What Exactly Is The Commercial Energy Storage Model?

Energy storage technology is mainly divided into three categories: thermal energy storage, electrical energy storage, and hydrogen (ammonia) energy storage. Among them, electrical energy storage includes electrochemical energy storage, mechanical energy storage, and electromagnetic energy storage.

Energy Storage Is Divided Into: power generation side energy storage, grid side energy storage, user side energy storage according to application scenarios.

Power Generation Side: There are many different demand scenarios, such as new energy grid connection, power peak regulation, system frequency regulation.

Grid Side: Mainly to alleviate grid congestion and delay the expansion and transformation of the transmission and distribution system.

Customer Side: It can be applied to self-use, peak-valley electricity price arbitrage, capacity cost management, and improving power supply reliability.

1. Owner self-investment model

Description: Industrial and commercial enterprise owners invest in the construction of energy storage power stations and enjoy all the benefits. Example: A manufacturing company built a 1M2Mh energy storage power station in its factory area to reduce peak loads and fill valleys and reduce electricity bills.

2. Contract Energy Management Model (EMC)

Description: The energy storage system provider signs a contract with the user. The user does not need to pay the initial investment, but repays the investment cost of the energy storage system by sharing the energy saving benefits. Example: An energy storage service provider provides an energy storage system for a hotel, and the two parties agree to share the profits according to the proportion of electricity savings.

3.leasing Model
Description: The user pays a certain rent to rent the energy storage system, and the ownership of the energy storage system belongs to the leasing company. Example: A retail chain obtains multiple energy storage systems through leasing to reduce electricity costs and improve energy reliability.

4. Virtual Power Plant Model (WP)

Description: A virtual power plant is formed by aggregating multiple distributed energy storage systems to participate in electricity market transactions.

Example: An energy service provider aggregates multiple small industrial and commercial energy storage systems and participates in electricity market transactions as a whole.

5. Electricity Sales Company Model

Describes the cooperation between energy storage systems and electricity sales companies to obtain benefits by providing auxiliary services or participating in the wholesale electricity market.

Example: A power sales company cooperates with a factory with a large energy storage system to jointly participate in electricity wholesale market transactions.

1. Peak-valley Arbitrage

Description: Using the time-of-use electricity price mechanism, charging during the low-valley electricity price period and discharging during the peak electricity price period, earning the price difference from it. Example: A factory uses the energy storage system to charge when the electricity price is low at night, and discharges the next day when the electricity price is higher.

2.new Energy Consumption

Description: Combined with renewable energy power generation systems such as photovoltaics, the utilization rate of renewable energy is improved through energy storage systems. Example: An industrial and commercial user installed photovoltaic panels on its roof and configured an energy storage system to maximize the use of self-produced solar power.

3. Capacity Management

Description: Through the energy storage system, charging during the low-valley period and discharging during the peak period, the maximum demand is reduced, thereby reducing the capacity electricity fee. Example: A company uses the energy storage system to store electricity during the low-peak period and release electricity during the peak period, thereby reducing the maximum demand power.

4. Demand Side Response (DSR)

Description: Participate in the power company's demand side response plan to reduce load or provide electricity when the power system needs it. Example: A storage system operator signed a demand side response agreement with a local power company to reduce load during peak hours.

5. Electricity Spot Market Transactions

Description: Participate in transactions in the electricity spot market and use energy storage systems to quickly respond to market changes.

Example: A storage system operator performs charging and discharging operations in the electricity spot market based on changes in market prices.

6. Power Auxiliary Services

Description: Provide auxiliary services such as frequency regulation and backup power to grid operators.

Example: A storage system operator signs a contract with a grid operator to provide frequency regulation services.

7. Backup Power
Description: As a backup power supply in an emergency, although it does not directly generate economic benefits, it serves as an added value in some cases.

Example: A hospital is equipped with an energy storage system as a backup power supply to ensure uninterrupted power supply during power outages.

Cold Assume that an industrial and commercial user has a 1MW/2MM energy storage system located in a certain area. The peak-valley electricity price difference in this area is large, with peak electricity price periods of 9:00-11:00 and 15:00-17:00, and valley periods of 11:00-13:00 and 22:00-8:00 the next day.

The user adopts the following strategies:

Peak-valley arbitrage:

Charge at a cheaper price during valley periods (11:00-13:00, 22:00-8:00 the next day), and discharge during peak periods (9:00-11:00.15:00-17:00), so as to realize the transfer of peak load and gain benefits from it.

Capacity management:

By charging during valley periods and discharging during peak periods, the maximum demand power is reduced, thereby reducing capacity electricity charges.

Demand-side response

Participate in the local power demand-side response plan, respond to power supply balance through peak shaving and other methods, and obtain economic compensation.