On February 10, 2022, the National Development and Reform Commission (NDRC) and National Energy Administration (NEA) jointly issued the 14th Five-Year Plan for Development and Implementation of New Energy Storage Model (hereinafter referred to as “the Plan”).
In the 14th Five-year Plan period, energy storage is defined as an important technology and basic equipment for establishing new power grids. According to the Plan, energy storage is “critical support (needed) to achieve carbon peak and carbon neutrality”. This seven-chapter document is drafted in accordance with the Outline of the 14th Five-Year Plan of the People’s Republic of China for National Economic and Social Development and the Long-Range Objectives Through the Year 2035 and Guiding Opinions on Accelerating the Development of New Energy Storage Model released by NDRC and NEA on July 23, 2021.
Development goals stated within the Plan are:
· By 2025, the new energy storage model will develop from its preliminary commercial stage to a level where it can be implemented on a larger scale. The innovation and independent technical level will be greatly enhanced.
· By 2035, the new energy storage model will reach a fully commercial level. Its technical and industrial development levels will be world leading. The market system, business model and standardization of the model would also be mature enough to achieve combined development for power systems.
Key technologies and development tasks set to be achieved 2025 according to the Plan include:
· An improvement in the performance of electrochemical energy storage with a system cost reduction of more than 30%.
· A new energy storage model for conventional power sources (such as thermal power and nuclear power), and compressed air energy storage technologies of a hundred MW will achieve engineering application
· Mechanic energy storage technologies (e.g.: fly wheel energy storage of megawatt) will become more mature
· Long-time scale energy storage technologies (for hydrogen energy storage and thermal/cold energy storage) will experience a breakthrough.
The Plan also details a pilot program that aims to support the development of a new energy storage model. The program includes:
· 8 sample technologies under different technical routes to better explore the best approach for future energy storage models.
· 5 provinces as pilot spots to carry out technical trials of the eight sample technologies. (Hebei, Guangdong, Fujian, Jiangsu, and Qinghai)
· 3 demonstration zones for energy storage model development and more demonstration zones to be established in 6 provinces (Shandong, Hebei, Shanxi, Jilin, Inner Mongolia and Ningxia).
For MNCs and foreign stakeholders:
Compared with similar policies released before, the Plan focus more on the technical input and demonstration of a diversified energy storage model. In addition, the document points out a diversified development route by appointing different pilot regions with different technologies. Such arrangements are considered by local experts as a sign to have market entities choose which technology to apply. Therefore, the future development of energy storage may be led by cost and market needs.
The multiple energy storage technologies mentioned in the Plan also indicate new market opportunity for other storage technology owners/developers in China. Even more, the governmental support for energy storage will extend to a wider scope: from sole focus on power side technology to a balance between power side, grid side and user side technologies. It will also generate a positive influence on relevant market stakeholders.
Relevant foreign solution provider components or raw material suppliers are advised to seek possible business opportunities in the pilot areas and regions.
If you need more information on the topic, or the English version of the document, please contact:
assistant@bestao-consulting.com