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Current status and development prospects of commercial energy storage

1. Current status of commercial energy storage

The commercial energy storage market includes two types of usage scenarios: photovoltaic commercial and non-photovoltaic commercial. For commercial and large industrial users, self-use of electricity can also be achieved through the photovoltaic + energy storage supporting model. Since the peak hours of electricity consumption are relatively consistent with the peak hours of photovoltaic power generation, the proportion of self-consumption of commercial distributed photovoltaics is relatively high, and the energy storage system capacity and photovoltaic power are mostly configured at 1:1.

For scenarios such as commercial buildings, hospitals, and schools that are not suitable for the installation of large-scale photovoltaic self-generation, the purpose of peak-cutting and valley-filling and capacity-based electricity prices can be reduced by installing energy storage systems.

According to BNEF statistics, the average cost of a 4-hour energy storage system dropped to US$332/kWh in 2020, while the average cost of a 1-hour energy storage system was US$364/kWh. The cost of energy storage batteries has been reduced, the system design has been optimized, and the system charging and discharging time has been standardized. The improvement will continue to promote the penetration rate of commercial optical and storage supporting equipment.

2. Development prospects of commercial energy storage

Commercial energy storage has broad prospects for development. Following are some of the factors driving the growth of this market:

Increased demand for renewable energy:The growth of renewable energy sources such as solar and wind power is driving demand for energy storage. These energy sources are intermittent, so energy storage is required to store excess energy when it is produced and then release it when needed. Growing demand for grid stability: Energy storage can help improve grid stability by providing backup power during outages and helping regulate voltage and frequency.

Government policies:Many governments support the development of energy storage through tax exemptions, subsidies and other policies.

Falling costs:The cost of energy storage technology is falling, making it more affordable for businesses and consumers.

According to Bloomberg New Energy Finance, the global commercial energy storage market is expected to grow at a compound annual growth rate (CAGR) of 23% from 2022 to 2030.

Here are some commercial energy storage applications:

Peak shaving and valley filling:Energy storage can be used for peak shaving and valley filling, helping companies reduce electricity bills.

Shifting loads:Energy storage can shift loads from peak to off-peak hours, which can also help businesses reduce their electricity bills.

Backup power:Energy storage can be used to provide backup power during power outages.

Frequency regulation:Energy storage can be used to help regulate the voltage and frequency of the grid, thereby improving grid stability.

VPP:Energy storage can be used to participate in a virtual power plant (VPP), a set of distributed energy resources that can be aggregated and controlled to provide grid services.

The development of commercial energy storage is a key part of the transition to a clean energy future. Energy storage helps integrate renewable energy into the grid, improves grid stability and reduces emissions.

Post time: Jan-24-2024
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