grid and storage key to the energy transition

context: Solar and wind power installations have continued to grow rapidly in recent years, with some forecasters predicting that China will achieve its 2030 renewable energy target of 1,200GW installed capacity by the end of this month (i.e. six years ahead of schedule). Increased focus is now being directed toward addressing the variability of renewable energy to increase usage. 

Lin Boqiang 林伯强 Xiamen University China Institute for Studies in Energy Policy dean wrote an article for China Power highlighting the importance of high quality development of grid and energy storage to the energy transition. 

China is expected to add around 70GW of wind and 190GW of solar power installed capacity in 2024 alone, meaning it is set to meet renewable energy targets six years ahead of schedule, according to a new report from China Electric Power Construction Group.

However, unstable and intermittent characteristics of renewable energy will bring challenges for the power system. Load centre power support and emergency standby capacity still need to be strengthened, argues Lin. 

The new supply and demand characteristics of renewable energy mean energy storage is set to become an important part of the power system in the future. Lin views the benefits of energy storage systems as three-fold 

  • on the supply side 
    • joint operation with energy storage can improve frequency regulation of generator units and renewable power reliability 
  • on the grid-side 
    • provide a power buffer for the grid and support stable operation 
    • alleviate pressure of peak adjustment 
  • on the user side 
    • balance between supply and demand, avoiding sudden shortages or grid overload and providing backup power in case of outages 
    • cost-savings for users 
      • storage acts as additional transformer capacity, meaning businesses can avoid replacing transformers when demand exceeds peak capacity
      • charging when prices are low and utilising stored power during times of peak demand can reduce electricity costs

Lin suggests that the industry

  • improve the power market mechanism 
    • guide users to peak shaving and peak shifting through locational marginal pricing and peak demand electricity prices 
  • establish energy storage standards and norms 
    • improve system safety, testing and approval standards 
    • refine the types of energy storage with grid access and application scenarios 
  • promote innovation of energy storage technology through R&D
    • focus on higher energy efficiency, less waste and better economics 

In addition to energy storage, the grid also needs to be transformed and upgraded, writes Lin. This includes transformation and expansion of substations, construction of transmission lines and continued integration of digital infrastructure. Smart grid development will help fully release demand-side resources, ease tensions in power grid dispatch and reduce difficulties balancing supply and demand.