As of May 22, State Grid Shandong Electric Power Company's grid-connected new energy storage capacity had reached 2.01 million kilowatts in China, representing the largest scale in China and showing a remarkable year-on-year increase of 160%. This figure includes 2 million kilowatts of chemical energy storage and 10,000 kilowatts of compressed air energy storage.
Shandong is well-developed in new energy. Since December 2021, Shandong has rolled out several policies related to the participation of new energy storage demonstration projects in the power spot market and capacity compensation. These policies aim to support demonstration projects to participate in power spot market transactions as independent energy storage to receive electric energy benefits. These demonstration projects will receive capacity compensation at twice the standard rate for participating in the power spot market, thereby gaining corresponding income. These policies also support the participation of demonstration projects in auxiliary services such as grid frequency modulation, ramping, and black-start to obtain corresponding income.
Energy storage plays a crucial role in energy conversion and is a vital component of modern energy systems. By the end of 2024, it is projected that new energy storage in the province will have a capacity exceeding 4 million kW. This capacity is expected to rise to approximately 5 million kW by 2025.