Industrial and commercial energy storage is an important application scenario of new energy storage on the user side, mainly configured in industrial parks, data centers, office buildings and other scenarios, to be used for Time-of-use (TOU) arbitrage or as a back-up power source, to improve the reliability of the power supply and the quality of energy.
Over the past year, in the policy continues to guide, the demand for power backup increased, as well as the distribution of storage economy to improve the situation, industrial and commercial energy storage ushered in the industrialization of the first year. As an experienced manufacturer in the industry of C&I ESS, we can provide high quality power-wall battery, rack mount battery and other energy storage products for your C&I energy solutions.
Commercial and industrial energy storage market is increasing
In 2023, C&I energy storage system is exceptionally hot, China Zhejiang, Guangdong, Jiangsu and other regions with large peak and valley electricity price differences are the key regions for the development of commercial and industrial energy storage, especially Zhejiang, which is currently the best development conditions in China, with a high level of return.
In 2023, Zhejiang has 147 new investment and operation of commercial and industrial (C&I) energy storage projects, with a total scale of 146.7 MW/301.62 MWh. And Jiangsu has 37 industrial and commercial energy storage projects with a scale of 141 MW/846 MWh.
Good tariff policy conditions are a prerequisite for the development of industrial and commercial energy storage. In recent years, the government has introduced a series of supportive policies to implement the two-charging and two-discharge strategy, and to give support to industrial and commercial energy storage projects in the form of capacity subsidies, discharge subsidies and investment subsidies. Such as extending the peak hours of electricity consumption, widen the peak and valley time-sharing tariff spread, the implementation of major holidays deep valley tariffs, and industrial and commercial users and industrial and commercial users to regulate the peak and valley tariffs floating ratio, and so on.
These policies inspire industrial and commercial energy storage investment enthusiasm. 2024 industrial and commercial energy storage will grow several times, the market size is likely to be 3-5 times more than last year.
Some practitioners judge that, with the industrial and commercial energy storage EPC prices continue to decrease, China’s industrial and commercial energy storage projects in Zhejiang can recover costs in 3 years, Jiangsu cost recovery period in 4 years up and down, Hubei, Chongqing and other places 5 years can be paid back.
This year, energy storage core capacity will be generally upgraded from the original 280Ah switch to 314Ah, with energy density further enhancement, the system cost further decline, the project profitability continues to improve, industrial and commercial energy storage projects continue to increase.
The challenges that commercial and industrial energy storage may have
For industrial and commercial energy storage projects, many investors will raise concerns, for example, project safety, whether the future electricity spot market will have an impact on the transaction, whether there is no peak and valley spreads after the saturation of energy storage projects. Safety is the basis for the development of industrial and commercial energy storage, but the most central issue is the long-term return, only with the economy, can really promote the industrialization process.
Unlike PV projects as an input point to the power system, energy storage is a regulator that takes on commands from the source side, the grid, and the user, making its investment and construction, operation and maintenance management very difficult. Part of the industrial and commercial energy storage has the problems of low system efficiency, high failure rate and high operational losses, which leads to customers not being able to achieve the expected benefits. Moreover, industrial and commercial energy storage is mainly used in industrial parks, office buildings and other densely populated places, which poses a greater challenge to the safety design of energy storage. Our LiFePO4 battery is equipped with a BMS to ensure the safe operation of the battery.
Methods to deal with investment risks in commercial and industrial energy storage
One-stop service for investment, construction, operation and maintenance of energy assets is the second growth curve of the energy storage industry. And the terminal goal of the industry’s development is that after the liberalization of the electricity spot market, commercial and industrial energy storage can achieve a higher degree of certainty of earnings. This requires the joint efforts of all parties, including battery costs, financial costs continue to reduce, technology continues to improve, virtual power plants, auxiliary services, demand response and a series of ancillary policy support, so that the entire ecology tends to be more healthy.
Digitization will promote the development of industrial and commercial energy storage. On the one hand, with digital technology as the core, establish a highly integrated digital energy storage system for the whole link. On the other hand, build energy storage intelligent operation and maintenance system, carry out predictive maintenance, predict and identify potential risks in advance, and improve enterprise operation and maintenance operation ability.
Digitization is not to make data visible, but to solve problems through Digitization. Energy storage in new power systems faces two major issues. The first is to focus on safety and intrinsic performance, no combustion, no explosion, and to reduce the rate of battery degradation through rational charge and discharge management. The second is to maximize the value of energy storage, through load forecasting, price signals in the power market or demand changes in the grid, to flexibly adjust the mode of operation and increase revenue.
The whole operation cycle of industrial and commercial energy storage is up to 10 years, which puts high requirements on the quality of energy storage products, and good electric core and energy storage converter products are used. Contact us to get a free quote for LiFePO4 battery cell.
