欧宝体育

1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Unlike traditional peak shaving energy storage power stations and new energy field stations, independent frequency regulation energy storage power stations do not have basic power generation functions and do not participate in electricity and peak shaving market transactions. Their 100% power capacity can be fully used for power frequency regulation, especially the most direct and effective primary frequency regulation for grid frequency stability. The primary frequency response of an independent frequency regulation energy storage power station is actually to replace several times or even dozens of times its installed power of new energy stations for frequency regulation, solving the problem of grid frequency stability from the perspective of provincial and regional power grids, and helping to achieve the Carbon Peaking and Carbon Neutrality Goals.

The main customer groups of the project will include power grid companies, large new energy station operators, and industrial users seeking to improve power quality. As the core of the power system, the power grid company will directly benefit from the frequency stability services provided by independent frequency regulation and energy storage power stations, thereby improving the overall operational efficiency and reliability of the power grid. Large new energy plants, such as wind farms and photovoltaic power stations, have an urgent need for power frequency regulation due to their unstable and intermittent power generation. Independent frequency regulation and energy storage power stations will become their ideal partners. In addition, some industrial users with strict requirements for power quality, such as precision manufacturing and data centers, will also become important customers of the project. By introducing independent frequency regulation energy storage power stations, their power supply stability and continuity can be ensured.

The above users will also pay corresponding fees based on the quality and effectiveness of the services provided by the project. In summary, the calculation of project revenue will comprehensively consider factors such as service content, service effectiveness, and market demand to ensure the economic and sustainability of the project.

1.1.2 Market prospect

(1) Primary frequency regulation demand

Frequency is a crucial indicator of power quality, reflecting the balance between generation and consumption of active power in a power system. Variations in grid frequency significantly impact the safety and economic operation of generators and loads. From a temporal perspective, conventional generating units respond to grid frequency changes through three sequential processes: Inertia response, primary frequency regulation, and secondary (automatic generation control) frequency regulation. Among these, primary frequency regulation refers to the automatic response of grid-connected entities to adjust active power output and reduce frequency deviations when the system frequency deviates from the target value. It is the most effective technical means for maintaining grid frequency stability.

The primary frequency regulation of the power grid has the characteristics of high frequency, short duration, rapidity, and randomness. Under the current conditions of the power system, in most regions of China, the daily frequency regulation actions under the artificial frequency regulation dead zone ± 0.033Hz range from hundreds to thousands of times, with an average single action duration of several seconds to tens of seconds, and a maximum single action duration of no more than 1 minute.

With the advancement of building new power systems and new energy systems, the proportion of installed capacity and power generation from renewable energy continues to increase. This has led to a noticeable trend in grid frequency fluctuations: The frequency of fluctuations is rising, while the duration of each fluctuation is decreasing. This issue cannot be resolved through dispatch methods such as generation and load forecasting. Instead, it must be addressed by relying on the autonomous response of grid-connected entities through primary frequency regulation to achieve real-time active power balance. Energy storage technologies, especially long-life, high-power-density solutions like high-speed magnetic levitation flywheels, have become indispensable components for frequency regulation in the new power system due to their millions of cycles of lifespan and exceptional controllability.

According to statistics from the Northeast Branch of State Grid Corporation of China, from January 2022 to October 2023, there were 1573 daily violations of the power grid frequency exceeding the dead zone ± 0.033Hz, with an average duration of about 25 seconds per violation.

It can be foreseen that in China, the electricity consumption of the whole society will continue to steadily increase in the coming decades. Due to the characteristics of wind and solar resources, the utilization hours of new energy generation entities such as wind power and photovoltaics cannot be increased, and the proportion of new energy installed capacity and power generation will continue to grow rapidly in the long term. The demand for primary frequency regulation of electricity is becoming increasingly strong, and the market size will continue to grow in the future.

(2) Energy storage technical analysis

With technological progress, flywheel energy storage technology has gone through pure mechanical flywheels, low-speed (<10000rpm) mechanical or hybrid bearing flywheels, and high-speed (>20000rpm) pure magnetic levitation flywheels. The pure magnetic levitation flywheel products represented by Shenyang Micro Control have made significant progress in power density, energy density, stable operation of magnetic levitation bearings, electrical response, etc., and have been applied in emergency power supply, shock load stabilization, and power frequency regulation. At present, the product forms of energy storage flywheels mainly include high-speed power type magnetic levitation flywheels and low-speed energy type magnetic flywheels.

Low speed energy type magnetic flywheel: Low speed energy type magnetic flywheel adopts a bearing system of mechanical bearings or magnetic unloading bearings, mainly relying on the rotation of heavy-duty flywheel for energy storage, with a speed of about 5000-10000 revolutions per minute. Due to the large mass of the flywheel rotor, a submerged deployment is required, and a flywheel inverter separation structure is adopted. Low speed energy type magnetic flywheels have high energy storage but high power consumption, mechanical wear of bearings, short service life, and difficult maintenance.

