Shared grid scale battery energy storage, is the model a solution for commercialization?

In the ever-expanding landscape of the sharing economy?around the world, new horizons are being explored, and energy markets are no exception. Unlike traditional individually owned large grid scale battery energy storage, customers in a community can provide optimal energy management services through energy sharing and storage sharing.

Recent developments, such as the successful grid connection of the Jiangsu Fengchu 200MW/400MWh Energy storage station in Nantong City, China, marks?a significant stride towards revolutionizing the conventional models in the energy sector. Notably, ZTT Group was selected to participate in this largest independent shared battery energy storage project.

Situated in Scenic Avenue Park, 2 kilometers from the coastline of Rudong County, the battery energy storage station is equipped with 80 lithium iron phosphate battery storage systems (The project comprises of 78 sets of 2.5MW/5MWh conventional energy storage units by others, and 2 sets of 2.5MW/5MWh provided by ZTT). The operation of the energy storage station provides a valuable insight of the potential of shared energy storage as a solution compared to the implementation and challenges of traditional battery energy storage.

Shared grid scale battery energy storage: ?Unlocking opportunities

Conventional battery energy storage models?face hurdles, including high individual installation costs and challenges in matching demand capacity, leading to issues of storage system underutilization. The urgency for the commercialization of battery storage has never been more apparent.

Currently, most provinces in China have introduced policies regarding the integration of energy storage with new energy stations, with the storage-to-capacity ratio typically ranging from 10% to 20%. However, the utilization efficiency of the first batch of interconnected new energy storage projects in the country demonstrates an inadequate utilization. Additionally, the investment, construction, and operation of new energy storage projects are usually borne by power generation companies, leading to significant economic costs,?and to an?extent hindering the sustainable development of energy storage stations.

Shared battery energy storage has the potential to be a solution for the commercialization of grid scale battery energy storage, as it can overcome challenges faced by traditional battery energy storage, such as high installation costs, demand mismatch, and low equipment utilization. Shared grid scale battery energy storage can also provide multiple benefits to different stakeholders, such as reducing peak load, enhancing grid stability, increasing renewable energy penetration, and improving power quality.

Additionally, shared grid scale battery energy storage emerges as a momentous change?by breaking the traditional "1-to-1" correspondence between energy storage and power generation stations. This innovative model allows new energy enterprises to lease battery energy storage stations, reducing initial capital investments significantly.

The core principles of shared grid scale battery energy storage: Unlocking efficiency and maximizing benefits

The essence of shared energy storage lies in the separation of ownership and usage rights. That is, users of energy storage facilities can lease idle storage resources to service providers at a negotiated price, enhancing resource utilization and providing additional benefits to owners.

Benefits of shared grid scale energy storage Include:

• Shared Resource Utilization: Providing peak shaving auxiliary services and frequency adjustment auxiliary services based on the adjustment of the power system.
• Shared Construction: Various enterprises such as power generation and electric power are self-built or jointly built, and business entities can jointly operate and share energy storage.
• Shared Equipment: Leasing capacity rights and energy storage services, enabling energy storage equipment leasing.
• Shared Services: Meeting the diverse needs of enterprises in energy management, grid electricity sales, and customized electricity consumption services.

In summary, shared grid-scale battery energy storage optimizes costs, enhances grid reliability, and supports the transition to a more sustainable and resilient energy infrastructure.

A global shift: ?Shared grid scale battery energy storage?on the rise

Over a decade ago, community renewable energy programs pioneered the concept of shared energy, allowing multiple customers to partake in the economic benefits of renewable energy systems. Countries like the UK, EU, China, and the US have made strides in implementing and piloting shared energy storage. The UK deployed shared energy storage on the user side in 2012, the EU deployed shared energy storage platforms in communities in 2016, and the US had planned to connect batteries in Massachusetts by providing incentives to customers in 2019.

Shared battery energy storage, through concepts like community or grid-scale storage, can contribute significantly to the commercialization of battery storage. It allows for optimized resource utilization, cost-sharing among participants, and improved overall efficiency in managing energy demands. However, it is important to note that the commercialization of battery energy storage is a complex issue that requires a comprehensive approach.

With?the "Independent + Sharing" business model, shared battery energy storage?enhances the utilization and operational value of battery energy storage stations, to create a truly accessible and resilient battery energy storage market. As we witness the successful realization of ZTT’s Jiangsu Fengchu 200MW/400MWh project, we envision a future where shared battery energy storage develops as the cornerstone in the global transition towards sustainable energy solutions.

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ZTT New Energy

With research, design, manufacturing, and overseas offices around the world, ZTT New Energy offers significant competitive advantages. Including high-tech full-automatic manufacturing & testing workshops, dedicated account management, and order follow-up, the ability to respect production lead time, and global engineering teams experienced in developing new-to-market product solutions specially customized requirements.

ZTT, which started on Optical Fiber Communications in 1992, accessed Smart Grid in 2002 and commenced work on the Renewable Energy field in 2012, now spans the globe with sales & service networks in dozens of locations. With over 30 years of sustainable innovation, ZTT helps make a wide variety of products across industries such as telecom communication, power transmission, marine & offshore and renewable energy.

Ever since it first started developing the Lithium-ion battery and BESS, ZTT has been expanding a new era of focusing on power delivery and optimizing energy storage to achieve Carbon Emission Peak and Carbon Neutrality.

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