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Major good news for energy storage industry: Micro-grid tariff and subsidy program will be launched
Released on: 2015-06-18 Content Sources: Jinguan Electric

Micro-grid tariff and subsidy program will be launched 


Energy storage industry is likely to usher in a breakthrough point before explosive growth. It is learned from the 2015 International Conference on Energy Storage organized by China Energy Storage Alliance (CNESA) that the National Energy Administration will introduce micro-grid tariff and subsidy program in the second half year and the program is currently under exposure discussion.


According to authorities, the draft proposed to grant 70% of system subsidies to micro-grid project and in principle, the subsidy will be granted to project owners. Specific power price depends on micro-grid and off-grid system. The details of the draft are still under discussion.
Industry analysts said that as energy storage batteries accounted for the largest proportion in micro-grid investment, it is believed that energy storage energy will benefit the most after the introduction of subsidy policy. At present, China's micro grid is still in the demonstration stage, and most of the existing projects are 100% invested by the government to support electricity application in poor rural areas. The launch of micro grid support policy will be conducive to the commercialization of micro grid and will benefit storage battery producers and micro grid investment operators.
Smart micro grid concept refers to a system of using new energy and energy storage technology as well as traditional energy to balance peaks and valleys, thus providing intelligent power supply. Smart micro grid has two mode and one of which is independent power supply system which is completely off the grid. The other mode is to have access to power grid as a distributed energy.
In the industry view, the micro-grid has high cost. As the power supply system is invested by the enterprise, it is difficult to form economies of scale. The enterprise will only be interested in the investment of micro grid when policy support from the state is available.
In addition, the cost per kw h of energy storage currently is about 1.5 yuan / watt. Immature technology leads to commercial bottleneck which is difficult to break. However, according to Yu Zhenhua, chairman of China Energy Storage Alliance, "since this year, a number of energy storage projects have been put into operation. The darkest time for the industry is over. It will take only 3 years to achieve changes from quantity to quality and usher in the era for the development of energy storage. " 

Positive changes in the industry

In addition to favorable policies, there have been some positive changes in the industry itself. As of the end of 2014, total installed capacity of energy storage projects applied in the power system in China was 84.4MW, accounting for 10% of global energy storage capacity. Among which, the new installed capacity is 31MW with an annual growth rate of 58%, up by 14% compared with the previous year, showing a significant increase. According to forecasts, by 2020, China's energy storage market capacity will reach 67GW and industrial blowout is in sight.
Leading enterprises are also making attempts, for example, Tesla released household energy storage system "energy wall", Sungrow and Samsung jointly developed lithium-ion battery for power use, energy storage converter and energy storage system development.
According to Chairman Yu Zhenhua, in China, energy storage has seen market opportunities and business model in distributed generation and micro grid, power auxiliary services, customer side demand response and electric vehicle interconnection fields. In particular, under the energy Internet layout, energy system will achieve digitalization and energy storage will play the key role as a "energy chip" to asst energy management.

New features of industry development 

In this international conference on energy storage, CNESA also issued a "White Paper on Storage Industry Research 2015", revealing new features of the development of energy storage industry.
From the geographical point of view, the United States occupies the largest proportion of energy storage projects in terms of installed capacity.
From the application distribution point of view, energy storage projects are mainly concentrated in renewable energy grid, auxiliary services, power transmission and distribution and distributed micro grid and so on.
From the technical distribution point of view, sodium-sulfur battery has the largest proportion in terms of installed capacity, which is 40%, followed by lithium-ion batteries and lead-acid batteries.
From the project new model point of view, in the past two years, there are three new models: Financing lease mode, retail mode and electric vehicle charging mode.