Electricity Market Participation of Energy Storage in China and Abroad: Mechanism Design and Development Suggestions

The construction of the new power system continues to advance, with rapid growth in the installed capacity of renewable energy. Energy storage can effectively address a series of issues caused by the volatility and intermittency of renewable energy in the power system. However, the current market mechanisms and profit models for energy storage are still not well established, limiting its development. This paper discusses the challenges faced in the current development of energy storage, reviews the mechanisms for energy storage participation in the market in the US, the UK, Europe, and Australia, and summarizes the lessons learned from various countries. Based on this, combined with the current practices of energy storage participation in the Chinese market, this paper puts forward corresponding suggestions for the future construction and development of market mechanisms of China's energy storage.