According to data from the National Energy Administration, new wind and solar power installed capacity reached a record high of 120 GW in 2020. By the end of 2020, my country's grid-connected wind power and photovoltaic power generation capacity reached 280 GW and 250 GW, respectively. Furthermore, against the backdrop of the country's "30·60" carbon emission reduction plan, there is still much room for growth in renewable energy capacity.

However, as the penetration of photovoltaic and wind power continues to increase throughout the power system, adapting renewable energy to the grid has become a top priority. The importance of energy storage is self-evident.

As a result, at the start of the 14th Five-Year Plan, several provinces, including Shanxi, Ningxia, Qinghai, Inner Mongolia, and Guizhou, have released plans to integrate renewable energy with energy storage. PV + energy storage will become the mainstream model for future photovoltaic power station development.

However, it is important to note that the economic viability of energy storage is still not fully realized, and the mandatory requirement for photovoltaic power stations to include energy storage will inevitably result in additional costs for developers. According to industry insiders, although the winning bid price for energy storage EPC projects has dropped 23% compared to the beginning of 2020, based on a 20% installed capacity PV project and a 2-hour energy storage duration, adding energy storage will increase the initial investment cost by 8%-10%.

1. Datong, Shanxi

On January 13, the People's Government of Datong City, Shanxi Province, issued the "Datong Municipal Implementation Opinions on Supporting and Promoting the High-Quality Development of the Energy Storage Industry." This document states that during the 14th Five-Year Plan period, all incremental new energy projects in Datong will be equipped with energy storage facilities, with a minimum allocation of 5%. For existing new energy projects, companies are encouraged to implement appropriate allocations in phases, with priority given to qualified users such as microgrids, incremental power distribution, and independent industrial parks. The document also specifies that the starting standard for energy storage products must be a single cell capacity of 280Ah or greater, with a cycle life of 8,000 cycles or more (at 25°C, 0.5C charge and discharge, and a capacity greater than 80%).

2. Ningxia

On January 11, the Ningxia Autonomous Region Development and Reform Commission issued the "Guiding Opinions on Accelerating the Healthy and Orderly Development of Energy Storage in the Autonomous Region (Draft for Comment)." This draft clearly states that energy storage facilities should be constructed first in the new energy-rich Ningdong, Wuzhong, and Zhongwei regions. "New Energy + Energy Storage" demonstration application projects will be developed and promoted throughout the region. During the 14th Five-Year Plan period, energy storage will account for no less than 10% of new energy projects, with continuous energy storage duration of at least two hours. In principle, energy storage facilities for new energy projects will be commissioned simultaneously with new energy projects, while existing projects will have their storage facilities commissioned by the end of 2021. Starting in 2021, new energy companies that meet these requirements will be given priority access to wind and solar resource development rights under the same conditions. Energy storage projects that meet these requirements will also be supported in participating in the power ancillary services market.

3. Qinghai

On January 18, Qinghai Province issued the "Notice on Issuing Several Measures (Trial) to Support the Development of the Energy Storage Industry." The draft clearly states that the coordinated development of energy storage and renewable energy will be actively promoted, implementing an integrated "new energy + energy storage" development model. Newly built new energy projects must be equipped with energy storage equipment for at least 10% of their capacity, with a storage duration of at least two hours. Priority support will be given to integrated projects with a high energy storage ratio and extended duration. A coordinated development model of "hydropower + new energy + energy storage" will be implemented, with new energy and energy storage systems simultaneously installed in newly built and commissioned hydropower stations. This will ensure that the ratio of newly added hydropower, new energy, and energy storage capacity reaches 1:2:0.2, achieving local balance.

In addition, the pilot draft specifies that for "new energy + energy storage" and "hydropower + new energy + energy storage" projects, an operating subsidy of 0.10 yuan per kilowatt-hour will be provided for electricity generated and stored within the provincial grid by self-generated facilities. Projects certified by the Provincial Department of Industry and Information Technology to use at least 60% of locally produced energy storage batteries will receive an additional subsidy of 0.05 yuan per kilowatt-hour. This subsidy will be available for electrochemical energy storage projects commissioned in 2021 and 2022, and the subsidy period is tentatively set from January 1, 2021, to December 31, 2022.

4. Inner Mongolia

On January 25, the Inner Mongolia Autonomous Region Energy Bureau issued the "Implementation Plan for Ensuring the Absorption of Renewable Energy Power in the Inner Mongolia Autonomous Region." The plan calls for the vigorous development of new energy and further increases renewable energy absorption capacity. By 2025, the region's renewable energy absorption responsibility will reach over 25% of the total power generated, promoting high-quality renewable energy development in the region. The plan outlines the measures for ensuring the absorption of renewable energy power in the region: The Inner Mongolia Autonomous Region Energy Bureau, in conjunction with the Inner Mongolia Autonomous Region Department of Industry and Information Technology, urges all market entities to enhance their renewable energy absorption capacity through measures such as supporting energy storage facilities, adjustable loads, self-owned generating units participating in peak-shaving operations, and flexible thermal power conversion. Load-shaving electricity, peak-shaving electricity generated by self-owned generating units, electricity generated by energy storage projects under the unified dispatch and operation management of the power grid, and electricity used by wind power heating projects are all considered absorbed renewable energy electricity.

