the integration of power and electronics provides
a powerful platform for the smart grid. As energy
storage technologies and electricity market
reform progress, large-scale renewable energy
can be used to power industrial production for
the whole of society; and data storage, information processing and decision analysis can be
integrated into the industrial system and become
the engine that starts the smart electricity revolution, after which it will then undertake the
historical mission of driving the energy revolution and providing industrial civilization with
green energy.
6.3.4 Strategy and Policies for Energy
Storage Development
First, the strategic positioning of energy storage
in the energy revolution should be clarified. The
energy revolution is an important engine for
China to develop a modern energy system and
accomplish the energy transition. Energy storage
will play an important role in this. Physical and
chemical energy storage, hydrogen and fuel cells,
and heat storage technologies will be developed
and compete against each other. Eventually, one
or two of them will win out. Energy storage will
be widely deployed and change the structure and
business model of the power sector, thus helping
to build a modern energy system.
Second, technology and the energy system
should evolve in a coordinated fashion. The
biggest obstacle facing energy storage is high
cost. The most practical applications are likely to
be with users. Other applications like generation
and transmission have limited growth potential.
Energy storage should be coordinated with other
technologies like heat storage and control to
deliver synergies and avoid rushing into the
market alone. It should be used as a support
service for the power distribution network,
industrial parks and similar applications.
Third, effort should be made to tailor a market
mechanism conducive to the value of energy
storage. China should: (i) identify cost-effective
niche markets and support the deployment of
energy storage technologies in these markets. It
should incentivise the development of existing
energy storage technologies to improve their
efficiency and flexibility; (ii) create a strong
market and regulatory environment by eliminating price distortions and vested interests; and
support R&D and demonstration projects for
early-stage energy storage technologies, including high-temperature heat storage and scalable
battery and hybrid energy storage systems;
(iii) use the market mechanism to tap the
potential of pumped storage power stations;
(iv) follow the market economy principle of
“who benefits and who shares costs” to adjust the
two-part tariff mechanism; and (v) in combination with the electricity market reform process,
create a competition-based pricing system and
bidding rules for electricity ancillary services to
encourage pumped storage power stations to
participate in the market.
Fourth, a standards system should be developed for the energy storage industry. China
should: (i) benchmark its industry against international leaders, make incremental improvements in energy storage technologies, assess
existing energy storage facilities, and evaluate
the potential for energy storage in regions and
energy markets; (ii) develop international and
national collaborations on data to speed up
research, monitor progress and unblock R&D
bottlenecks; and (iii) based on the experience
from pilot projects, improve the related industry
standards.
6.4 Long-Distance Power
Transmission
6.4.1 Drivers and Characteristics
of Long-Distance Power
Transmission
(1) Drivers
Misalignment between energy sources and load
centres is common in many countries and
regions. Load centres generally do not have
abundant energy sources. They enjoy strong
economic growth and have high population
concentrations, resulting in a large and increasing
demand for power. In contrast, regions with
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S. Zifeng and N. Dickens
a powerful platform for the smart grid. As energy
storage technologies and electricity market
reform progress, large-scale renewable energy
can be used to power industrial production for
the whole of society; and data storage, information processing and decision analysis can be
integrated into the industrial system and become
the engine that starts the smart electricity revolution, after which it will then undertake the
historical mission of driving the energy revolution and providing industrial civilization with
green energy.
6.3.4 Strategy and Policies for Energy
Storage Development
First, the strategic positioning of energy storage
in the energy revolution should be clarified. The
energy revolution is an important engine for
China to develop a modern energy system and
accomplish the energy transition. Energy storage
will play an important role in this. Physical and
chemical energy storage, hydrogen and fuel cells,
and heat storage technologies will be developed
and compete against each other. Eventually, one
or two of them will win out. Energy storage will
be widely deployed and change the structure and
business model of the power sector, thus helping
to build a modern energy system.
Second, technology and the energy system
should evolve in a coordinated fashion. The
biggest obstacle facing energy storage is high
cost. The most practical applications are likely to
be with users. Other applications like generation
and transmission have limited growth potential.
Energy storage should be coordinated with other
technologies like heat storage and control to
deliver synergies and avoid rushing into the
market alone. It should be used as a support
service for the power distribution network,
industrial parks and similar applications.
Third, effort should be made to tailor a market
mechanism conducive to the value of energy
storage. China should: (i) identify cost-effective
niche markets and support the deployment of
energy storage technologies in these markets. It
should incentivise the development of existing
energy storage technologies to improve their
efficiency and flexibility; (ii) create a strong
market and regulatory environment by eliminating price distortions and vested interests; and
support R&D and demonstration projects for
early-stage energy storage technologies, including high-temperature heat storage and scalable
battery and hybrid energy storage systems;
(iii) use the market mechanism to tap the
potential of pumped storage power stations;
(iv) follow the market economy principle of
“who benefits and who shares costs” to adjust the
two-part tariff mechanism; and (v) in combination with the electricity market reform process,
create a competition-based pricing system and
bidding rules for electricity ancillary services to
encourage pumped storage power stations to
participate in the market.
Fourth, a standards system should be developed for the energy storage industry. China
should: (i) benchmark its industry against international leaders, make incremental improvements in energy storage technologies, assess
existing energy storage facilities, and evaluate
the potential for energy storage in regions and
energy markets; (ii) develop international and
national collaborations on data to speed up
research, monitor progress and unblock R&D
bottlenecks; and (iii) based on the experience
from pilot projects, improve the related industry
standards.
6.4 Long-Distance Power
Transmission
6.4.1 Drivers and Characteristics
of Long-Distance Power
Transmission
(1) Drivers
Misalignment between energy sources and load
centres is common in many countries and
regions. Load centres generally do not have
abundant energy sources. They enjoy strong
economic growth and have high population
concentrations, resulting in a large and increasing
demand for power. In contrast, regions with
354
S. Zifeng and N. Dickens