Industrial and commercial energy storage: multiple catalytic demands are expected to meet new highs

Source From: ESSENCE Securitie

s

Analysis: Zhou Zhe

Summary

At the end of 2022, the installed capacity of wind and photovoltaic power generation in China reached 760 million kilowatts, accounting for 30% of the total installed capacity; Wind power and photovoltaic power generation amount to 1.2 trillion kilowatt hours, accounting for 14% of the total power generation

The benefits of industrial and commercial energy storage come from: 1) helping users save electricity bills (electricity bills+capacity bills); 2) Demand side response rewards; 3) Participate in power Spot market transactions.

✓ Multiple catalysis continues to emerge, and load side flexibility is a long-term trend

1. The marketization of industrial and commercial electricity prices and the transmission of power grid supply guarantee pressure have led to an increase in peak valley price differences.

2. 
   

2. With the construction of the electricity market, China continues to promote demand side response.

3. Demand response brings development opportunities for Virtual power plant, and industrial and commercial energy storage is a necessary link.

1、 Industrial and commercial energy storage is a storage method positioned for user side regulation

Under the dual carbon goal, the energy structure continues to promote green and low-carbon transformation, and the power system requires a large amount of regulatory resources. As of the end of 2022, the installed capacity of wind and photovoltaic power generation in China is 760 million kilowatts, accounting for 30% of the total installed capacity; Wind power and photovoltaic power generation amount to 1.2 trillion kilowatt hours, accounting for 14% of the total power generation. As the proportion of new energy continues to increase, the characteristics of intermittency, randomness, and volatility make the power system face regulatory pressure, requiring a large amount of flexible regulatory resources.

In the power system, energy storage has important regulatory value in different scenarios of source, grid, and load side. Energy storage can be applied on the power generation side, grid side, and consumption side, with different values and meanings in different scenarios.

The value of energy storage in different scenarios

1) Industrial and commercial energy storage is the application of energy storage on the load side, which achieves load side power regulation through battery charging and discharging strategies. Promoting the development of distributed energy and energy storage on the user side can improve the utilization rate of renewable energy, reduce the balance pressure of the power grid, and improve the safe and stable operation of the system.

New energy storage application scenarios on each side of the source network load

2) Compared to energy storage power plants, the industrial and commercial energy storage structure and installation layout are relatively simple. The energy storage power station system has a large capacity and complex structure. Usually, the DC side and AC side are constructed separately. The DC side includes batteries, temperature control, fire protection, etc. The container integrates battery cabinets, combiner cabinets, monitoring equipment, etc. The single container capacity is about 3MWh. The AC side includes PCS, grid connected cabinets, transformers, etc. The station power system is also required to provide self use power for the energy storage unit, and a booster station is provided to assist in grid connection. The industrial and commercial energy storage systems are mostly built in an integrated manner, using integrated cabinets and modular construction, which are easy to expand. They integrate batteries, PCS, BMS, temperature control, and fire protection systems in a single container, with a single cabinet capacity of 100-300kWh. Some industrial and commercial energy storage projects with large installed capacity will also choose containerized energy storage systems similar to energy storage power stations.

Comparison between energy storage power stations and industrial and commercial energy storage

）Industrial and commercial energy storage systems typically combine all key equipment in the form of integrated cabinets

The industrial and commercial energy storage system consists of battery system+BMS, PCS, EMS, transformer, air conditioning, fire protection system, monitoring and alarm system, etc.

(1) Battery: usually choose energy type batteries with high cost-effectiveness;

(2) BMS: Provides overcharge, over discharge, over current, over temperature, under temperature, short circuit, and current limiting protection functions for battery packs;

(3) PCS: Compared to energy storage power stations, it has simpler functions and smaller size;

(4) EMS: Most of them do not need to accept power grid scheduling, and their functions are relatively basic, only requiring local energy management.

Container type industrial and commercial energy storage system

Integrated cabinet type industrial and commercial energy storage system

2、 Industry chain: equipment integration manufacturers and development operators

Upstream of the industrial and commercial energy storage industry chain are various kinds of equipment. The electrochemical energy storage system consists of batteries, inverters (PCS), Battery management system (BMS), energy management system (EMS), temperature control system and other electrical equipment. The midstream is a system integrator and development operator, while the downstream is a business operator.

Industrial and commercial energy storage industry chain

Examples of Industrial and Commercial Energy Storage Products