5. Hunan

At the end of December 2020, Hunan's power rationing measures due to a significant increase in power load became a hot topic. Subsequently, State Grid Hunan Electric Power Co., Ltd. stated that during the 14th Five-Year Plan period, the province's power sector will implement comprehensive measures across multiple areas, including power sources, power grids, energy storage construction, and load shifting, to ensure solid energy support for the province's economic and social development.

With regard to new energy development, the province will accelerate the promotion of the "new energy + energy storage" model, allocating energy storage to 20% of new wind power installed capacity and 10% of new photovoltaic power installed capacity to alleviate the province's power supply and demand imbalance.

6. Shandong

On February 19, 2021, the Shandong Provincial Energy Bureau issued the "Guiding Opinions on Provincial Energy Work in 2021," which proposed establishing a mechanism for independent energy storage sharing and prioritizing energy storage in peak-shaving and dispatching. In principle, new energy sites will be equipped with at least 10% energy storage facilities. The province's new energy storage facilities will reach approximately 200,000 kilowatts.

On the power supply side, we will prioritize the construction of projects such as the Laizhou Tushan Haoyang "photovoltaic + energy storage" project, the Guoneng Penglai Power Plant thermal energy storage project, and the Huaneng Huangtai Power Plant electrochemical energy storage project. On the grid side, we will accelerate the construction of the second phase of pumped-storage power stations in Yimeng, Wendeng, Weifang, and Tai'an. On the user side, we will prioritize the demonstration and application of "energy storage +" in coal-fired power supply, power demand response, and other scenarios, with the completion of one or two demonstration projects.

7. Shaanxi

On March 10, the Shaanxi Provincial Energy Bureau issued the "Opinions on Promoting the High-Quality Development of Renewable Energy in Shaanxi Province" (Draft for Comment), providing guidance on promoting high-quality renewable energy development under the goals of achieving carbon peak and carbon neutrality. According to the document, starting in 2021, new centralized wind and photovoltaic power generation projects with a capacity of 100,000 kilowatts or more in Guanzhong and northern Shaanxi must deploy energy storage facilities for at least 10% of their installed capacity, with a minimum of 20% in Yulin. New energy storage facilities must be constructed with continuous energy storage for at least two hours, a service life of at least 10 years (5,000 cycles), and a system capacity degradation rate of no more than 20% over 10 years. These facilities must be commissioned simultaneously with the power generation projects. Local governments or large enterprises are encouraged to take the lead in deploying centralized energy storage stations near substations.

8. Aksu Prefecture, Xinjiang

The Awati County Development and Reform Commission of Xinjiang forwarded the "Notice on Organizing the Competitive Allocation of Photovoltaic Power Generation Projects in Aksu Prefecture in 2021."

The total capacity of new photovoltaic power generation projects in Aksu Prefecture in 2021 is 200,000 kilowatts, initially divided into four lots, each with a capacity of 50,000 kilowatts. Priority will be given to projects integrating multiple industries, including photovoltaics and agriculture (animal husbandry, etc.). Power generation capacity will be flexibly adjusted based on construction conditions, and can be integrated across counties (cities). PV power generation projects included in development and construction must include energy storage projects at a ratio of no less than 10% of installed capacity. Energy storage and PV power generation projects must be developed as a whole, with construction commencing and construction co-existing. According to the grid connection timeline, these projects must be completed and connected to the grid before December 31, 2021.

9. Guizhou

On March 5, the Guizhou Provincial Energy Bureau issued the "Interim Measures for the Management of Wind and Photovoltaic Power Generation Projects in Guizhou Province" (draft for public comment), providing guidance for achieving high-quality development of wind and photovoltaic power generation, expanding the scale of the industry, and promoting healthy and orderly development of the industry.

According to the document, to ensure safe and stable grid operation and peak load regulation, commissioned wind and photovoltaic power generation projects must incorporate energy storage within one year of commissioning. New wind and photovoltaic power generation projects must be equipped with energy storage in accordance with the principle of "simultaneous planning, design, construction, and commissioning." The scale of energy storage construction should not be lower than the recommended capacity based on grid calculations. Enterprises that find it difficult to build their own energy storage can purchase energy storage services of equivalent capacity.

10. Hainan

On March 15, the Hainan Development and Reform Commission issued the "Notice on the Implementation of the 2021 Hainan Province Centralized Photovoltaic Power Generation Grid-Parity Project." The document mandates that the total scale of all centralized photovoltaic power generation grid-parity projects in the province be controlled. The specific scale will be determined by the Provincial Development and Reform Commission based on the province's renewable energy power consumption responsibility weights for 2021 and during the 14th Five-Year Plan period. Each project must not exceed 100,000 kilowatts and must simultaneously construct energy storage devices equivalent to 10% of the registered capacity.