Technical FAQs 4

What is user-side energy storage?

1. Introduction User-side energy storage mainly refers to the application of electrochemical energy storage systems by industrial, commercial, residential, or independent powerplant customers (which in convenience we call "firms").

What if the Chinese government announces a 30% subsidy?

For example, if the Chinese government unexpectedly announces a 30% subsidy and promises no subsidy in the near future, it can lower the spread threshold by 0.3950 RMB/kWh (or 39.8%), thus stimulating more immediate investments.

Will China keep implementing policy incentives for energy storage?

To effectively guarantee its grid stability of renewable energy sources, the Chinese government is expected to keep implementing its policy incentives for energy storage in the near future. This particular dataset provides us with the technical specifications of an energy storage system and allows us to calculate the model parameters.

How much does battery energy storage cost in China?

The discount rate r is set at 0.08, as referenced in the China Energy Storage Network. The current corporate income tax rate in China τ is around 25%. The Bloomberg New Energy Finance suggests that the investment cost of battery energy storage in 2022 is $261 per kWh. Therefore, we calculate the initial investment cost (I) to be 3.36 million RMB.

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