In big data and energy internet, energy storage is the bottleneck technology. There are many energy storage technologies, and energy storage in a broad sense includes heat storage, hydrogen storage, and gas storage. With these links, reasonable adjustments will be made in the future, and now it is worth paying attention to lead-acid batteries, lithium-ion batteries and flow batteries. The alliance database has a global trend of development and change. 97% of the current power system is a pumped storage system, and there is no room for other countries to develop it. The fastest growing is the lithium-ion battery. We always turn lithium-ion batteries into energy storage benchmarks.
China's pumped hydro storage accounts for 99%, and electrochemical energy storage accounts for 1%. The current energy storage field is competitive and complementary, which deserves attention. The load growth rate is fast. The proportion of batteries in China, renewable energy, grid-connected, distributed generation and micro-grids, these statistical results do not represent the future development trend. To a large extent, the application of batteries depends on the business model, and the business model depends on the energy policy. The field of energy storage is more willing to call it a service. The power system can live well. If there is a service, it can improve efficiency and reduce waste.
Cost reduction. Lithium-ion batteries, lead batteries and flow batteries have different utilization rates for different technologies. This picture shows that the cost has dropped, and the cost has dropped by 56%-60% from 2014 to 2017. The latest cost is nine cents, and the market price is one four cents, a little lower than that. Doing energy storage projects is an investment in the system, and a 50% reduction in cost is also a development prospect for the next three to four years.
Look at the new battery technology, first to study the lithium-ion battery. Whether it is a solid-state battery or a sulfur battery, the next 5-10 years are relatively clear. The decline in the scale of traditional batteries is also relatively clear. In the case of benchmarking technologies, other technologies will know whether there are opportunities in the future.
There are many applications in the power industry, and there are representative cases in the domestic model. The energy storage project in 2015 utilized a variety of energy storage technologies. Behind the business model is the priority given to the mobilization of wind farms by the grid. There are many things that energy storage can do. The core problem is that under the existing electricity payment system, as well as policies and future development directions, the energy storage on the grid-connected side of renewable energy can participate, and work can get benefits. Electricity users need to pay, no matter how long they use it. Save electricity and pay the difference.
ancillary services. Most foreign power markets have market mechanisms for auxiliary services. The domestic power market has not yet been established, and the spot market is still being piloted. Although there is no auxiliary service in the electric power market in China, frequency regulation is not just a requirement. The power grid participates in the mechanism of electric auxiliary service, which just happens to change the performance of the unit and increase the performance of the unit as an auxiliary service. The cost of construction projects under construction is much lower than at that time, and the two dimensions of cost reduction and power auxiliary services and power station demand have accelerated the development of the energy storage industry.
The development prospect of energy storage commercialization in China. Individual power stations have profit models. The northwest mainly relies on old photovoltaic power stations with high electricity prices, but power rationing is relatively serious. There is a problem with the ancillary service market, because it is not the concept of a foreign electricity spot market, and there is a demand for ancillary services. North America has a 5% renewable energy share, and its ancillary services account for 2.5% of the electricity market. The proportion in the UK is as high as 27%, and in 27% of the renewable energy equipment, the service transaction value accounts for more than 7% of the electricity market. If the power consumption side can participate in the compensation mechanism of the power demand side or the mechanism of peak regulation and frequency regulation, its economy will be improved. Competitiveness is gradually formed as the cost is reduced. If it is further promoted by the policy environment, it will see its accelerated development process.
Car-electric interconnection. The planning and development of electric vehicles is very delicate. Within ten years, the system on the user side will have an economic advantage over the car. It's only a matter of time, the grid is a big support for the development of electric vehicles. If we're going to utilize it, the cost to grid capacity is very low. If energy storage is cheap, it will expand more widely when used.
Domestic energy storage direct and indirect policies. Domestic attention to energy storage is less than that of foreign countries, and batteries have been gradually emphasized since the 12th Five-Year Plan. Many policies can see that energy storage is a supporting technology, and different projects support it. Five ministries and commissions just issued policies in October, and the Energy Administration, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Science and Technology, and the Ministry of Industry and Information Technology issued guidance on the development of energy storage to prepare a book for the energy storage industry. Because its core is different fields, the core technology is one aspect, mainly for commercialization. Renewable energy, the flexibility of the power system, the diversification of power consumption and energy storage have clear policy support points. Provides service to the system, and the power system compensates you. Compensation now should be given to the functional price. In the follow-up, practitioners and participants of energy storage projects need to promote regional compensation policies for local auxiliary services, and there should be a reference system for how much compensation. To establish a systematic system to support industrial development. In 2011, it was a batch of demonstration projects. In 2013, the project was purely a demonstration project, and everyone studied the technical feasibility. In 2015, enterprises began to demonstrate commercialization, which may have certain effects. The development history of the industry can be seen on the power consumption side, auxiliary services and power generation side. Frequency regulation auxiliary services for energy storage on the power generation side, and large-scale energy storage peak-shaving power stations on the grid side. The user side includes photovoltaics, energy storage, and smart inverters. From abroad, power auxiliary services will be improved.