Southern Power Grid Energy Storage: Pumped Storage and New Energy Storage Price Policy Adjustment

On February 1st, State Grid announced that recently, the National Development and Reform Commission and the National Energy Administration issued a notice on improving the capacity electricity price mechanism on the generation side, further clarifying the pricing policy for pumped storage energy and independent new energy storage on the grid side. According to the notice, the seven pumped storage power stations belonging to the company, including Guangxu II, Huixu, Qingxu, Shenxu, Haixu, Meixu Phase I, and Yangxu Phase I, belong to the first category of power stations; the nine pumped storage power stations belonging to the company, including Meixu Phase II, Zhanjiang Langjiang, Huizhou Zhongdong, Maoming Dianbai, Nanning, Guanyang, Qinzhou, Guigang, and Yulin belong to the second category of power stations; For power stations constructed by the company after the issuance of the notice, whether they will implement the pricing policy of the second category of power stations or the third category of power stations will be determined by relevant departments in the course of project implementation. For newly built and commissioned new energy storage stations before the issuance of the notice, whether they will maintain the original commercial model or implement the new electricity price policy will be decided by relevant departments. After the issuance of the notice, it is expected that new grid-side independent energy storage facilities constructed by the company will implement the capacity electricity price policy in the province or region where the project is located, obtaining capacity electricity fee income and participating in power market transactions to generate income. Overall, after the implementation of the notice, the operation of pumped storage power stations will become more market-oriented, and the uncertainties regarding station revenue and profit will increase. Additionally, the notice proposes a national-level capacity electricity price policy for grid-side independent new energy storage, which is expected to promote the development of grid-side independent new energy storage.