Development of Energy Storage for the Expanding Renewable Energy in China Electric Power Planning & Engineering Institute, China October 25, 2017 1

Content 1. Development of Renewable Energy 2. Development of Energy Storage 3. Pilot Projects

Content 1. Development of Renewable Energy 2. Development of Energy Storage 3. Pilot Projects

1. Development of Renewable Energy Status of Global Renewable Energy Development Primary Energy Supply （2016） Renewable Energy Supply （2016） Renewable Energy Supply weighted 8.4% in total Primary Energy Supply. Total Amount: 12924 Mtoe Total Amount: 1092 Mtoe Source: International Energy Agency

1. Development of Renewable Energy Global Renewable Energy Production （2016） China Gross of renewable energy production: 340 Mtoe 25% used for electricity generation The consumption of renewable energy mainly includes: Residential/ Commerce&Public（45%）,Electricity plants（31.8%）,Industry（10.2%）. China, India and the US are the largest renewable energy producers around the world.

1. Development of Renewable Energy Renewable Energy Develops Fast in China Percentage of Installed Generation Capacity by Source in 2016 Percentage of Electricity Generation by Source in 2016 Tara walt Now China has the largest installed capacity of hydropower, wind power and solar power in the world. Source: China Electricity Council

1. Development of Renewable Energy Renewable Energy Develops Fast in China Wind Power Generation Solar Power Generation Focus more on the wind and solar power China’s wind power and solar power industry maintains fast growing momentum in recent years. Source: National Energy Administration of China, China Energy Research Society

1. Development of Renewable Energy Forecast of Power Capacity Addition till 2040 Wind almost 600 GW Solar almost 500 GW Renewable energy will remain the fastest developing power sources in China in the future. Source: International Energy Agency

1. Development of Renewable Energy To expand the development of renewable energy has to overcome the problems and challenges brought by its randomness and intermittently to the power grid. Energy storage technology is used in renewable energy generation, which can convert the random power generation into relatively stable output. It can improve the controllability of power generation output, suppress power fluctuation, and improve the quality of power, so that the wind power generation and PV generation can be widely used in power supply system.

Content 1. Development of Renewable Energy 2. Development of Energy Storage 3. Pilot Projects

2. Development of Energy Storage Status of Global Energy Storage Development By 2016, the global cumulative operational energy storage capacity reaches 167GW, of which pumped hydro accounted for 96%. The heat, other mechanical, electrochemical and hydrogen provide the rest, with the capacity of 3GW, 1.6GW, 1.4GW, 0.01GW respectively. Source: DOE Global Energy Storage Database

2. Development of Energy Storage Status of Energy Storage Development in China Generally speaking, China's energy storage development focus on the development of pumped storage and electrochemical storage, such as Flow Batteries and Li-ion Batteries. By the end of 2016, the installed capacity of energy storage units in China has reached 27GW, of which 99% is pumped hydro energy storage and 1% is electrochemical energy storage. Unit: GW Source: China Electricity Council and CNESA

2. Development of Energy Storage Development of pumped storage in China In 2016, 3 new pumped storage power stations were put into operation, with combined capacity of 3.74GW. The newly operational capacity hiked 306% from that in 2015. New Pumped Storage Power Stations in 2016 Approved pumped storage power station Installed capacity (MW) Liaoning Qingyuan 1800 Jiangsu Jurong 1350 Xinjiang Fukang 1200 Fujian Xiamen 1400 Fujian Yongtai Fujian Zhouning Shaanxi Zhenan 黑 龙 江 吉 林 新 疆 内蒙古 辽 宁 甘 肃 河北 Operational pumped storage power station Installed capacity (MW) Zhejiang Xianju 1580 Jiangxi Hongping 1200 Guangdong Qingyuan 960 山 西 青 海 宁夏 山 东 西北地区——新能源消纳 华东地区——分布式发电及微网项目 核准建设抽水蓄能电站 9.55GW 陕 西 河南 江苏 西 藏 安徽 四 川 湖 北 浙 江 江西 湖南 贵 州 福 建 云 南 台湾 广 西 广 东 海南

2. Development of Energy Storage Development of electrochemical energy storage in China In 2016, the additional capacity of electrochemical energy storage is 101MW. Since 2012, the installed capacity of electrochemical energy storage keeps steady growth. The AAGR since 2012 is 54%. Installed Capacity of Electrochemical Energy Storage in China 243 Additionally, 846MW is in programming and construction Source: CNESA

2. Development of Energy Storage Guidance of Government Innovative action plan for energy technology innovation(2016-2030) It was jointly issued  by National Development and Reform Commission(NDRC) and National Energy Administration(NEA) of China in 2016. Key tasks: Solar-thermal efficient utilization storage technology; Large-capacity heat (cooling) storage technology in distributed energy system; Physical energy storage technology for peak-shaving of power grids and for regional energy supply; Energy storage technology for renewable energy using, distributed system and micro-grid, electric vehicles. 能源技术革命创新行动计划（ 2016-2030 年） 研究太阳能光热高效利用高温储热技术、分布式能源系统大容量储热（冷）技术，研究面向电网调峰提效、区域供能应用的物理储能技术，研究面向可再生能源并网、分布式及微电网、电动汽车应用的储能技术，掌握储能技术各环节的关键核心技术，完成示范验证，整体技术达到国际领先水平，引领国际储能技术与产业发展。 积极探索研究高储能密度低保温成本储能技术、新概念储能技术（液体电池、镁基电池等）、基于超导磁和电化学的多功能全新混合储能技术，争取实现重大突破。

