Application Scenarios and Typical Business Model Design of Grid Energy Storage in China

Abstract

The application of energy storage technology in power systems can transform traditional energy supply and use models, thus bearing significance for advancing energy transformation, the energy consumption revolution, thus ensuring energy security and meeting emissions reduction goals in China. Recently, some provinces have deployed energy storage on grid side demonstration projects, the scale of power grid side energy storage is rapid increasing. However, a mature business model is still lacked at present. The present paper focuses on grid energy storage applications. Firstly, we define the concept of grid energy storage, before describing its overall development and grid energy storage demonstration projects in China. Secondly, from the perspective of the value of grid energy storage applications, we analyze typical applications for grid energy storage before discussing grid energy storage policies in major countries and the lessons thereof. Finally, in conjunction with Chinese policy requirements and the reform of the electricity system, we consider factors such as potential investors, mechanisms to create returns on investments and regulatory mechanisms to propose typical business models as well as policy measures that promote the development of grid energy storage in China.