Domestic large-size storage market: compulsory installed capacity is currently an important driving force for the development of China’s energy storage. In the early days, the market of new energy vehicle was driven by government policy. As for bus procurement, the government has strong voice in making decision on funds and traffic control and other relative aspects. Therefore, on the early stage of new energy vehicle market, government policy serves as the driving force. Similarly, at present, there is no established business model in China’s energy storage market, where the development cost is high, revenue source is limited, and the demand for household storage is low.
These factors limits the development of the energy storage market to a certain extent. In this context, a number of provinces issued a relevant policy on installed capacity of new energy power generation, most of which requires 5% to 20% of the proportion of energy storage and 2 hours. Under the policies, compulsory installed capacity has become an important driving factor in the development of the current energy storage market.
Marker penetration rate improves gradually, and the market will continue to maintain high growth. At present, the compulsory installed capacity of new energy power generation is mainly for photovoltaic and wind power projects. If the proportion of compulsory energy storage of wind and PV power gradually increase from 10% to 20% by 2025 , the average hours of energy storage increase from 2 hours to 2.5 hours, and the penetration rate of compulsory storage of wind, PV and electricity will be 15%, 20% and 25% from 2023 to 2025, only the large-size installed capacity of power generation side will reach 6.9GWh, 16.9GWh and 25.1GWh. That will maintain high growth in the next three years.
Domestic large-size storage market: shared energy storage power station may become a new way for domestic energy storage to participate in auxiliary market services. Shared energy storage power station (or independent energy storage power station) is the dominant role in participating in the power dispatching. It is also a new business model of energy storage for coping with the single revenue model of current power generation. At present, China’s independent energy storage projects mainly are capacity leasing, capacity tariffs, spot trading of power and auxiliary services and other revenue channels. The specific business model is still being explored. With the establishment of the dominant role of independent energy storage market and the acceleration of the marketization of power auxiliary services, the shared energy storage power station model is expected to become the new development way of domestic energy storage business in the future.