2. Development of Energy Storage Guidance of Government The 13th five-year plan for electric power development It was jointly issued  NDRC and NEA of China in 2016. Key tasks: Pilot application of various energy storage technologies, such as large-capacity electromechanical energy storage, molten salt energy storage etc. Pilot application of Integrated Multi-energy System. Construction of pumped storage power station. The installed capacity will reach 40GW till 2020. Research on the price policies to promote the use of renewable energy and the development of energy storage. 《电力发展“十三五”规划（2016~2020 ）》 开展大容量机电储能、熔盐蓄热储能、高效化学电池储能等多种储能示范应用 开展风光储输多元化技术综合应用示范。结合风电、光伏等新能源开发，融合储能、微网应用，推动可再生能源电力与储能、智能输电、多元化应用新技术示范，推动多能互补、协同优化的新能源电力综合开发。“十三五”期间，继续推动张家口等可再生能源示范区相关建设。 加快抽水蓄能电站建设。统筹规划、合理布局，在有条件的地区，抓紧建设一批抽水蓄能电站。加强抽水蓄能电站调度运行管理，切实发挥抽水蓄能电站提供备用、增强系统灵活性的作用。“十三五”期间，抽蓄电站开工6000 万千瓦左右，新增投产1700 万千瓦左右，2020 年装机达到4000 万千瓦左右。 研究促进可再生能源就近消纳和储能发展的价格政策。

2. Development of Energy Storage Guidance of Government Guidance on promoting energy storage technology and industrial development It was issued by NDRC of China in 2017. Key tasks: Develop pilot research of energy storage technologies and equipment. 10MW/100MWh CAES, 10MW/1000MJ Flywheel Energy Storage, 100MW Li-Ion Battery Promote pilot application of energy storage, expanding the utilization of renewable energy. Encourage to allocate energy storage for renewable energy Study on the compensation regulation of energy storage allocated for renewable energy Promote pilot application of energy storage diversification supporting Energy Internet. 关于促进储能技术与产业发展的指导意见

Content 1. Development of Renewable Energy 2. Development of Energy Storage 3. Pilot Projects

3. Pilot Projects China is working on 6 pilot projects of supply-side multiple energy integrated system. 新 疆 西 藏 青 海 甘 肃 内蒙古 四 川 云 南 广 西 广 东 湖南 江西 河 南 贵 州 陕 西 山 西 河北 山 东 安徽 福建 浙江 江苏 黑 龙 江 吉 林 辽 宁 海南 台湾 湖 北 宁 夏 Zhangjiakou, Heibei Province 6 pilot projects Zhangjiakou, Hebei Hancheng, Shannxi Haixi, Qinghai Baotou, Inner Mongolia Hainan, Qinghai Lianshan, Sichuan 首批多能互补集成优化示范工程共安排23个项目，其中，风光水火储多能互补系统6个 Supply side Demand side 19

3. Pilot Projects Zhangbei National Renewable Energy Pilot Zone Zhangjiakou, Heibei Province, China 规划用地7500余亩，是大规模的集风电、光伏发电、储能及输电工程四位一体的可再生能源项目 A large-scale renewable energy demonstration zone integrating wind power generation, photovoltaic power generation, energy storage and transmission projects. Gross investment: $1.5 billion

3. Pilot Projects Zhangbei National Renewable Energy Pilot Zone Planning Capacity Wind: 500MW PV: 100MW Storage: 70MW The first phase Wind: 100MW PV: 40MW Storage: 20MW The second phase Wind: 400MW PV: 60MW Operational

3. Pilot Projects Zhangbei National Renewable Energy Pilot Zone The first phase Wind: 100MW PV: 40MW Storage: 20MW

3. Pilot Projects Zhangbei National Renewable Energy Pilot Zone The first wind-PV-storage-transmission pilot renewable energy project over the world. The innovation of wind-PV-storage joint control and dispatch system. The grid-friendly wind farm with the most types of wind turbines. The largest-capacity power-adjustable PV station. The largest-scale multi-type chemical energy storage station.

3. Pilot Projects Zhangbei National Renewable Energy Pilot Zone Joint Control Wind Farm Storage Station PV Station Smooth output Track scheme  Shift peak-load Modulate frequency Energy storage scale: 63MWh. Deviation from planning is less than 3%. Wind power volatility rate is less than 5%/10min. Deviation from the frequency adjustment target is less than 0.5%.

3. Pilot Projects Dalian Vanadium Flow Battery Project Major Project 2016 of Made in China 2025 strategy (issued by Ministry of Industry and Information Technology of China) The world biggest battery project (200MW/800MWh)

3. Pilot Projects Dalian Vanadium Flow Battery Project Waste heat recovery system Modular design Electrical system optimization

3. Pilot Projects Dalian Vanadium Flow Battery Project Provide peak-shaving. Enhance grid stabilization on the Dalian peninsula in northern China. Facilitate additional intermittent renewable energy deployment in the region.

谢 谢 Thank you！