Thoughts on China’s Energy Storage 2016 2020 · Review of 2011‐2015 ES application 1 • ES in...
Transcript of Thoughts on China’s Energy Storage 2016 2020 · Review of 2011‐2015 ES application 1 • ES in...
Thoughts on China’s Energy Storage
2016‐2020
GAO Peng
Contents
1 ESS Application in China
2 Review of 2011-2015 ES application in China
3 China’s ES market development history
4 ES development during the 13th FYP period in China
0 Mainstream ESS technology in China
• Advanced, high‐capacity electric storage technologies:Storage of electric energy in ≥kW range
TechnologiesTechnologies
Other StorageOther Storage
CharacteristicsCharacteristics
PhysicalStoragePhysicalStorage
Chemical Storage
Chemical Storage
• Pumped Hydro• Compressed Air (supercritical CAES)• Flywheel
• Lead-acid Battery• Li-ion Battery• Flow Battery (Vanadium, Zn-Br)• Na-S Battery
Uses water/air as storage medium No chemical change Mechanical electric energy
Uses chemicals as storage medium
Battery charges/discharges with chemical change/valence change
• Fuel Cell*• Metal-air Battery*
Does not posses “charging" characteristics
E&M StorageE&M Storage • Supercapacitor Fast response, can release large amounts electric power in short times, high number of cycles
Mainstream ESS technology in China
Contents
1 ESS Application in China
2 Review of 2011-2015 ES application in China
3 China’s ES market development history
4 ES development during the 13th FYP period in China
0 Mainstream ESS technology in China
Market size in China
Source:CNESA database,2016
• ES application market size (up to the end of 2015)
Notes: “In Aug. 2016, China’s first molten salt thermal storage project was put into operation.”
Policy status
•ES‐related policies compared with key countries
China Japan Germany US
Policies promoting new energy(including tariff)
Peak/off-peak pricing mechanisms
In progress
Policies supporting ES R&D No system
Capital support for ES project demonstrations
No system
Energy development planning
Policies encouraging distributed generation allocation
Tax breaks on ES systeminstallation costs
Storage electricity price support
Contents
1 ESS Application in China
2 Review of 2011-2015 ES application in China
3 China’s ES market development history
4 ES development during the 13th FYP period in China
0 Mainstream ESS technology in China
Review of 2011‐2015 ES application
• 2011‐2015 review – Three Main Points
1
2
3
Storage technology participated in a multitude of diverse project demonstrations
Demonstrations became increasingly focused on commercialization, applications became clearer
After a period of sustained growth, potential for large-scale commercial applications of storage technology has emerged
Review of 2011‐2015 ES application• ES in a multitude of diverse project demonstrations 1
2013 2014 2015Accumulated capacity
(MW)Share of market
(%)Accumulated capacity (MW)
Share of market (%)
Accumulated capacity (MW)
Share of market (%)
Li‐ion 36.6 59 63.3 55 80.5 57
Lead Acid 13.9 22 35.8 31 39.8 28
Flow Battery 8.7 14 11.9 10 13.9 10
Super Capacitor 3.1 5 4.9 4 5.9 4
Notes: Pumped hydro and thermal storage projects are not included.
49%
44%
57%
5%
Renewables Integration
35%
100%
Ancillary Services Distributed Energy & MicrogridsT&D
Chinese MarketThrough 2015
Flow Battery
Lead-acid Battery
Li-ion Battery
Supercapacitor
3%
97%
1%6%3%
• Multiple technologies coexist
• Technologies displayed distinct advantages in different applications
• Trend in multi‐technology combined applications
• Costs continue to fall
• R&D into new technologies persists
Review of 2011‐2015 ES application• Demonstrations became increasingly focused on commercialization, applications
became clearer2
2011 2013 2015
• National Wind/PV/ES demonstration project
• BaoQing ES demonstration in Shenzhen city
• Redox flow BESS in Grounding‐Bull‐Rock wind farm
• DongFuShan island Microgrid project
• ES&EV demonstration project in Qingdao city
• … …
Project Demonstrations: Verify technology and results
Commercial Demonstrations:Explore commercial models
National/State Grid sponsored
Each project ≤5MW
Verify technology/results
Not economic
• Ray Power frequency regulation ES project
• HeFeng North county wind farm ESS project
• Luxi island Microgrid pilot project
• Nanji island Microgrid pilot project
• Rooftop PV/NAS BESS in Nanjing city
• … …Industry sponsored
Increase capacity/multiple technologies
Explore business models
Investment recovery in 5‐7 years
Year:
China ES application cases• World’s largest Wind/Solar/ES demonstration project2
Zhangbei Wind/Solar/Energy Storage Project
Investor/Owner SGCC
Capacity Wind power: 98.5MW, Solar power: 40MW; Energy storage: 14MW
ESS technologies 12MW Li-ion battery and 2 WM vanadium flow battery
Application Fluctuation smoothing, peak shaving, frequency regulation
China ES application cases• China’s first rooftop PV/NAS BESS demonstration project2
Crouching Bull Rock Wind Farm Demonstration
Investor/Owner NR Electric & NGK
Capacity Rooftop PV power: 5.8MW; Energy storage: 1440 kWh
ESS technologies Sodium Sulfur(NAS) battery
Application Peak shaving and load shifting
China ES application cases• World’s first MW‐level thermal power connected storage FR project2
Peking Shijingshan Thermal Plant ES FR Project
Investor/Owner Ray Power
Capacity Energy storage: 2MW/500kWh
ESS technologies 2WM/500kWh lithium iron phosphate battery
Application Frequency regulation, AGC
China ES application cases• ESS application in large‐scale Microgrid pilot projects2
Nanji island Microgrid Pilot Project
Investor/Owner Zhejiang Electric Power
Capacity Wind:1000kW; Solar: 600 kW; Diesel: 1.8MW; Energy storage: 3 MW.
