Industrial and commercial energy storage profit one of the peak and valley arbitrage

24-07-2023


Commercial and industrial energy storage


Commercial and Industrial Energy Storage


In the process of building a new type of power system, the important role of energy storage has gradually come to the fore, which can be said to be a new type of power system in all aspects of the reservoir, ballast. According to the application scenarios, the user side of the energy storage shows great potential, which is the most prominent industrial and commercial energy storage, the industry generally believe that 2023 is the first year of China's industrial and commercial energy storage outbreak, the following look at the industrial and commercial energy storage of the 8 kinds of profit channels analysis.


Peak and valley arbitrage


                                                                01: peak and valley arbitrage

The most basic earnings: users can charge the energy storage battery at a cheaper valley tariff when the load is in the low valley, and at the peak of the load, the energy storage battery will supply power to the load to realize the transfer of the peak load, and obtain earnings from the peak and valley tariffs.


Energy Storage


Let's first understand what is the grid peak and valley spread arbitrage. Grid peak-valley spread arbitrage refers to the commercial behavior of purchasing electricity at lower valley tariffs in the electricity market and then selling electricity at higher peak tariffs to realize profits. This arbitrage behavior not only balances the supply and demand relationship of the power grid, but also improves the economic efficiency of energy storage devices.

In the context of today's growing energy demand, the effective use of electrical energy and the optimization of grid operations have become pressing issues. As an emerging business model, energy storage grid peak-valley spread arbitrage has injected vitality into the electricity market. In this paper, we will discuss what grid peak-valley spread arbitrage is and why energy storage devices are allowed to conduct this business.


Commercial and Industrial Energy Storage


Talking about the beginning of grid peak and valley spread arbitrage, we need to start from the power system reform. China's power system reform began in 2015, promoting the development of the power market through the introduction of market mechanisms and competition mechanisms. This provides business opportunities for peak and valley spread arbitrage. Since then, relevant national policy documents have been issued to explicitly support energy storage power trading and peak and valley spread arbitrage.


Peak and valley arbitrage


At present, energy storage equipment is still allowed to carry out peak and valley spread arbitrage. This is mainly based on the following considerations. Peak and valley spread arbitrage helps optimize the operation of the power market, balances the supply and demand relationship of the power grid, and reduces the peak pressure of the power system. Arbitrage behavior encourages the investment and construction of energy storage equipment and promotes the application and development of new energy technologies. Again, arbitrage can provide a sustainable source of profit for the operation and maintenance of energy storage equipment, effectively reducing costs.


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