A news urged the energy storage sector to rise sharply: Guangdong energy storage and pumped storage auxiliary services were included in the electricity price
2021-12-10
As of the closing on December 8, energy storage concept stocks such as Zhiguang electric and Wenshan power closed at the limit. The energy storage index compiled by Wande rose by 2.56%, and Enjie shares, Shengyang shares, kestar and other stocks also rose by more than 5%.
The dancing of energy storage sector is usually related to favorable policies, and this time is no exception. The reason for the rise is mainly due to the approval of Guangdong Provincial Development and Reform Commission to implement the implementation plan for agency power purchase of Guangdong power grid enterprises (Trial) (hereinafter referred to as the "plan").
"Guangdong plan" makes the market see the profit prospect of energy storage investment
The scheme points out that the agency power purchase price includes three parts: average on grid price, auxiliary service cost, and allocation of new profits and losses generated by ensuring the stability of residential and agricultural power prices. At this stage, the auxiliary service costs mainly include the costs of energy storage and pumped storage power stations and demand side response. The relevant costs are shared by all industrial and commercial users who directly participate in market transactions and power grid enterprises purchase electricity on behalf of power grid enterprises. The cost of energy storage and pumped storage power stations shall be determined according to the actual monthly cost of power grid enterprises, and the cost of demand side response shall be calculated according to the relevant provisions of the state and Guangdong Province.
"This indicates that the market will pay for auxiliary services such as energy storage and pumped storage, which is of key significance for opening the energy storage market." A researcher who has long been engaged in public utility policy research told the Shanghai Securities Journal that as early as 2018, China's power grid side energy storage showed signs of rapid development, and the investment enthusiasm of power grid enterprises for power storage projects was once high. However, with the introduction of the measures for the supervision and review of transmission and distribution pricing costs in 2019, it is clear that pumped storage power stations and electric energy storage facilities are excluded from the transmission and distribution price, the enthusiasm for energy storage investment on the grid side has decreased sharply. The industry has been waiting to clarify the transmission and distribution price transmission mechanism related to energy storage.
In March this year, China decided to build a new power system with new energy as the main body, and the role of energy storage in the new power system has been paid attention to. Policies to encourage the large-scale development of energy storage have been released one after another, making the market gradually see the economy of investing in energy storage projects.
The internal rate of return of energy storage investment is expected to increase significantly
In May this year, the national development and Reform Commission issued the opinions on further improving the price formation mechanism of pumped storage, which proposed to further improve the price formation mechanism of pumped storage by adhering to the two-part electricity price policy. This is a system that combines the basic electricity price corresponding to capacity with the electricity price corresponding to power consumption to determine the electricity price.
According to the document, the capacity electricity fee corresponding to the pumped storage capacity electricity price approved by the government shall be paid by the power grid enterprise. The utility researcher of Industrial Securities believes that Guangdong Province has made it clear that the expenses of energy storage and pumped storage power stations are determined according to the actual cost and shared by all industrial and commercial users, so as to further rationalize the electricity price mechanism and benefit the great development of energy storage and pumped storage.
Some researchers in the public utility industry said that it is necessary to look forward to the development space of the energy storage industry in combination with a series of recent electricity price reform policies.
Since July, many places have introduced a combination of electricity price policies, which has significantly increased the power consumption cost of high-energy consuming enterprises, and further expanded the peak valley price difference of electricity price. The profit model of industrial and commercial energy storage application is peak valley arbitrage. The new electricity price policy will significantly improve the economy of industrial and commercial energy storage and greatly shorten the return period of energy storage investment, so as to stimulate the growth of industrial and commercial energy storage demand.
