Peaking capacity represents a much larger potential market for energy storage. Peaking capacity historically has been provided by a combination of simple-cycle gas turbines, gas- and oil-fired steam plants, and reciprocating engines using gas or liquid fuels (FERC 2015).
C&I energy storage projects in China mainly profit from peak-valley arbitrage while reducing demand charges by monitoring the inverters’ power output in real time to prevent transformers of industrial parks from exceeding their capacity limits.
Since July, as the country experienced peak electricity demand, more and more provinces have varied electricity charges for different seasons, expanding the peak-to-valley spread and fostering growth in the C&I energy storage sector.
In the five cities of the Pearl River Delta of Guangdong, the peak price was RMB 1.49/kWh, and the trough price was RMB 0.289/kWh, meaning a peak-to-trough gap of RMB 1.2/kWh, making Guangdong the province of the largest peak-to-valley spread as of mid-2023.
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