High speed power type magnetic levitation flywheel: The high-speed power type magnetic levitation flywheel adopts a magnetic levitation bearing system, and the flywheel is in a completely magnetic levitation state without contact in a closed vacuum container, rotating at a speed of tens of thousands of revolutions per minute at high speed. Due to the use of magnetic levitation bearing technology, the flywheel has no physical contact during rotation, making it the most advanced flywheel energy storage technology route with advantages such as light weight, no wear, low power consumption, and long service life. It is usually deployed in a standard cabinet style.

As the only flywheel technology route with feasible engineering implementation, the high-speed power type magnetic levitation flywheel has obvious advantages in the field of electric power. Shenyang Micro Control Flywheel Technology Co., Ltd. has domestic high-speed power magnetic levitation flywheel energy storage technology; The only flywheel energy storage equipment manufacturing enterprise that can achieve mass production; The only flywheel energy storage equipment manufacturing enterprise that performs precision machining, heat treatment, and 360° non-destructive testing on the rotor body.

(3) Adaptability of power grid frequency regulation

The primary frequency regulation of an independent frequency regulation energy storage power station is based on the formula for the active power change rate of the primary frequency regulation. According to current policies and the frequency fluctuation characteristics of the Northeast power grid, the frequency regulation mileage of the primary frequency regulation accounts for 15% to 30% of the rated power of the energy storage power station. Considering multiple consecutive frequency violations, the integration of high-speed magnetic levitation flywheel energy storage technology and power type electrochemical energy storage technology, known for their high power density, rapid response, and ultra-long charge discharge cycles, to form a hybrid energy storage power station can fully leverage the respective advantages of flywheel energy storage and electrochemical energy storage, achieving complementary advantages, intensive resource utilization, and twice the result with half the effort.

In practical applications, flywheel energy storage can cover the vast majority of primary frequency regulation needs, and can be paired with a certain proportion of power type batteries. While increasing the declared capacity of the energy storage power station, it can also handle low probability long-term primary frequency regulation commands and continuous adjustment commands to ensure the qualification rate of primary frequency regulation actions.

The project is built in Songyuan City, using flywheel energy storage technology and high rate battery technology to construct a hybrid energy storage frequency regulation system. By far exceeding the frequency regulation rate, response speed, and accuracy of traditional power plants, under the guidance of the new version of the Implementation Rules for Central China Regional Power Auxiliary Service Management and Implementation Rules for Central China Regional Power Grid Connection Operation Management, the project can provide high-quality frequency regulation resources for the local area and obtain considerable frequency regulation benefits. This project aims to improve the stability of power grid operation and enhance the grid's ability to accept new energy.

In summary, the project market meets the actual development needs and has good market prospects, making the project very necessary.

1.1.3 Advantageous conditions of project construction

(1) Policy advantageous

The 14th Five Year Plan for National Economic and Social Development and the Long Range Objectives by 2035 of Jilin Province proposes to fully leverage the advantages of rich wind and solar resources and unused land in Baicheng City, Songyuan City and other areas, vigorously develop wind and photovoltaic power generation, and build 3 new energy production bases with a capacity of 10 million kilowatts for consumption, transmission and hydrogen production within Jilin Province. By the end of the 14th Five Year Plan, the installed capacity of wind and photovoltaic power generation is expected to reach 30 million kilowatts, surpassing the installed capacity of the Three Gorges Dam on the Yangtze River.

On February 7, 2024, the NDRC and the NEA issued the Notice on Establishing and Improving the Price Mechanism of the Power Auxiliary Service Market [2024] No. 196, which clearly stipulates that “the trading of power frequency regulation auxiliary services shall adopt a single pricing mechanism based on the frequency regulation mileage.” “Each unit shall independently declare the frequency regulation capacity and price in different time periods according to the rules, and determine the clearing price and winning frequency regulation capacity through market competition. The frequency regulation cost shall be calculated based on the product of clearing price, frequency regulation mileage, and performance coefficient.” “The upper limit of frequency regulation service price shall be reasonably determined. The frequency regulation performance coefficient shall be determined by the product or weighted average of three sub parameters: regulation speed, regulation accuracy, and response time. The sub parameters shall be determined by the local performance of the best coal-fired power unit host. Excluding thermal storage combined units. The corresponding design parameters are converted based on the benchmark. In principle, the maximum performance coefficient shall not exceed 2, and the upper limit of the clearing price for frequency modulation mileage shall not exceed 0.015 yuan per kilowatt.” The policy's encouragement and price preference for frequency regulation entities with superior performance indicators are already very obvious, and the compensation costs are significantly higher than the current Northeastern regional power frequency regulation policy.

(2) Resource advantageous

Songyuan City is located in the Northeast Plain, with flat terrain and abundant wind resources, which provide unique conditions for the construction of wind farms. Through scientific planning and reasonable plan, these wind energy resources can be fully utilized to provide stable power supply for the local area. At the same time, the Songyuan region has formed a relatively complete wind power industry chain, including the manufacturing and installation of wind power equipment and wind farms.

