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Current Development Status of Photovoltaics and Energy Storage2024/1/8

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Recently, governments in many regions have significantly accelerated the clearance speed of existing photovoltaic and wind power projects. Not only have some provinces cut down nearly 67% of photovoltaic projects, but also major provinces have abolished over 2GW of photovoltaic projects.

Since the beginning of this year, six regions including Jiangxi, Anhui, Hubin District of Henan, Shanxi, and Liaoning have successively announced the latest list of wind and solar projects to be scrapped, with a total installed capacity of over 6.85GW of photovoltaic projects to be scrapped.

From the reasons for the abolition of wind and solar projects in various provinces, the development of photovoltaics has brought a certain impact on the stability of the power grid, and has had a certain degree of impact on the power grid. Due to excessive installation in some areas, the power grid is overloaded, and local consumption capacity is limited. In addition, the construction of external transmission channels is lagging behind, forcing many areas to abandon wind and solar power. Therefore, many regions encourage the development of photovoltaic energy distribution and storage, and encourage the installation of energy storage systems to store excess energy and reduce energy waste.

With the development and maturity of the industry, energy storage systems have become a recognized solution to address the volatility of new energy and the problem of solar energy waste. In addition, with the continuous decline in the cost of photovoltaic electricity, supporting energy storage has become necessary. Since 2020, more than ten provinces, including Shandong, Shanxi, Xinjiang, Inner Mongolia, Anhui and Xizang, have successively issued documents requiring supporting energy storage systems for new energy power stations.

On the basis of wind and photovoltaic power, energy storage is configured to further optimize and compensate for wind and photovoltaic power, ultimately improving the stability and continuity of power generation. The innovative technology of photovoltaic+energy storage is mainly applied in the following aspects:

1Industrial usersmainly used in industrial parks to improve the utilization rate of photovoltaics, combined with energy storage systems to store excess electricity, utilize peak valley price differences for arbitrage, reduce demand electricity bills, and participate in demand response to obtain additional benefits.

2Remote areas: mainly distributed in Qinghai, Xizang, Gansu and other regions. These regions mainly solve the problem of local electricity consumption difficulties through the combination of energy storage and distributed photovoltaic power stations.

3Island: mainly used to improve the reliability and stability of island power supply, ensure the production and life of island residents, and also reduce the island's dependence on diesel power generation, protecting the island environment.

4Other: including military microgrids, campus microgrids, community optical storage, optical storage charging stations, etc.

In terms of domestic prices, with the decrease in battery cell costs and the advancement of energy storage system technology, the price of energy storage systems has further decreased, and compared to the energy storage prices in earlier years, it has already gained a certain degree of economy. And the country is vigorously promoting the development of energy storage projects. The application of energy storage or photovoltaic+energy storage will become increasingly widespread in the future.

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