Peak and valley electricity prices and energy storage

How many provinces have a peak to Valley electricity price difference?

The State Grids and China Southern Power Grids of 29 provinces, autonomous regions and municipalities announced the electricity tariffs for industrial and commercial users in December 2021. According to the statistics, 14 provinces and cities have a peak to valley electricity price difference that exceeds 0.7 yuan/kWh.

What is the value of energy storage?

The value of energy storage is that the prosumer will store part of the surplus generation and use it for their own use when the electricity price is high.

How to improve peak-valley price mechanism?

1. Improve the peak-valley price mechanism. l Scientifically divide peak and valley periods. All localities should consider the local power supply-demand status, system power load characteristics, the proportion of new energy installed capacity, system adjustment capabilities, and other factors.

What if Peak-Valley ratio exceeds 40%?

When the peak-valley ratio is expected to exceed 40% in the previous year or the current year, in principle, the electricity price difference should not be less than 4:1; and it should not be less than 3:1 in other places. 2. Establish a peak electricity price mechanism.

Does peak-valley spread affect peak-shaving of the power grid?

Although wider peak-valley spread promotes cost-savings for LEM participants, the effects on peak-shaving of the power grid is marginal. This is because the peak-valley mechanism is still insufficient to identify all potential spikes in power supply, so the storage and reserve capacity resources cannot reach the efficient allocation.

What is energy storage for prosumers?

Due to the differences between residential and industrial & commercial users (both in terms of prices and load characteristics like voltage classes), energy storage for prosumers is only considered to be traded with similar users and the price is set according to the peak of the grid sales price.