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 !