Economic Viability Enhancement Drives Accelerated Growth in Energy Storage

Economic Viability Enhancement Drives Accelerated Growth in Energy Storage

Date:2024-05-10



As a robust pillar in constructing the new power system, energy storage sees increasing demand from industrial and commercial users as storage technology matures and costs gradually decrease. This trend benefits all parties involved: businesses can respond to power balance by utilizing peak shaving and valley filling methods, thereby saving electricity costs; investors can swiftly achieve returns on investment by leveraging peak-valley price differentials; and it effectively increases the absorption rate of photovoltaic power generation, contributing to dual carbon goals. Industrial and commercial energy storage systems undergo revitalized upgrades, coupled with large-scale containerized energy storage systems, achieving comprehensive coverage across power sources, grids, and end-users.

 

The global energy supply-demand landscape enters an adjustment phase, with energy storage being a must-have for accelerating the transition to clean energy in various countries. According to data from the China Energy Storage Alliance (CNESA), the global newly added and operational installed capacity of electric power storage projects reached 30.7GW in 2022, a 98% year-on-year increase, with the newly added installed capacity of new types of storage reaching 20.4GW. China, Europe, and the United States continue to lead the global energy storage market, accounting for a combined 86% of the global market share.

 

Industrial and commercial storage utilizes electrochemical energy storage technologies such as lithium batteries and is primarily used for peak shaving and valley filling. Energy storage can be classified into power source-side, grid-side, and end-user-side based on equipment or project access positions. Industrial and commercial energy storage is a typical application of distributed energy storage systems on the end-user side, characterized by proximity to distributed photovoltaic power sources and load centers, effectively increasing the absorption rate of clean energy and reducing transmission losses, suitable for large electricity consumers such as commercial buildings and industrial parks. The main purpose of industrial and commercial energy storage systems is to "shave peaks and fill valleys," optimize power resource allocation and rational use, and achieve arbitrage by utilizing peak-valley price differentials.

 

The architecture of industrial and commercial storage systems: Batteries and inverters are the core components of energy storage systems. Similar to large-scale energy storage, industrial and commercial energy storage systems include battery systems (BS), battery management systems (BMS), inverters (PCS), energy management systems (EMS), and other electrical circuits, protection, monitoring systems, etc., achieving flexible configuration of system voltage and capacity through modular design.


In terms of product forms, industrial and commercial energy storage products are typically divided into standard cabinet-type and containerized forms. Standard cabinet-type energy storage systems adopt modular construction, making them easy to expand. For installations with larger capacity, containerized energy storage systems may be selected. Containerized energy storage systems are equipped with various operating modes such as peak shaving, demand response, backup power, and command response. Combined with two-layer thermal propagation control screen design, three-layer fire protection design, and two-layer graded explosion relief, they provide users with safe, efficient, high-quality energy, and long-life energy storage solutions.

 

As an important component of smart grids, microgrids can provide power supply for areas with weak or no electricity and support power demand in temporary scenarios, maximizing energy, economic, and environmental benefits. Photovoltaic energy is prioritized for storage in batteries, with surplus electricity supplied to loads. When photovoltaic energy is insufficient, energy storage supplies power to loads. The photovoltaic plus energy storage mode can address the demand for small-scale power supply in remote areas, improving the local electricity consumption level.


With the construction of smart grids, the necessity of energy storage applications in power systems is increasing. Energy storage can effectively participate in grid regulation and operation, meeting application requirements such as peak shaving, frequency regulation, voltage regulation, emergency response, black start, and renewable energy integration, enhancing the utilization of renewable energy and ensuring the normal operation of power systems. Renewable energy power stations can effectively address the instability and intermittency of renewable energy generation, increasing the penetration rate of renewable energy in the grid.


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