Driven by the "double carbon" policy to reduce carbon emissions, the national power generation structure will see significant changes. After 2030, with the improvement of energy storage infrastructure and other supporting equipment, China is expected to complete the transition from fossil-based power generation to new energy-based power generation by 2060, with the proportion of new energy generation reaching over 80%.
The "double carbon" policy will drive the pattern of China's power generation materials from fossil energy to new energy gradually, and it is expected that by 2060, China's new energy generation will account for more than 80%.
At the same time, to solve the problem of "unstable" pressure brought by large-scale grid connection on the side of new energy generation, the "distribution and storage policy" on the side of power generation will also bring new breakthroughs for the energy storage side.
In September 2020, at the 57th session of the United Nations General Assembly, China formally proposed the "double carbon" target of achieving "peak carbon" by 2030 and "carbon neutrality" by 2060. China is aiming to achieve "peak carbon" by 2030 and "carbon neutral" by 2060.
By 2060, China will enter the "neutral" stage, with carbon emissions expected to reach 2.6 billion tonnes, a 74.8% decrease compared to 2020.
It is worth noting here that "carbon neutral" does not mean zero carbon dioxide emissions, but rather that the total amount of carbon dioxide or greenhouse gas emissions produced directly or indirectly by corporate production, personal activities and other actions will be offset by planting trees, energy conservation and emission reduction to achieve positive and negative carbon dioxide or greenhouse gas emissions produced by themselves. The goal is to achieve zero emissions by offsetting the carbon dioxide or greenhouse gas emissions generated directly or indirectly by the activities of enterprises, such as planting trees and energy saving.
Our top three industries with high carbon emissions today are：
In the electricity supply sector, which accounts for the highest share, the country will generate 800 million kWh of electricity in 2020.
Driven by the "double carbon" policy to reduce carbon emissions, the national power generation structure will see significant changes.
After 2030, with the improvement of energy storage infrastructure and other supporting equipment, China is expected to complete the transition from fossil-based power generation to new energy-based power generation by 2060, with the proportion of new energy generation reaching over 80%.
With the explosion of the new energy generation side of the market, the energy storage industry has also ushered in new breakthroughs.
Energy storage is inseparable from new energy generation (photovoltaic and wind power).
Both PV and wind power have strong randomness and geographical restrictions, resulting in strong uncertainties in the power generation and frequency of the power generation side, which can bring great impact pressure on the grid side during grid connection.
Energy storage stations can not only effectively solve the problem of "abandoned light and wind", but also "peak and frequency regulation", so that the power generation and frequency of the power generation side can match the planned curve of the grid side, thus realising a smooth grid connection for new energy generation.
At present, China's energy storage market is still in its infancy compared to foreign markets, with the continuous improvement of China's water and other infrastructure.
Pumped storage is still dominant in the market, with 36GW of pumped storage installed in the Chinese market in 2020, much higher than the 5GW of electrochemical storage; however, chemical storage has the advantages of not being subject to geographical restrictions and flexible configuration, and will grow faster in the future; it is expected that electrochemical storage in China will gradually overtake pumped storage in 2060, reaching 160GW.
At this stage in the new energy generation side of the project bidding, many local governments will specify that the new energy generation station with storage not less than 10%-20%, and the charging time is not less than 1-2 hours, it can be seen that "storage policy" will bring very considerable growth for the power generation side of the electrochemical energy storage market.
However, at this stage, because the profit model and cost conduction of power generation side electrochemical energy storage is not yet very clear, resulting in a low internal rate of return, the majority of energy storage stations are mostly policy-led construction, and the business model is still to be solved.
Post time: Jul-21-2022