The Shanghai Municipal Government has officially responded to the proposal regarding the large-scale pilot of electrochemical energy storage in the Shanghai area, as presented in the 68th proposal during the third session of the 14th Shanghai Municipal People’s Political Consultative Conference.
The response highlights that new energy storage technologies are critical for building a modern energy system and ensuring energy security. Electrochemical storage, in particular, is favored for its flexibility, rapid response, and economic advantages compared to physical and hydrogen storage options. It has become the primary method for developing new storage solutions, aligning with the strategic needs of future power system construction.
The municipal government is committed to advancing new energy storage, having released the “Shanghai New Energy Storage Demonstration and Innovation Development Plan (2025-2030)” by the end of 2024. This plan emphasizes support for various electrochemical storage technologies, including solid-state batteries, flow batteries, and sodium-ion batteries. The proposal for large-scale electrochemical storage pilots in Shanghai is in line with these policy directions.
Key Points of the Response
1. Strengthening Planning and Guidance
Shanghai currently has an installed energy storage capacity of approximately 30,000 kW/70,000 kWh. The focus has been on initial research and subsequent services, but challenges such as limited production value and few leading enterprises persist. The plan advocates for a unified blueprint for development, emphasizing demonstration applications, technological innovation, and high-end industry leadership.
In the short term, the government is advancing the construction of independent energy storage stations, with a total of eight projects planned for 2025, amounting to a capacity of 414,500 kW/1,478,000 kWh. In the medium term, research on new storage layouts will be conducted in conjunction with the city’s energy development plan.
2. Securing Land Resources
The proposal recognizes that land resources are a critical bottleneck for promoting energy storage on a large scale in Shanghai, given the higher costs and stringent safety and environmental requirements in a densely populated city. To address this, the plan outlines measures to explore land security mechanisms suitable for megacity development.
Independent storage stations will be prioritized for land use as public facilities, especially at sites of retired energy facilities. Additionally, storage projects associated with thermal power units and user-side storage will be encouraged to utilize existing project lands without requiring new land acquisition.
3. Enhancing Market Mechanisms and Policy Support
The current lack of a clear pricing mechanism and unstable incentives are major factors hindering the large-scale development of energy storage. The proposal’s suggestions for moderate subsidies and market mechanisms are considered essential for resolving these issues. The plan will ensure that market mechanisms align with national policy directions and the ongoing reforms in the electricity market.
Key support measures include recognizing independent storage as a distinct participant in the electricity market, optimizing revenue models, exploring capacity compensation mechanisms, and reinforcing policy support for advanced technology projects.
4. Promoting Safety and Regulatory Management
Safety management is vital for the secure and high-quality development of energy storage. The proposal calls for the establishment of mandatory safety standards for electrochemical energy storage stations, developed at the national level. Local governments will facilitate safety regulation through clear oversight requirements.
In 2023, the city issued guidelines to strengthen safety management for electrochemical energy storage stations. The plan further enhances the chain of responsibility and control, ensuring that safety measures are effectively implemented across all relevant departments.
In conclusion, the Shanghai Municipal Government expresses its gratitude for the attention and support from the political advisory body regarding the development of the energy storage industry. The government is committed to executing the outlined strategies to foster a high-quality energy storage sector in Shanghai.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/shanghai-government-responds-to-proposal-for-large-scale-pilot-electrochemical-energy-storage-initiative/
