Energy storage is an important support for building a new type of power system, which has changed the traditional mode of instant use, simultaneous production and consumption in the power system. With the continuous increase of new energy installations in China, the "new energy+energy storage" model has become an effective way to solve the problem of new energy consumption.

On April 12th, Li Qiang, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and Premier of the State Council, pointed out during his research in Beijing that energy storage plays an important role in the energy revolution and has broad market space. We need to closely integrate the development of new energy and energy storage industries, further strengthen planning guidance and policy support, continue to promote technological progress, actively support the diversified development of user side energy storage, and better adapt to market changes and meet user needs.

According to data from the National Energy Administration, as of the end of 2022, the installed capacity of new energy storage projects in China has reached 8.7 million kilowatts, with an average energy storage duration of about 2.1 hours, an increase of over 110% compared to the end of 2021. On May 8th, during the "510" China Brand Day Energy Industry Brand Promotion Week (hereinafter referred to as "Energy Brand Week"), Battery Network learned that in recent years, many regions in China have clarified the requirements for the use of new energy in combination with energy storage, which has led to the rapid growth of electric energy storage. However, there is currently no relatively mature business model for electric energy storage in China, and the energy storage industry chain faces many uncertainties.

Independent energy storage and sharing mechanisms are favored

The new type of energy storage has advantages such as fast response, flexible configuration, and short construction period. It can play various roles in power operation, such as peak shaving, frequency regulation, slope climbing, and black start. It is an important component of building a new type of power system.

Wang Jin, President of Guohe Intercontinental Energy Consulting Institute and Chief Information Officer of China Energy Industry Development Network, stated that compared to developed electricity market-oriented countries, there is no so-called strong energy storage allocation on the grid side, generation side, or user side. However, energy storage, especially electricity storage, has a relatively complete market mechanism and profit model.

Although energy storage can help solve the problem of new energy consumption, the disadvantage of high energy storage costs has not been completely solved. For situations where there are policy requirements for regional new energy development that require allocation and storage, Liu Jian, an associate researcher at the Renewable Energy Center of the Energy Research Institute of the National Development and Reform Commission, said that from a business model perspective, in order to make profits, it is necessary to improve the utilization rate of energy storage. The best method is to independently allocate and store energy on the power side and share it, This can increase operational value, reduce unnecessary expenses, and also reduce some situations where companies simply allocate storage to cope. In addition, it can improve safety and reduce the occurrence of accidents.

So, should the allocation and storage of new energy be cancelled? Liu Jian stated that the new energy distribution and storage policy has certain guiding significance for the region, so it cannot be cut across all. He also stated that improving policies and flexible application of market mechanisms can also have better economic effects on enterprises.

Trillion tuyere on Flywheel energy storage station

The Implementation Plan for the Development of New Energy Storage during the 14th Five Year Plan period further deploys the scale, industrialization, and marketization of China's new energy storage during the period. New type of energy storage refers to energy storage mainly in the form of electricity output, in addition to pumped storage. In addition to electrochemical energy storage, Flywheel energy storage, as a physical energy storage, has gradually entered the industry vision in recent years and entered the engineering demonstration stage.

Zhang Xin, assistant to the chairman of Huachi Kinetic Energy (Beijing) Technology Co., Ltd., said that the business model of Flywheel energy storage is mainly reflected in four aspects: first, green and low-carbon can produce environmental benefits; Secondly, long lifespan, cold and high temperature resistance can generate maintenance and replacement benefits; Thirdly, high safety reduces unnecessary expenses; Fourthly, good future development prospects can generate investment returns.

Zhang Xin said that the business model determines the development of economy. From the perspective of the existing business model of Flywheel energy storage, its value creation path includes participating in application scenarios such as power frequency modulation, UPS, energy recovery, special power supply, and electric vehicles, among which the power grid frequency modulation market has the most potential and imagination space. Based on the observation of the industry and the survey of flywheel enterprises, the physical Energy storage Flywheel energy storage will usher in a market space of more than 10 billion yuan per year at the current trillion scale energy storage outlets.

Among various Energy storage, Flywheel energy storage has unique advantages over other Energy storage. It has unique advantages such as high power density, high charging and discharging times, long service life, and environmental friendliness. However, the previous high cost has relatively limited its large-scale application in the energy storage field (currently the cost is 3-4 times that of chemical batteries). In the future, under the influence of national policies, with the reform of the energy industry, the expansion of capacity scale, and the innovation of materials and technology, the cost of Flywheel energy storage will decline rapidly with large-scale production, which is expected to catch up with electrochemical batteries and break the market barriers.

Building Energy Storage Brands Based on Technology Accumulation

2022 is considered the first year of the energy storage explosion, and rapid development has also brought "growth troubles". Problems such as battery fires have caused certain damage to the brand of the energy storage industry. Improving safety and reducing costs, building a better brand, winning the market, reducing costs and increasing efficiency are common issues faced by energy storage industry enterprises.

Brand is an important symbol of quality, service, and reputation, and is the core resource for enterprises to participate in market competition. For energy storage industries with high safety requirements, simply "competing for price" cannot monopolize the world. "Competing for quality" is the inevitable choice for enterprise development.

Just like countries such as Germany and the UK have different methods for energy storage, China's energy storage cannot be generalized in terms of brand building. Liu Jian stated that there is no fixed method or unified model for brand building in the energy storage industry and enterprises. Different regions need to develop their own energy storage or energy storage models based on their own and local conditions, in order to be most effective.

Therefore, with government support and market mechanisms, China's energy storage industry will definitely establish its own brand and create its own business model.

In terms of brand building, Zhang Xin pointed out that for Flywheel energy storage, the first thing to do is to do a good job in its own products. If the quality is improved, the reputation and reputation will be improved, and the brand will be established. In addition, it is necessary to use media platforms for reporting and promotion, so that more enterprises know about good products and high-quality energy storage brands can quickly spread.

Wang Jin concluded that a brand is the soul of an enterprise, an industry, and a country. Telling the story of energy storage in China is a systematic project, which is backed by years of accumulation of technology, improvement of management, improvement of industrial chain, improvement of sales, and brand building. The development of an industry must be supported by more good brand enterprises. Telling a good Chinese story is not solely based on telling, but rather on actual actions. We should attach importance to and support the construction of energy industry and energy storage industry brands, and create excellent brands in order for China's energy storage industry to set a benchmark for the world.