Leading the Charge: How Energy Storage is Reshaping the Landscape for B2B Clients

Overview of the development and application of the energy storage industry.

1. Introduction to energy storage technology.

Energy storage is the storage of energy. It refers to technologies that convert one form of energy into a more stable form and store it. They then release it in a specific form when needed. Different energy storage principles split it into 3 types: mechanical, electromagnetic, and electrochemical. Each energy storage type has its own power range, traits, and uses.

It has advantages. These include less impact from geography. They also have a short construction time and high energy density. As a result, electrochemical energy storage can be used flexibly. It works in many power storage situations. It is the technology for storing power. It has the widest range of uses and the most potential for development. The main ones are lithium-ion batteries. They are used in scenarios from minutes to hours.

2. Energy storage application scenarios

Energy storage has a wealth of application scenarios in the power system. Energy storage has 3 main uses: power generation, the grid, and users. They are:

New energy power generation is different from traditional types. It is affected by natural conditions. These include light and temperature. Power output varies by season and day. Adjusting power to demand is impossible. It is an unstable power source. When the installed capacity or power generation proportion reaches a certain level. It will affect the power grid’s stability. To keep the power system safe and stable, the new energy system will use energy storage products. They will reconnect to the grid to smooth the power output. This will reduce the impact of new energy power. This includes photovoltaic and wind power. They are intermittent and volatile. It will also address power consumption problems, like wind and light abandonment.

Traditional grid design and construction follow the maximum load method. They do so on the grid side. That is the case when building a new grid or adding capacity. The equipment must consider the maximum load. This will lead to high costs and low asset use. The rise of grid-side energy storage can break the original maximum load method. When making a new grid or expanding an old one, it can reduce grid congestion. It also promotes expanding and upgrading equipment. This saves on grid investment costs and improves asset use. Energy storage uses containers as the main carrier. It is used on the power generation and grid sides. It’s mainly for applications with a power of more than 30kW. They need a higher product capacity.

New energy systems on the user side are mainly used to generate and store power. This cuts electricity costs and uses energy storage to stabilize power. At the same time, users can also use energy storage systems to store electricity when prices are low. This lets them cut their use of grid electricity when prices are high. They can also sell electricity from the storage system to make money from peak and valley prices. User-side energy storage uses cabinets as the main carrier. It suits applications in industrial and commercial parks and distributed photovoltaic power stations. These are in the 1kW to 10kW power range. The product capacity is relatively low.

3. The “source-grid-load-storage” system is an extended application scenario of energy storage

The “source-grid-load-storage” system is an operation mode. It includes a solution of “power source, power grid, load, and energy storage”. It can boost energy use efficiency and grid safety. It can fix problems like grid volatility in clean energy use. In this system, the source is the energy supplier. It includes renewable energy, such as solar, wind, and hydropower. It also includes traditional energy, such as coal, oil, and natural gas. The grid is the energy transmission network. It includes transmission lines and power system equipment. The load is the end user of energy. It includes residents, enterprises, and public facilities. Storage is the energy storage technology. It includes storage equipment and technology.

In the old power system, thermal power plants are the power source. The homes and industries are the load. The two are far apart. The power grid connects them. It uses a large, integrated control mode. It is a real-time balancing mode where the power source follows the load.

Under the “neue Leistungssystem”, the system added the charging demand of new energy vehicles as a “load” for users. This has greatly increased pressure on the power grid. New energy methods, like photovoltaics, have let users become a “power source.” Also, new energy vehicles need fast charging. And, new energy power generation is unstable. So, users need “energy storage” to smooth the impact of their power generation and use on the grid. This will enable peak power use and trough power storage.

New energy use is diversifying. Users now want to build local microgrids. These connect “power sources” (light), “energy storage” (storage), and “loads” (charging). They use control and communication tech to manage many energy sources. They let users generate and use new energy locally. They also connect to the large power grid in two ways. This reduces their impact on the grid and helps balance it. The small microgrid and energy storage are a “photovoltaic storage and charging system”. It is integrated. This is an important application of “source grid load storage”.

二. Application prospects and market capacity of energy storage industry

CNESA’s report says that by the end of 2023, the total capacity of operating energy storage projects was 289.20GW. This is up 21.92% from 237.20GW at the end of 2022. The total installed capacity of new energy storage reached 91.33GW. This is a 99.62% increase from the previous year.

By the end of 2023, the total capacity of energy storage projects in China reached 86.50GW. It was up 44.65% from 59.80GW at the end of 2022. They now make up 29.91% of global capacity, up 4.70% from the end of 2022. Among them, pumped storage has the most capacity. It accounts for 59.40%. Market growth comes mainly from new energy storage. This includes lithium-ion batteries, lead-acid batteries, and compressed air. They have a total capacity of 34.51GW. This is a 163.93% increase from last year. In 2023, China’s new energy storage will increase by 21.44GW, a year-on-year increase of 191.77%. New energy storage includes lithium-ion batteries and compressed air. Both have hundreds of grid-connected, megawatt-level projects.

Judging from the planning and construction of new energy storage projects, China’s new energy storage has become large-scale. In 2022, there are 1,799 projects. They are planned, under construction, or in operation. They have a total capacity of about 104.50GW. Most of the new energy storage projects put into operation are small and medium-sized. Their scale is less than 10MW. They make up about 61.98% of the total. The energy storage projects in planning and under construction are mostly big. They are 10MW and above. They make up 75.73% of the total. More than 402 100-megawatt projects are in the works. They have the basis and conditions to store energy for the power grid.