Since October, all grid-side standalone new energy storage facilities in Zhejiang Province have been integrated into the provincial electricity spot market. During the National Day holiday, Zhejiang’s 32 grid-side energy storage power stations recorded a cumulative charging volume of nearly 39 million kWh and a discharging volume exceeding 33 million kWh. These stations not only helped balance power supply and demand across the province but also generated three streams of revenue: spot price spreads, ancillary services and capacity compensation. Through market-based mechanisms, Zhejiang leverages “price signals” to allocate energy storage resources in a scientific manner.
In recent years, new energy has developed rapidly in Zhejiang. The province now has a total installed power capacity of 189 GW, among which wind and solar new energy capacity stands at 76.24 GW, accounting for more than 40% of the total. As installed capacity expands, power generation from renewables becomes increasingly volatile due to weather fluctuations. Grid-side energy storage acts as a “reservoir” for the power grid, supplying flexible regulation resources for provincial power dispatch.
“We mainly follow instructions from the provincial dispatch center for charging and discharging. Previously, charging was priced under peak-valley tariffs while discharging was settled at fixed rates. Now that we join the spot market, both charging and discharging prices fluctuate with market conditions, enabling us to capture price spreads,” said Sun Liangfei, Station Master of Shanzhong Energy Storage Station. At present, Zhejiang has built 2.39 GW of grid-side energy storage. Compared with the province’s peak power load exceeding 100 GW, there remains substantial room to boost regulation capacity.
To encourage more enterprises to participate in construction and maximize the regulating value of energy storage, Zhejiang Provincial Development and Reform Commission and other authorities jointly issued a document on September 11. It stipulates that starting from October 1, provincial grid-side standalone new energy storage can participate in the electricity market. First, charging and discharging price spreads are calculated based on real-time market prices. Second, grid-side energy storage under unified provincial dispatch can also access the frequency regulation ancillary service market, meaning “regulation capacity” can be monetized alongside electricity sales. Third, capacity compensation will still be granted according to storage scale, providing a “base income” even when assets serve as standby resources.
“During the National Day holiday, we charged and discharged around 3 to 4 times per day at a power output of 100 MW,” Sun Liangfei noted. According to State Grid Zhejiang Electric Power, a large number of local storage assets charged during off-peak hours over the holiday. The maximum charging power of provincial grid-side standalone new energy storage reached 2.07 GW, supporting the full consumption of local new energy power.