ESS technologies 2WM/4MWh lithium iron phosphate battery;1MW/15s super capacitor
Application Microgrid control, including renewable regulation and V/F control
Luxi island Microgrid Pilot Project
Investor/Owner Zhejiang Electric Power
Capacity Wind:1560 kW; Solar: 300 kW; Energy storage: 2.5 MW.
ESS technologies 2WM/4MWh lead carbon battery;0.5 MW/15s super capacitor
Application Microgrid control, including renewable regulation and V/F control
China ES application cases• Potential for large‐scale commercial applications of storage technology has emerged3
Notes: Pumped hydro and thermal storage projects are not included.
China ES application cases• Potential for large‐scale commercial applications of storage technology has emerged3
Generation‐Side Ancillary Services User‐Side
Wind/Solar + Storage Storage + thermal power coupling Rooftop PV + storage
Application
• Peak shaving
• Output tracking
• Fluctuation smoothing
• FR, load‐shifting
• FR ancillary services
• Manage electricity bill
• Smooth out fluctuations
• Back‐up electricity
Profit Points
• Curtailment limits electricity• Grid power purchasing
commitments• Reduces risk of grid
audits/penalties
Increases ancillary services capabilities, daily compensationincreases profits
• Save on peak/off‐peak price differences
• Increase PV generation profits
Main Applications and Profit Points
Contents
1 ESS Application in China
2 Review of 2011-2015 ES application in China
3 China’s ES market development history
4 ES development during the 13th FYP period in China
0 Mainstream ESS technology in China
China’s ES market development
2000 ‐ 2010 2011 ‐ 2015 2016 ‐ 2020
Technology Verification
Predicted by the end of 2020
Normal scenario 14.5GW capacity
Ideal scenario 24.2GW capacity
• Policy support increasing
• Market mechanisms straightening out
• Multiple fields are collaborating• Installed capacity quickly increasing
• Business models are being established
By the end of 2010Capacity reached 2.4MW
(11 projects)
• R&D
• Demonstrations to verify technology
By the end of 2015Capacity reached 141.1MW
(136 projects)
• Demonstrations began
• Explore applications
• International market expanded
• Clear application value
Project Demonstrations
Early StageCommercialization
Notes:
Pumped hydro Storage is not included.
Contents
1 ESS Application in China
2 Review of 2011-2015 ES application in China
3 China’s ES market development history
4 ES development during the 13th FYP period in China
0 Mainstream ESS technology in China
ES development in 13th FYP• Interest in the ES has increased, the industry is poised for rapid development
Energy Planning
• “13th 5 Year Plan Outline”
• “Action Plan for Energy Development Strategy(2014‐2020)”• “Made in China 2025”
• “Action Plan for Innovation in the Energy Revolution(2016‐2030)”
Power System Reforms
“CPC Central Committee Opinions on howto Intensify Power System Reforms”
Renewables New Energy Vehicles
The “Internet of Energy”
“Guiding Opinions on the Implementation ofthe ‘Internet+’ Smart Energy Development”
ES development in 13th FYP
User‐sited application models already show profitability;Further assessment shows additional untapped revenue streams
Peak/Valley PriceArbitrageEnergy use/fee management
Participate in DR/ Peak pricing
Participate in FR/ load shifting
Other value‐addingservices
• Launching ES policy will drive industry development
Thanks for Your Attention !