Restart intergovernmental energy cooperation! China and the United States issue important statements!

Restart intergovernmental energy cooperation! China and the United States issue important statements!

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According to the China News Agency, on November 15th, China and the United States issued a statement on strengthening cooperation to address the climate crisis in Sunshine Hometown. The statement states that the two countries support the efforts outlined in the G20 Leaders' Declaration to triple global renewable energy installations by 2030, and plan to fully accelerate the deployment of renewable energy in both countries at 2020 levels from now to 2030, in order to accelerate the substitution of coal, oil, and gas power generation, thereby anticipating a meaningful absolute reduction in emissions from the power industry after reaching its peak.

According to the statement, both China and the United States have decided to restart the China US Energy Efficiency Forum, resume bilateral energy policy and strategic dialogue, and strive to promote at least five large-scale carbon capture, utilization, and storage (CCUS) cooperation projects in industries and energy by 2030.

In addition, China and the United States will also support climate cooperation between provinces, states, and cities in areas such as electricity, transportation, construction, and waste. Both sides will promote the active participation of local governments, enterprises, think tanks, and other relevant parties in cooperation. The two countries will conduct policy dialogue, share best practices, exchange information, and promote project cooperation through agreed regular meetings.

China and the United States also plan to hold high-level local climate action events in the first half of 2024. Both sides welcome and appreciate the local cooperation that has already been carried out between the two countries, and encourage practical climate cooperation between provinces, states, and cities.

On November 10th, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Establishing a Coal Electricity Capacity Tariff Mechanism" (hereinafter referred to as the "Notice"), which adjusted the current single system electricity price for coal electricity to a two-part system electricity price. The electricity price is formed through marketization and sensitively reflects changes in electricity market supply and demand, fuel costs, and other factors; The capacity electricity price level is reasonably determined and gradually adjusted based on the actual situation of transformation progress, fully reflecting the support and regulation value of coal power to the power system, and ensuring the continuous and healthy operation of the coal power industry.

On November 13th, the Shandong Provincial Energy Bureau released the "Several Policy Measures to Support the Healthy and Orderly Development of New Energy Storage", which mentioned that new energy storage, as an independent market entity, participates in market transactions and implements a two-part online electricity pricing mechanism based on a market-oriented model of "electricity price+capacity price". The compensation fee for the demonstration project determined by the Provincial Energy Bureau is temporarily twice the monthly available capacity compensation standard for independent energy storage in the electricity market rules.

On November 16th, the National Energy Administration issued a notice on strengthening the risk monitoring of safe operation of electrochemical energy storage power stations on the power generation side of the power grid. Document requirement: For equipment and systems with safety hazards, timely warning and effective measures should be taken to eliminate the hazards. Each power enterprise should complete its monitoring capacity construction before December 31, 2024, and all new and existing electrochemical energy storage power stations should be included in the monitoring scope after 2025.

Analysis of the energy storage market this week

This week, the domestic energy storage market showed a characteristic of off-season, with a decrease in battery shipments, weakened prices, and downstream owners delaying work, making it difficult for some companies to meet their annual targets.

In terms of price, the trend of energy storage cells continues to be weak, and there is room for further decline.

In terms of policy, national ministries and commissions have released a capacity mechanism for coal electricity prices, which is beneficial for the capacity pricing mechanism of the energy storage market and also reflects the transformation of coal electricity from a primary energy source to a flexible resource regulation.

In terms of technology, recently, China State Energy (Beijing) Technology Co., Ltd. successfully transferred power to the international first 300MW/18GWh salt cavern advanced compressed air energy storage demonstration power station built in Feicheng, Shandong. This not only demonstrates the development potential of energy storage technologies other than lithium, but also may have an impact on the electrochemical energy storage market in the future.

This week, the household storage market has been relatively flat, and there are still no obvious signs of market recovery. The industry generally expects the demand for household storage to improve next year.

