China′s Power Auxiliary Service Market Mechanism and the Economics of Energy Storage Systems Participating in Auxiliary Services

Abstract

[Objective] The large-scale integration of new energy sources has led to an increase in the demand for peaking and frequency regulation of power grid systems. How to improve the market mechanism of power-assisted services has attracted wide attention. Moreover, with the maturity of energy storage battery technology and the advantages of the energy storage system itself, how the economic benefits of energy storage and participation in auxiliary services become a hot spot. [Methods] This paper focused on the development history of China′s power-assisted service market, and combined the data of regional auxiliary service market in the first half of 2018 to analyze the characteristics of auxiliary services in different regions and the trend of auxiliary service market mechanism under the situation of electricity reform; At the same time, it introduced the prospects and subsidy policies of energy storage in the auxiliary service market. [Results] Through the combing of market mechanism and subsidy policy, the huge prospects of energy storage participating in the auxiliary service market were clarified. [Conclusions] The example of thermal power combined with energy storage participating in AGC frequency modulation verified that the energy storage participation auxiliary service has good economics and provides decision support for relevant investors.

Keywords

• auxiliary service market
• energy storage
• economic benefits