Recently, market reports have speculated that, driven by new energy development, power grid companies may relax the 95% renewable energy consumption red line to accommodate more new energy sources.
The "95% consumption red line" refers to the requirement that the utilization rate of photovoltaic and wind power generation should not be less than 95%, meaning the "abandonment rate" of wind and solar power should not exceed 5%. This was prevented the proliferation of new energy installation projects, which could lead to wasteful use of resources and capital.
By the end of 2023, the installation of new energy sources in many provinces is expected to reach the red line, and there is a macroeconomic need to accelerate the progress of new energy.
Relaxing the consumption red line means that the "mandatory storage" will become obsolete, reducing the installation capacity on the grid-side, which is a negative aspect. However, from market perspective, energy storage should demonstrate its actual value, mainly derived from the new power system and the marketization of electricity.
And the installation of renewable energy sources will surge, accelerating electricity marketization. Consequently, in the construction of an integrated "source-grid-load-storage" new power system, the demand for energy storage will also increase.
In early November 2023, the General Office of the National Development and Reform Commission and the Comprehensive Department of the National Energy Administration issued a notice to accelerate the construction of the electricity spot market, mentioning the acceleration of the participation of various types of power sources in the electricity spot market. Under market-oriented electricity, more new energy access will inevitably lead to higher electricity price differences and more valuable flexibility adjustment resources.
On the other hand, to cope with the impact of a high proportion of renewable energy grid integration, the revenue from the frequency regulation market for energy storage will also increase. When the electricity market achieves true marketization, allowing electricity participants to decide whether to deploy energy storage.
The relationship between energy storage and the new power system is worth exploring.
Currently, the main factors limiting the development of energy storage are concerns about safety and the lack of economic viability.
Energy storage on the grid-side, relying on the "mandatory storage" policy, has a low utilization rate; industrial and commercial energy storage has a single profit model, overly dependent on peak-valley arbitrage.
Although energy storage technology still faces some challenges, with continuous technological progress and gradual policy improvement, energy storage technology will play an increasingly important role in future energy transformation and sustainable development.
Source: Energy Storage Hot List