In addition, various enterprises in the energy storage industry are also developing technological directions for battery cells recently, such as 280Ah and 314Ah battery cells, which are gradually starting to be used in household storage application systems. It is reported that the overall cost of using 280Ah high-voltage battery cells to manufacture household storage systems is relatively high, mainly applied to the European market led by Germany, while low-voltage battery cell household storage systems will lean towards the Asian, African, and Latin American markets.

At present, the technological route of future battery cells is a state of blooming flowers and will not tend to be single.

In terms of overseas household storage, due to the large-scale inventory of dealers in the first half of 2022 and the first quarter of this year, and the short-term decline in demand growth in the market, inventory remained high. In the third quarter of this year, the inventory of household storage inverters has been consistently high. Although due to the impact of geopolitical conflicts, European electricity prices have continued to rise, or the process of European household storage and destocking may be accelerated. However, due to previous high inventory levels, it is now predicted that, Even in the first half of next year, the household savings situation will not improve.

As of mid month, the number and scale of bids for energy storage bidding have decreased compared to September and October, and the bidding prices have also shown a downward trend compared to the average of last month.

In terms of portable energy storage, Shenchi Electromechanical released a statement this week that the new factory building used to expand production capacity is expected to form an annual production scale of 120000 sets of mobile power supplies and 10000 sets of household energy storage products after it is put into use in the second half of next year.

China Resources Power Neihuang County Wind Storage Integrated Rural Revitalization Demonstration Project is put into grid operation:

Project location: Henan

Energy storage scale: 100MW/200MWh

Project status: grid connected and put into operation

Project Introduction: This project is a wind storage integrated rural revitalization demonstration project developed and operated by China Resources Power Neihuang County, located in Neihuang County, Anyang City, Henan Province. This project is currently the largest wind storage integrated power generation project in Henan with the highest proportion of new energy generation and energy storage. It is also a part of the key special project of the national key research and development plan "Energy Storage and Smart Grid Technology". The project was successfully connected to the grid in November 2023, marking the full completion of the first phase of the project. This project adopts a domestically innovative "lithium battery+supercapacitor" combination of new energy storage technology, with a total of 40 sets of 2.75/5.5 megawatt hour energy storage units configured. Through the implementation of "fire storage combined frequency regulation", the "electricity storage" collaborative optimization is achieved. After the completion of this project, it can add about 700 million kilowatt hours of "green electricity" to Anyang City every year, save about 273800 tons of standard coal consumption and reduce carbon dioxide emissions by about 532000 tons.

Linyang Energy Storage Anhui Wuhe Solar Energy Storage Integrated Base Phase I Energy Storage Project is put into grid operation:

Project location: Anhui

Energy storage scale: 100MW/200MWh

Project status: grid connected and put into operation

Project introduction: This project is the first energy storage system integration project in Wuhe, Bengbu, Anhui Province by Linyang Energy Storage, located in Wuhe County, Bengbu City, Anhui Province. This project is the first phase of a wind and solar integrated storage base with an installed capacity of 1.2 million kilowatts and a supporting energy storage capacity of 324MW/648MWh, planned to be constructed from 2022 to 2024. The project was successfully connected to the grid on November 10, 2023, marking the full completion of the first phase of the project. This project adopts a domestically innovative "lithium battery+supercapacitor" combination of new energy storage technology, with a total of 40 sets of 2.75/5.5 megawatt hour energy storage units configured. Through the implementation of "fire storage combined frequency regulation", the "electricity storage" collaborative optimization is achieved. This project can effectively enhance the differences in the output characteristics of wind and photovoltaic power generation, achieve multi energy complementarity, promote local balance and consumption of new energy generation, and ensure the safe and stable operation of the power grid, supporting the "dual carbon" goal. After the completion of this project, it can add about 700 million kilowatt hours of "green electricity" to Wuhe County every year, save about 273800 tons of standard coal consumption and reduce carbon dioxide emissions by about 532000 tons per year