Load Center Energy Storage Potential and Development Mechanism in Southern China

This report, a collaboration between NRDC and CNESA, analyzes the potential and development mechanisms of energy storage in southern China's load centers, including Guangdong, Guangxi, Guizhou, Yunnan, and Hainan. As the region leads in power market implementation and clean energy resources like hydropower and offshore wind, it faces increasing demand for flexible resources due to rising volatile renewable energy penetration. The study quantifies multi-scenario scale potential for new energy storage, examining supply-side, grid-side, and user-side applications. It reviews existing policies such as distribution and storage mandates and time-of-use electricity pricing that drive front-of-meter and behind-the-meter storage development. Challenges include market mechanism design and regulatory hurdles. The report offers recommendations to enhance source-grid-load-storage interaction, ensuring power supply security and promoting new energy consumption. It serves as a reference for low-carbon power transformation in other Chinese regions.