Future trends in the electric power industry

New energy storage has become the main body of the market

Under the background of “double carbon”, with the large-scale access of new energy to the grid, the power system is also facing multiple challenges such as power balance, system security and stability, and efficient utilization of new energy. Energy storage with its flexible regulation ability, support photoelectric wind power large-scale grid, is considered a necessary part of the new power system.

With energy storage to encourage the introduction of policies, new energy storage independent market subject status gradually clear. The so-called new energy storage, refers to the use of physical energy storage, electrochemical energy storage, electromagnetic energy storage, phase change energy storage and other emerging energy storage technologies, with independent measurement, control and other technical conditions, access to the scheduling automation system can be monitored and dispatched by the grid, in line with the relevant standards and guidelines for this specification requirements, with legal personality of the independent energy storage subject. Generation-side, user-side, grid-side new energy storage can participate in market transactions. New energy storage has a fast response, flexible configuration, short construction cycle and other advantages, can play a variety of roles in power operation peak, peaking, frequency regulation, hill climbing, black start, is an important part of building a new power system. In this regard, the two departments in the “on further promoting new energy storage to participate in the power market and dispatching the use of notice” requirements, new energy storage can be used as independent energy storage to participate in the power market, encourage the allocation of new energy storage and belong to the power supply to jointly participate in the power market, accelerate the promotion of independent energy storage to participate in the power market with the grid peaking ……, for energy storage to participate in Power market provides a variety of possibilities.

In June 2022, the National Development and Reform Commission and other nine departments issued a notice on the issuance of the “14th Five-Year Plan” for renewable energy development. It clarified the status of new energy storage as an independent market entity and improved the trading mechanism and technical standards for energy storage participation in various electricity markets.

In December 2022, the State Grid operating area “new energy storage subject registration specification guidelines” was released, the specification guidelines apply to the market registration, information change, cancellation and other business management work of the new energy storage subject in the State Grid Co. This is the first time from the implementation level of the power trading institutions unified, clear new energy storage as independent of power generation enterprises, power sales companies and users of the registration type. This means that new energy storage participation in the power market has become the norm.

With the policy level opening up the business model of energy storage, energy storage operators can participate in power spot market trading and expand their profit space through peak-to-valley price difference and other means.

1. Clean energy and carbon neutrality: With the increasing global concern about climate change, clean energy and carbon neutrality have become the main direction of the power industry. The cost of renewable energy is decreasing, and more and more countries and regions have launched carbon emission reduction policies and targets, so the power industry will accelerate the transition to clean energy and carbon neutral direction.

• Digitalization and intelligence: Digitalization and intelligence technologies will be widely used in the power industry, including smart grid, smart metering, smart energy storage and so on. This will bring higher efficiency, better user experience and more reliable power supply services.
•  Distributed energy and energy Internet: Distributed energy and energy Internet will become the emerging direction of the future electric power industry. Through the use of distributed energy and energy Internet, the power industry can better meet customer demand and improve the reliability and flexibility of power supply.

4. Electrification and energy storage: With the popularity of electric vehicles and the increase of electricity demand, electrification and energy storage will become an important direction for the electric power industry. Through electrification and energy storage technologies, the power industry can better respond to changes and fluctuations in energy demand.

5. International cooperation and market integration: International cooperation and market integration will become a trend in the power industry. The power industry will strengthen international cooperation to jointly address global energy and environmental challenges, while accelerating market integration, breaking down national boundary restrictions and promoting the opening and competition of the power market.

6.In general, the future power industry will develop in the direction of clean, intelligent, distributed, electric and internationalization. These trends will bring new opportunities and challenges that require joint efforts by the power industry and relevant stakeholders to address.