Three major trends in the development of new energy storage in Guangxi

Recently, Guangxi's peak-shaving and frequency regulation auxiliary service market completed its first independent energy storage power plant peak-shaving transaction, realizing market-oriented operation of energy storage auxiliary services, opening up a new business model for energy storage profitability, further demonstrating the strategic value of energy storage as a grid-regulating resource, and benefiting the sustainable development of energy storage in Guangxi, providing strong support for the construction of a new power system. Data on electricity consumption from the Southern Power Grid Guangxi Power Grid Company shows that, as of August this year, Guangxi's installed capacity of new energy reached 20.28 million kilowatts, accounting for nearly 30% of the region's total installed capacity, exceeding hydropower installed capacity and becoming the second largest power generation type in Guangxi. As an important technological means to enhance the power system's regulation capacity and expand the absorption capacity of new energy, new energy storage is rapidly developing from its initial stage, and the development of the new energy storage industry in Guangxi shows three major trends.

—Energy storage installation will usher in large-scale development

Energy storage power plants are important basic equipment for building a new energy system and a new power system. They play an important role in improving the utilization rate of new energy sources such as wind power and photovoltaics, promoting the absorption rate of new energy, and ensuring a safe power supply.

After the Pinglu Energy Storage Station was connected to the grid in Wuming District, Nanning City, Guangxi on December 16, 2022, it achieved a breakthrough for the independent energy storage industry in Guangxi. According to data from the Energy Bureau of the Guangxi Zhuang Autonomous Region Development and Reform Commission, as of August this year, the total installed capacity of energy storage in Guangxi reached 358,000 kilowatts, 7.2 times the installed capacity of energy storage last year, and an increase of over 400% compared to the end of 2021, showing a rapid development trend in the energy storage industry.

The Guangxi Zhuang Autonomous Region Development and Reform Commission issued the "Guangxi New Energy Storage Development Plan (2023-2030)", which clarifies that by 2025, Guangxi plans to transition new energy storage from demonstration application to the initial stage of commercial application and towards large-scale development. The region's installed capacity of new energy storage is expected to reach 3 million kilowatts, with the grid-connected installed capacity of centralized new energy storage not less than 2 million kilowatts.

—Flexible "charging and discharging" with diverse energy storage application scenarios

In recent years, the construction of a new power system in Guangxi has accelerated, and the development of new energy has also been continuously strengthened. New energy generation is volatile, random, and intermittent, putting considerable pressure on the grid's regulation. Energy storage can effectively shave peaks and fill valleys, respond quickly, and achieve grid friendliness, making it an important means of building a new power system.

Due to its functions of peak shaving and valley filling, frequency regulation and phase regulation, and flexible "charging and discharging", energy storage projects, as "stabilizers" and "regulators" for the safe operation of the power grid, are used in various application scenarios. In Guangxi, in addition to independent energy storage stations, many new energy power stations are also equipped with energy storage equipment.

In July 2023, a newly built 30-megawatt energy storage system was put into operation at the 110-kilovolt Puzhu Wind Power Station in Qinzhou City, Guangxi. Li Jintao, deputy manager of Lingshan Jingxin Wind Power Generation Co., Ltd., introduced that with the energy storage system, adjustable and dispatchable new energy output is achieved. Especially when the grid load is low, the energy storage system can store wind power that cannot be absorbed temporarily, providing technical support for the full absorption of new energy.

The Zhangmu photovoltaic power station in Guigang, Guangxi, is the first new energy power station in the Guigang power grid equipped with an energy storage system. The project has a total capacity of 144 megawatts/288 megawatt-hours, with the first phase put into operation and connected to the grid in May this year, with a capacity of 50 megawatts/100 megawatt-hours. The energy storage system uses lithium iron phosphate electrochemical energy storage and is mainly used as an energy storage system supporting new energy generation projects.

Zhang Jianyu, project manager of the Zhangmu photovoltaic power station, introduced that the Zhangmu photovoltaic power station currently has an average daily power generation of 450,000 kilowatt-hours, and the energy storage can achieve two charges and two discharges per day according to dispatch arrangements, providing up to 200,000 kilowatt-hours of off-peak electricity per day.

To ensure the grid connection of this energy storage project, the Southern Power Grid Guangxi Guigang Power Supply Bureau actively coordinated with the project construction to ensure early grid connection and early commissioning. Yue Yihuan, deputy manager of the Planning and Development Department of the Southern Power Grid Guangxi Guigang Power Supply Bureau, said that the energy storage system, with its flexible power adjustment and fast adjustment speed, can effectively smooth out the fluctuations in the power output of new energy sources such as wind power and photovoltaics, making the power output of new energy power stations controllable, alleviating the pressure on grid peak shaving, and helping to absorb new energy.

Data shows that from January to August 2023, Guangxi's newly installed capacity of new energy increased by 3.138 million kilowatts, a year-on-year increase of 35.1%.

—Innovative business models promote sustainable development

As a new technology and new business model, the rapid development of new energy storage also faces challenges such as poor guidance on the cost of configuring energy storage and difficulties in profitability. Currently, new energy storage in Guangxi is in its initial stage of development, and useful explorations have been carried out in pilot applications and policy system construction.

Taking the Pinglu Energy Storage Station, invested and constructed by the Southern Power Grid Guangxi Power Grid Energy Technology Company, as an example, the Pinglu Energy Storage Station is the first large-capacity independent shared energy storage power station in the southern region, exploring a demonstration business model of "capacity leasing + market revenue" for shared energy storage.

For the construction of the Beibu Gulf offshore wind power base, the Fangchenggang Power Supply Bureau has vigorously constructed a 220-kilovolt transmission project supporting the offshore wind power demonstration project, and will start construction of the 500-kilovolt western coastal channel strengthening project this year, which is of great significance for the stability of the main power grid and the more scientific, healthy, and efficient use of energy storage stations.

The Guangxi Zhuang Autonomous Region Development and Reform Commission has successively issued the "Several Measures to Accelerate the Construction of New Energy Storage Demonstration Projects in Guangxi (Trial)" and the "Guangxi New Energy Storage Development Plan (2023-2030)", clarifying the price policy for independent shared energy storage and encouraging the use of the "capacity rental fee + power auxiliary service revenue" model to guide the cost of new energy storage, actively supporting various business entities to innovate shared energy storage business models.

With the continuous improvement of supporting policies for new energy storage, the Pinglu Energy Storage Station's co-construction and sharing business model has been further implemented. In August this year, the Pinglu Energy Storage Station completed its first regional frequency regulation market simulation transaction, further enhancing its profitability and promoting the market-oriented operation and development of shared energy storage.

(Source: Xinhua Finance)