Beijing Energy Club
Home 〉〉Events 〉〉Event Detail

Energy Storage Pricing: Method and Mechanism

Publisher:能源俱乐部     Time:Mon Dec 10 13:28:44 CST 2018

Energy storage is an important part of the modern energy system and one of the critical supporting technologies for smart grid. The energy storage industry has been born and driven primarily due to higher requirements from mass development of renewable generation and connection of renewable electricity onto power grids on flexibility of the electric power system. Energy storage systems have extensive applications in the electric power system, from generation, through transmission and distribution, to consumption and improve grid safety, reliability and flexibility. It is regarded that there are broad development opportunities and a bright future for energy storage.

Recent years have witnessed an increasing number of energy storage projects and a decreasing cost of applying energy storage both at home and abroad. China alone has over 100 energy storage projects under construction. However, there are still many challenges for energy storage in China, some due to immaturity of technology and some due to lack of business models. Other challenges include lack of supporting policies such as systematic pricing standards and fiscal guidelines for energy storage and difficulty for energy storage to realize added values because of rigidity of electricity price formation mechanism while China is just in the initial stage of electricity market reform.

In comparison, EU countries, Japan and the U.S. have fairly good market-based energy storage pricing mechanisms. Development of the energy storage industry in these countries has benefited from falling battery costs, open electricity pricing mechanisms, high end-use retail electricity prices, large quantities of renewable electricity connected to power grids, and reasonable revenue for energy storage from participation in peak shaving, frequency regulation and other auxiliary services.

On the occasion of the 8th anniversary of its foundation, BEC, in joint efforts with ADB and China Energy Storage Alliance (CNESA), held an international seminar on energy storage pricing. Experts invited from the U.S., Germany, the U.K., and Japan discussed international energy storage pricing methods and mechanisms with Chinese experts on electricity market and energy storage marketization. Together, they made suggestions and recommendations on energy storage pricing policies in China in the context of its electricity marketization reform.

Address: 469 No. 54 Sanlihe Road, Xicheng District, Beijing Post: 100045
Copyright(C)2013-2015 All Rights Reserved Beijing ICP 13005732