According to the latest report of Dongfang securities on power equipment and new energy industry, taking Jiangsu Province as an example, it is assumed that the initial investment cost of energy storage system is 1.6 yuan / wh and the battery life is 10 years. According to the latest electricity price policy, due to the adjustment of electricity peak hours and prices, the energy storage is changed from one charge and one discharge to two charge and two discharge every day, and the peak valley price difference is increased from 0.72 yuan / kWh to 1.59 yuan / kWh. Before and after the policy change, the payback period of energy storage investment will be shortened from 6.9 years to 3.9 years, the internal rate of return will be increased from 7% to 21%, the economy will be significantly improved, and the investment willingness of industrial and commercial users is expected to increase.
The rapid growth of energy storage demand is good for relevant equipment manufacturers
The industry generally believes that the rapid growth of industrial and commercial energy storage demand will be the first to benefit relevant equipment manufacturers. Taking Ningde times, the leader in the battery industry, as an example, the revenue of energy storage system increased 7 times year-on-year in the first half of 2021, and the gross profit margin of energy storage system exceeded that of power battery system, up to 37%.
More enterprises have recently joined the team of energy storage equipment and energy storage operation. WanLiYang, the main auto parts business, announced in late November that it planned to acquire 51% of the shares of Zhejiang WanLiYang Energy Technology Co., Ltd. (hereinafter referred to as "WanLiYang energy company") held by the controlling shareholder WanLiYang Group Co., Ltd. in cash. The acquisition will help the company develop businesses such as energy storage power stations and spot trading in the power market, and further broaden the company's industrial layout.
WanLiYang said on the investor interaction platform on December 8 that WanLiYang energy company has put into operation three energy storage power stations in Guangdong Province and one energy storage power station in Gansu Province, with a total installed capacity of about 40mW. The energy storage power station to be invested and constructed under the signed agreement has a total installed capacity of about 700MW. The project is located in Guangdong Province and Zhejiang Province.
Camel shares recently said in the interactive platform that the company will take the low-voltage application and energy storage of lithium batteries as the starting point of the company's new energy strategy, and seize the light mixed lithium battery market with high power, high safety and long life.
Since August this year, camel Co., Ltd. has successively signed a number of cooperation agreements with the Three Gorges power. Camel Co., Ltd. said that the company's provision of energy storage EPC service for Three Gorges power is a key step for the company to enter the energy storage field and will effectively promote the development of the company's energy storage business.
The dancing of energy storage sector is usually related to favorable policies, and this time is no exception. The reason for the rise is mainly due to the approval of Guangdong Provincial Development and Reform Commission to implement the implementation plan for agency power purchase of Guangdong power grid enterprises (Trial) (hereinafter referred to as the "plan").
"Guangdong plan" makes the market see the profit prospect of energy storage investment
The scheme points out that the agency power purchase price includes three parts: average on grid price, auxiliary service cost, and allocation of new profits and losses generated by ensuring the stability of residential and agricultural power prices. At this stage, the auxiliary service costs mainly include the costs of energy storage and pumped storage power stations and demand side response. The relevant costs are shared by all industrial and commercial users who directly participate in market transactions and power grid enterprises purchase electricity on behalf of power grid enterprises. The cost of energy storage and pumped storage power stations shall be determined according to the actual monthly cost of power grid enterprises, and the cost of demand side response shall be calculated according to the relevant provisions of the state and Guangdong Province.
"This indicates that the market will pay for auxiliary services such as energy storage and pumped storage, which is of key significance for opening the energy storage market." A researcher who has long been engaged in public utility policy research told the Shanghai Securities Journal that as early as 2018, China's power grid side energy storage showed signs of rapid development, and the investment enthusiasm of power grid enterprises for power storage projects was once high. However, with the introduction of the measures for the supervision and review of transmission and distribution pricing costs in 2019, it is clear that pumped storage power stations and electric energy storage facilities are excluded from the transmission and distribution price, the enthusiasm for energy storage investment on the grid side has decreased sharply. The industry has been waiting to clarify the transmission and distribution price transmission mechanism related to energy storage.
