Energy Storage Station Operations in New Power System Market

This document analyzes the value positioning, business model, and revenue of energy storage station operations in the market-oriented environment of the new power system. It covers the development background of China's new power system, highlighting the rapid growth of renewable energy and the increasing need for energy storage to enhance absorption capacity and manage grid load peak-valley differences. The impact of 'Document No. 136' is examined, which eliminates mandatory new energy storage allocation, shifting independent storage revenue from capacity leasing to electricity energy and ancillary service markets. This policy may widen peak-valley price spreads, boosting revenue, but also intensifies competition in frequency regulation markets. The document also reviews the domestic electricity spot market construction, with examples from Shanxi and Inner Mongolia. Overall, it provides insights into how energy storage can integrate into generation, transmission, distribution, and consumption, offering functions like peak shaving, frequency regulation, and emergency response to improve grid safety and flexibility.