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The Development of Commercial and Industrial Energy Storage is on the Right Time

published: 2023-08-09 17:19

Policy, economics, and energy security are driving the accelerated development of industrial and commercial energy storage.

Policy initiatives are fostering the integration of source network, load and storage systems. New energy storage solutions on the user-side are being encouraged to adapt flexibly. Support for industrial and commercial energy storage has been bolstered by policies, as highlighted in the Blue Book on the Development of New Electric Power Systems. This comprehensive strategy advocates for decentralized demand response, aiming to increase user-side flexibility by more than 5%. This approach promotes efficient energy consumption and encourages the localized development and utilization of new energy resources.

Economically, the price disparity between peak and off-peak hours is widening, leading to an enhanced revenue potential for peak and valley arbitrage models. This trend is anticipated to boost the adoption of commercial and industrial energy storage within the spot market. Economic modeling reveals a promising Internal Rate of Return (IRR) exceeding 13% for current domestic industrial and commercial energy storage projects in Guangdong (only in the context of peak and valley arbitrage). Furthermore, these storage solutions have the capacity to substantially lower electricity costs while generating additional revenue streams through virtual power plants, enabling effective peak shaving strategies.

Energy security requirements necessitate stable power supply for high-load enterprises, particularly during peak periods like winter and summer, to avert production constraints. Industrial and commercial energy storage solutions must simultaneously address peak demand reduction and power supply assurance. The rapid pace of economic growth is propelling power demand, resulting in heightened daily load volatility, particularly during summer peaks. The frequent occurrence of high-demand scenarios imposes power and production limitations on high-load users, underscoring the compelling incentive for industrial and commercial entities to adopt energy storage systems, ensuring uninterrupted production.

The adoption of Integrated Energy Storage Systems (IESS) is on the rise, driving standardization in industrial and commercial product offerings.
The rate of advancement for new supply-side products is accelerating, projecting an uptick in IESS adoption.
Integrated industrial and commercial energy storage products are set to incorporate both AC and DC systems, streamlining components such as DC cables and switches, thereby reducing overall product costs. Additionally, standardized design and systematic deployment eliminate the need for customized solutions, expediting on-site construction and commissioning processes. Capitalizing on technological strides, energy storage products are achieving heightened integration, with most commercial and industrial energy storage companies introducing comprehensive integrated equipment.

Sales channels play a pivotal role in establishing core barriers for companies, while technological upgrades confer distinct advantages to leading enterprises.

Diversified sales channels are emerging as a pivotal competitive edge for industrial and commercial energy storage firms. While individual project capacities may be relatively modest, their concentration within the same geographic regions offers ample potential for expanding both project numbers and overall capacity. This dynamic positions companies possessing a broad spectrum of channel placements and geographical assets to spearhead breakthroughs in the sector.

The swift evolution of technological advancements in industrial and commercial energy storage can erect formidable barriers for enterprises. As energy storage solutions cater predominantly to small industrial and commercial users, stringent demands are placed on product performance, longevity, as well as operational and maintenance attributes. Hence, companies endowed with core technological prowess and robust Research and Development (R&D) capabilities are poised to secure heightened competitiveness within this domain.

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