for power energy storage

• Wind-solar hybrid storage
• Multi-technology integrated power energy storage
• Energy storage technology and virtual power plants
• Charging infrastructure

Wind-solar hybrid storage

• Wind and photovoltaic power have relatively poor reliability
• Helps solve off-grid accident issues
• Long storage duration / 4–6 hours
• High investment cost and poor economic returns

Multi-technology integrated power energy storage

• Requires a high degree of matching with application scenarios
• High technical requirements
• Mainly at the research and demonstration stage
• A key direction for the future

Virtual power plants

• Currently applicable mainly overseas
• Distributed energy resources
• Energy storage devices
• Power generation forecasting
• Load forecasting
• Electricity trading platforms

Charging infrastructure

• Distribution network voltage
• Three-phase balancing
• Load balancing
• Harmonic mitigation

4. Overview of Power Energy Storage Policies in China and Abroad

International policies

• United States: mandates and subsidies coexist
• Tax incentives for residential users
• Europe and Japan: subsidies have been implemented

Domestic policies

• Policy guidance
• Pilot and review stage

Policy trends

• Remote areas
• Microgrids and smart grids
• Distributed renewable energy

5. Power Energy Storage Market Forecast

• Grid peak shaving remains the main application (currently about 2.8 GW)
• Forecast grid-connected capacity of 310 GW by 2050
• Forecast energy storage industry revenue of USD 68 billion by 2025
• Battery market revenue projected at about USD 8.3 billion by 2025
• 21.8 GW of new wind-solar-storage capacity additions by 2025
• Microgrid energy storage capacity projected to grow from 800 MW to 150,000 MW by 2025