Energy Storage Science and Technology ›› 2021, Vol. 10 ›› Issue (2): 766-773.doi: 10.19799/j.cnki.2095-4239.2020.0370

• Technical Economic Analysis of Energy Storage • Previous Articles     Next Articles

Mechanism experience of foreign grid-side storage participating in frequency regulation auxiliary service market and its enlightenment to China

Hongyu ZHANG(), Yu WANG()   

  1. Institute of Energy, Environment and Economy, Tsinghua University, Beijing 100084, China
  • Received:2020-11-16 Revised:2021-01-21 Online:2021-03-05 Published:2021-03-05

Abstract:

Energy storage is one of the important technologies to support the stable operation of power system with high renewable proportion. The participation of energy storage technology should be considered in the mechanism design of frequency regulation market in China. This paper first summarizes the status of grid-side energy storage technology in frequency regulation. The grid-side energy storage has advantages on response time and output adjustment to provide frequency regulation service for power grid. The development status of storage that provide frequency regulation service, the foreign market mechanisms for grid-side storage participating in the market, including the market access threshold, competing method and price mechanism, are analyzed from the frequency regulation auxiliary service markets of the United States, Australia and the United Kingdom. The differences of the designs and their influences on energy storage participating the market are analyzed. Finally, based on our current situation, there are still some deficiencies and challenges in the design of energy storage participating in the China's frequency regulation market, including that most region do not definitely take storage as market member, the capacity access threshold of storage in most of the China's frequency regulation markets are twice or more than that in typical frequency regulation markets worldwide, and the lower limit of frequency regulation benefit is too low in certain regions to reflect the capacity value of storage. Based on the experience of foreign markets, frequency regulation could bring more than 6 GW needs for storage with suitable market mechanism design and thus storage should be the market member of frequency regulation market. The access threshold should be timely reduced in the design of China's frequency regulation auxiliary service market along with the development of market and technology to allow the participant of small distributed storage. The price mechanism should consider the two-part payment to reflect the capacity value of storage in frequency regulation and guarantee the minimum payment for storage.

Key words: energy storage, power market, market mechanism

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