How subsidized energy storage system works?
The subsidized ESS must charge and discharge on demand and are not allowed to charge during peak hours or discharge during valley hours. Besides policies tailored-made for each applications, supportive policies and the ToD tariff boost the development of energy storage industry.
How much subsidy does ESS receive in Northeast China?
In Northeast China, end-user ESS receive RMB 0.1-0.2/kWh of subsidy, on condition that they are subject to the supervision of provincial or higher power electricity dispatch institutions. The subsidized ESS must charge and discharge on demand and are not allowed to charge during peak hours or discharge during valley hours.
How does Yunnan electricity subsidy work?
Yunnan Province provides RMB 4/MW of subsidy for electricity generators losing the bid or undeployed, and RMB 5/MW for those winning the bid or deployed by the grid. There is a RMB 3-8/MW of cap for subsidy application based on regulation mileage. End users profit through the time-of-day (ToD) tariff mechanism.
How does subsidy work in China?
For now, policies tend to provide subsidy for investors and constructors, whilst mandating the price for declaring subsidy. In Northeast China, end-user ESS receive RMB 0.1-0.2/kWh of subsidy, on condition that they are subject to the supervision of provincial or higher power electricity dispatch institutions.
What is a mw subsidy & how does it work?
The subsidy, which covers between one and two thirds of equipment and construction costs depending on technology, was open for applications between the end of August and the end of October 2024. Projects 1MW and larger spanning up to three fiscal years were eligible.
How much subsidy for peak regulation & frequency control?
Therefore, subsidy for peak regulation and frequency control are the most common policies. Shandong Province, for example, offers RMB 0.15/kWh of peak regulation subsidy and RMB 6/MW of AGC frequency control subsidy for ESS with at least 5 MW / 10 MWh of capacity. ESS receiving the subsidy cannot take part in any paid bid for peak regulation.
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