In March this year, China decided to build a new power system with new energy as the main body, and the role of energy storage in the new power system has been paid attention to. Policies to encourage the large-scale development of energy storage have been released one after another, making the market gradually see the economy of investing in energy storage projects.
The internal rate of return of energy storage investment is expected to increase significantly
In May this year, the national development and Reform Commission issued the opinions on further improving the price formation mechanism of pumped storage, which proposed to further improve the price formation mechanism of pumped storage by adhering to the two-part electricity price policy. This is a system that combines the basic electricity price corresponding to capacity with the electricity price corresponding to power consumption to determine the electricity price.
According to the document, the capacity electricity fee corresponding to the pumped storage capacity electricity price approved by the government shall be paid by the power grid enterprise. The utility researcher of Industrial Securities believes that Guangdong Province has made it clear that the expenses of energy storage and pumped storage power stations are determined according to the actual cost and shared by all industrial and commercial users, so as to further rationalize the electricity price mechanism and benefit the great development of energy storage and pumped storage.
Some researchers in the public utility industry said that it is necessary to look forward to the development space of the energy storage industry in combination with a series of recent electricity price reform policies.
Since July, many places have introduced a combination of electricity price policies, which has significantly increased the power consumption cost of high-energy consuming enterprises, and further expanded the peak valley price difference of electricity price. The profit model of industrial and commercial energy storage application is peak valley arbitrage. The new electricity price policy will significantly improve the economy of industrial and commercial energy storage and greatly shorten the return period of energy storage investment, so as to stimulate the growth of industrial and commercial energy storage demand.
According to the latest report of Dongfang securities on power equipment and new energy industry, taking Jiangsu Province as an example, it is assumed that the initial investment cost of energy storage system is 1.6 yuan / wh and the battery life is 10 years. According to the latest electricity price policy, due to the adjustment of electricity peak hours and prices, the energy storage is changed from one charge and one discharge to two charge and two discharge every day, and the peak valley price difference is increased from 0.72 yuan / kWh to 1.59 yuan / kWh. Before and after the policy change, the payback period of energy storage investment will be shortened from 6.9 years to 3.9 years, the internal rate of return will be increased from 7% to 21%, the economy will be significantly improved, and the investment willingness of industrial and commercial users is expected to increase.
The rapid growth of energy storage demand is good for relevant equipment manufacturers
The industry generally believes that the rapid growth of industrial and commercial energy storage demand will be the first to benefit relevant equipment manufacturers. Taking Ningde times, the leader in the battery industry, as an example, the revenue of energy storage system increased 7 times year-on-year in the first half of 2021, and the gross profit margin of energy storage system exceeded that of power battery system, up to 37%.
More enterprises have recently joined the team of energy storage equipment and energy storage operation. WanLiYang, the main auto parts business, announced in late November that it planned to acquire 51% of the shares of Zhejiang WanLiYang Energy Technology Co., Ltd. (hereinafter referred to as "WanLiYang energy company") held by the controlling shareholder WanLiYang Group Co., Ltd. in cash. The acquisition will help the company develop businesses such as energy storage power stations and spot trading in the power market, and further broaden the company's industrial layout.
WanLiYang said on the investor interaction platform on December 8 that WanLiYang energy company has put into operation three energy storage power stations in Guangdong Province and one energy storage power station in Gansu Province, with a total installed capacity of about 40mW. The energy storage power station to be invested and constructed under the signed agreement has a total installed capacity of about 700MW. The project is located in Guangdong Province and Zhejiang Province.
Camel shares recently said in the interactive platform that the company will take the low-voltage application and energy storage of lithium batteries as the starting point of the company's new energy strategy, and seize the light mixed lithium battery market with high power, high safety and long life.
Since August this year, camel Co., Ltd. has successively signed a number of cooperation agreements with the Three Gorges power. Camel Co., Ltd. said that the company's provision of energy storage EPC service for Three Gorges power is a key step for the company to enter the energy storage field and will effectively promote the development of the company's energy storage business.
Source: energy storage network