IEEE Power & Energy Magazine - September/October 2017 - 58

table 1. A summary of experiences of EES development in the United States and China.
United States

China

Installed
capacity

As of mid-2015, more than 21 GW of operational
energy storage existed, mainly in the form of pumped
hydropower, but also growing installations of
Li-ion batteries.

By late 2015, 22.85-GW installed capacity existed,
22.71 GW (99.4%) by pumped hydropower and
141.1 MW (0.6%) by electrochemical energy storage.

Strategic
planning

On the national scale, the Grid Modernization Act was
passed in 2016 to solve the challenges of integrating
conventional and renewable sources with energy
storage and smart grid technologies. Planning goals
and strategies vary on a regional basis.

Most EES technologies are still in the phase of
research, development, and demonstration. No explicit
goal for the scale of EES exists, but national policies
continually encourage EES.

Applications

Applications mainly provide energy arbitrage and
frequency regulation.

Applications are mainly applied in distributed systems/
microgrids, followed by renewable energy integration.

Policies

FERC Order Nos. 755 and 784 prompted the
participation of EES in the frequency regulation market
and improved economics of EES. No federal feed-in
tariffs or subsidies exist. There are different regulations,
state incentives, and utility programs among regions.

In the absence of a national medium- or long-term
vision for EES development or technology road map,
provinces have not adopted any capacity mandate or
incentive program. Policy support has been focused
on demonstration projects.

Market design

Different ISOs/RTOs have different market designs
for EES to participate in wholesale electric markets,
including frequency regulation markets. The
discrepancies in market rules for EES among U.S.
regions present a challenge.

China is undergoing a new round of power sector
reform and is in the process of building wholesale
power markets. Detailed market segments and rules
are needed to reflect the value of EES.

including energy storage, respond to price signals when
it is technically and economically appropriate to do so.
✔✔ Second, better scheduling and control schemes are being developed for system operators and owners of energy storage facilities to fully realize the potential advantages of ESS.
✔✔ Finally, procedures and tools for evaluating the reliability impact of electric grids from various new technologies including storage are also taking shape.
In the new round of power-sector reform in China, more
detailed market segments and market rules that help reflect the
value of EES to the electric grid should be designed to improve
the economics of EES and facilitate its commercialization. The
design of appropriate incentive policies or m
- arket mechanisms
for EES is also important to improve its economics. China is currently conducting a new round of market reform, which provides
opportunities for such a process. In the market transition period,
changes in the valley and peak electricity tariffs and energy subsidies can be considered incentive policy options. In the mature
-market period, market structures and market rules should be constructed and continuously improved so that the value of EES in
key areas-such as satisfying the flexible resource requirements
in renewable energy integration and energy transition-are
reflected and the economics of EES are realized.

For Further Reading
"Assessment of EES for the application the power grids," State
Grid Energy Research Institute, Nov. 2016.
U.S. Department of Energy. Global energy storage database projects [Online]. Available: http://www.energystorage
exchange.org/
58	

ieee power & energy magazine	

"Notice on pilots of ancillary services market reforms
in Northeast China," National Energy Administration,
Oct. 2016.
V. Gevorgian and D. Corbus, "Ramping performance analysis of the Kahuku wind-battery system," Tech. Rep. NREL,
Nov. 2013.
"To promote supply reliability of new energy through the
applications of energy storage systems," China Energy Storage
Alliance, 2013.
R. Sioshansi, P. Denholm, and T. Jenkin, "Market and policy
barriers to deployment of energy storage," Economics Energy
Environ. Policy.

Biographies
Yingchen Zhang is with the National Renewable Energy Laboratory, Golden, Colorado.
Vahan Gevorgian is with the National Renewable -Energy
Laboratory, Golden, Colorado.
Caixia Wang is with the State Grid Energy Research Institute, Beijing, China.
Xuejiao Lei is with the State Grid Energy Research -Institute,
Beijing, China.
Ella Chou is with the National Renewable Energy Laboratory, Golden, Colorado.
Rui Yang is with the National Renewable Energy L
- aboratory,
Golden, Colorado.
Qionghui Li is with the State Grid Energy Research Institute, Beijing, China.
Liping Jiang is with the State Grid Energy Research Institute, Beijing, China.
p&e

september/october 2017


http://www.energystorage http://www.exchange.org/

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