New business opportunities are set to emerge in Taiwan region's energy storage market
On March 3, 2022, the Xingda Power Plant in Taiwan region failed to fill insulating gas in accordance with standard procedures due to operator error, resulting in the inability of nine generating units to send power, and the power output capacity was instantly reduced by 694 MW. One second later, the north-south power grid in Taiwan region was disconnected and the frequency of the southern power plant dropped sharply, causing a large-scale power outage, affecting a total of 5.49 million electricity users in Taiwan region, which was the sensational Xingda power plant shutdown accident at that time.
A year later, on March 3, 2023, there was also an accident on the same day when the generator set jumped out, and the power output capacity was instantly reduced by 640 MW, but because of this, a 150 MW battery energy storage system (BESS) had been installed in Taiwan region to quickly dispatch power through the energy storage system, and in the end, no user was affected by the power outage. In the same power outage, the results can be said to be very different.
Battery energy storage system (BESS) is a key indicator of grid intelligence.
Li Dasheng, convener of the Taiwan region Energy Storage Alliance, pointed out that the installation of battery energy storage systems (BESS) for frequency modulation in 2022 is less than 30MW, and the emergency start generator alone cannot be saved, causing a large-scale impact of power outages. BESS, which has built 150MW in 2023, is the main cause of the successful rescue of the power grid accident and ensures the safety of electricity users throughout Taiwan region. The energy storage system output full power in just 10 seconds, accounting for 30% of Taipower's dispatched power source, successfully preventing a 600 MW power outage, and witnessing the key effect of BESS in assisting the power grid and stabilizing power.
Taiwan region's energy policy has driven the rapid growth of the energy storage industry.
Renewables are weather-dependent, which tends to form a "duckcurve", a time imbalance caused by the curve of peak load and power generation in a day. Peak demand occurs after a period when renewable energy is unavailable and must be addressed through the introduction of energy storage. Taiwan region has a complete energy storage industry supply chain, complete supporting facilities around the energy storage industry, and the support of energy policies, which is expected to drive the rapid growth of Taiwan region's energy storage industry.
Lee explained that the power grid can be roughly divided into "base-load unit" and "tip-load unit", base-load unit by nuclear power generation, thermal power generation and other power, slow start-up characteristics of the unit to serve; tip-load unit by the start-up of the fast hydro units, gas units to serve, the original renewable energy accounted for a small proportion of the time, as long as attention to the load side of the balance can be, but when renewable energy accounted for a high percentage of the time, and the priority of the use of green power, power supply and load side changes at the same time will become extremely unstable, therefore, the need for a more rapid response to replace some of the storage system. However, when the proportion of renewable energy becomes high and green power is prioritized, the power supply and load side will change at the same time, and the power grid will become extremely unstable, so a more responsive energy storage system is needed to replace some of the top-loaded units. Taiwan region's energy policy goal is to reach 20% of renewable energy power generation in 2025, when renewable energy power generation to reach 27G, according to the power plant needs to be set up 10% of the standard backup capacity, when renewable energy to reach 27G, energy storage system should also be supporting the construction of up to 2.7G, so it is necessary to actively popularize the construction of the energy storage system, in order to avoid affecting the stability of the power supply in the future.
Talking about the market size of the energy storage system, Mr. Li Dasheng believes that it can be seen from several aspects.
First, in the event of an emergency, real-time power supply can be stabilized grid storage automatic frequency control (AFC) auxiliary service energy storage system, the current Taiwan region Power Company plans to build 1,500MW of AFC auxiliary service in 2025, and in 2030 to reach 5,500MW, the 1M construction fee of about NTD (the same below) 30 million yuan, the economic scale of 165 billion yuan.
Secondly, the terms and conditions for large power users stipulate that large power users have the responsibility to set up renewable energy devices with a contracted capacity of 10%, and there are about 506 large power users in Taiwan region with more than 500KW (kilowatts), and it is estimated that there is more than 500M of potential for energy storage, with an economic scale of 20 billion yuan.
In addition, the energy storage system can store renewable energy during the day, to provide nighttime production of renewable energy power, Taiwan region has many electronic factories need to rely on energy storage to meet the requirements of the international RE100 for the supply chain, up to 4.8GKWh in 2020, the nighttime power consumption is about 1/3, calculated at 1.6GKWh, about the need to use 1.6G of the energy storage system, the future scale of the economy up to 64 billion yuan.
In the electric vehicle part, with the electric vehicle market share increase, need to install charging piles and energy storage system in the community building first, the whole Taiwan region about 1G of energy storage demand, the economic scale reaches 40 billion yuan.
The total demand for the above four energy storage systems is estimated to create an economic scale of 280 billion RMB.
The development of energy storage inverter technology brings new business opportunities.
Energy storage technology has become an indispensable part of the power system, and Taiwan region Power Company has continued to cooperate with the promotion of energy storage settings at the power generation end and at the client end. According to Taipower, under the demand for renewable energy frequency modulation in 2025, the target amount of long-term energy storage (E-dReg) energy storage is 500,000 kilometers, and private applications are provided to participate; As of March 2023, the number of E-dReg energy storage applications is 4.271 million kilometers, which has exceeded the 2025 target volume by 8 times. However, in 2024, there is an opportunity to reopen the application sites for private enterprises to apply for E-dReg, and the key areas are Changhua, Yunlin, Chiayi, and Tainan.
Looking ahead, Taipower will divide four regional power grids based on the actual geographical location of Taiwan region, and plan more microgrids under each regional grid, with the goal of developing intelligent regional power grids. Li Dasheng pointed out that in view of the trend of diversification and regionalization of international energy supply in the future, coupled with the large use of renewable energy in the energy transition, the traditional central power grid will gradually transform into regional microgrids and smart microgrids, and it is recommended that energy storage-related manufacturers realize the digital transformation of energy through technology integration, and develop energy storage systems with "grid-forming technology" capabilities, so that the frequency and power output of the inverter can actively meet the demand of the current load and ensure the stable operation of the power system. It will bring significant business opportunities.
Source: https://mp.weixin.qq.com/s/IC61Ez-yvrCa5kQjFuOciA