NEA continues with austerity plan – SPE

On June 4, the National Energy Administration (NEA) of China has issued new rules to determine the target for renewable energy use in each of the country’s provinces. This policy adjustment is intended to enable China’s provincial power grid operators to increase the curtailment threshold for wind and photovoltaic energy from 5% to 10%. The NEA said that in areas with favorable resource conditions, the requirements for the renewable energy utilization rate target may be appropriately relaxed, with a minimum target of not less than 90%. The previous target threshold was 95%. A dynamic assessment will be conducted annually based on consumption patterns, the NEA emphasized, noting that grid acceptance capacity limitations should be taken into account. These new provisions should spur the development of energy storage projects across the country, the NEA added. The NEA introduced a 5% discount ceiling in 2018. This meant that the utilization rate of solar and wind energy projects in specific Chinese provinces could not fall below 95%. At the time, the aim was to ensure efficient use of renewable energy installations and protect the return on investment of energy companies. However, enforcement of this policy has placed strict limits on the size of renewable energy projects, especially in regions with high abandonment rates, where the approval and development of new projects is severely limited. Despite advances in solar technologies that have led to significant reductions in installation costs and improved returns on investments for energy projects, current austerity rules restrict state-owned energy companies from setting installation targets. As a result, many projects struggle to obtain construction approval. Furthermore, State Grid’s ambitious ultra-high voltage transmission network, which requires significant investment and is making slow progress, has failed to effectively tackle the problem.

Imagine has made headlines with the signing of a crucial contract to supply energy storage in Britain. The agreement includes the supply of battery energy storage systems for the Cellarhead project in Great Britain, which has a significant capacity of 300 MW/624 MWh. Construction of the Cellarhead project is expected to begin this year with grid connection expected in 2026. Once completed, it will be among the largest energy storage plants in Britain. Envision, in partnership with Ameresco, will provide EPC+O&M services to Atlantic Green, the project’s investor. Ameresco will oversee the engineering, procurement, construction and long-term operation and maintenance of the Cellarhead project, while Vision Energy Storage will provide complete AC/DC energy storage equipment, SCADA and EMS systems for the station.