(3) Talent advantageous

Songyuan City has 14 secondary vocational and technical schools with strong teaching staff, which can ensure the demand for secondary professional and technical talents in enterprises in Songyuan city; A number of vocational schools such as Songyuan Vocational and Technical College and Technical School can train 8000 professional and technical talents annually; At the same time, the Songyuan Municipal Government signed a talent and technology strategic cooperation framework agreement with the Changchun Branch of the Chinese Academy of Sciences and Jilin University.

1.2 Contents and scale of project construction

1.2.1 Scale of project construction

The capacity of the hybrid energy storage system is 100MW/13.216MWh.

1.2.2 Contents of project construction

The project covers an area of 116000 square meters and mainly involves the construction of auxiliary facilities such as booster stations, energy storage stations, and transmission lines.

1.3 Total investment of the project and capital raising

The total investment of the project is 662 million yuan, including the construction investment of 529.6 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 418 million yuan, its profit will be 138 million yuan, its investment payback period will be 6.8 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 20.8%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The improvement of the stability and reliability of the power system: Energy storage independent frequency regulation power stations can quickly respond to changes in the frequency of the power system, reduce frequency deviation by adjusting active output, and effectively improve the stability and reliability of the power system. This fast response characteristic makes energy storage frequency regulation power stations an important component of the power system, capable of quickly intervening in the event of grid fluctuations, ensuring the continuity and stability of power supply.

The promotion of the consumption of renewable energy: Energy storage independent frequency regulation power stations can provide necessary frequency regulation services by storing and releasing energy, thereby helping to increase the proportion of renewable energy consumption when renewable energy generation is unstable. For example, during the peak summer season, Jiangsu Province effectively ensured the safe and stable operation of the province's power grid and promoted the utilization of clean energy by mobilizing new energy storage stations. Energy storage independent frequency regulation power stations not only have significant technological advantages, but also play an important role in social benefits, promoting the stable operation of the power system and optimizing the energy structure.

1.5 Cooperative way

Sole proprietorship, joint venture, and cooperation.

1.6 What to be invested by the foreign party

Funds, other methods can be discussed offline.

1.7 Construction site of the project

Songyuan City

1.8 Progress of the project

The project proposal has been prepared

2 Introduction to the Partner

2.1 Unit basic information

Name: Songyuan Municipal Bureau of Commerce

Address: No.265 Xingyuan Road, Ningjiang District

2.2 Unit overview

Songyuan City is located in the southern part of the Songnen Plain and is renowned as the "granary, meat locker, and fishing village." Situated at 45 degrees north latitude, it lies within the world's golden corn and rice belts, characterized by a temperate continental monsoon climate. The city enjoys an average annual temperature of 6°C, a frost-free period of 150 days, and an annual precipitation of approximately 432 millimeters. Songyuan City boasts 20.928 million mu of arable land, 4.76 million mu of forested land, and 2.45 million mu of water surface, making it a national large-scale commercial grain and oil production base. The annual grain output reaches 15.6 billion kilograms, and all four counties (cities) under its jurisdiction are recognized as national advanced grain production counties. Among these, the annual output of coarse grains and legumes is nearly 200 million kilograms, making it the largest distribution center for coarse grains and legumes in the country. The "Shande organic rice" was designated as the official rice for the G20 Summit in Hangzhou and the BRICS Summit in Xiamen. Currently, the city is focused on building a green industrial and agricultural city, accelerating the development of 137 green agricultural demonstration bases for rice, peanuts, and potatoes, and striving to establish a development pattern where the Songyuan irrigation district, Qianguo irrigation district, Sanjiangkou irrigation district, and Lalin irrigation district advance in tandem. The livestock and fishing industries are thriving, with the city's pig population reaching 5.45 million, beef cattle at 0.72 million, sheep at 5.31 million, and poultry at 48.07 million. Major projects such as COFCO's healthy pig industrialization, the Kerqin ten-thousand-head green beef cattle farming, and the Qianyang sheep slaughtering and deep processing have been launched, propelling Songyuan City into the ranks of strong livestock cities. The annual output of aquatic products is 50,000 tons, ranking first in Jilin province, and it is abundant in 63 varieties including carp, silver carp, and grass carp. Among these, the Chaganhu Lake bighead carp is recognized as a national AA-grade green food, and the single-net ice fishing volume at Chaganhu Lake has set a Guinness World Record. Chaganhu Lake Village was awarded the title of "Most Beautiful Fishing Village" among the "Top Ten Most Beautiful Villages in China" by the Ministry of Agriculture and other ministries.

2.3 Contact method

Contact person of the city (prefecture) where the project is located:

Contact unit: Songyuan Municipal Bureau of Commerce Investment Promotion Service Center

Contact person: Yu Lili

Tel: +86-18004388787