Core Viewpoint - The article discusses the rapid development of distributed energy storage in China, highlighting its importance in addressing the challenges of renewable energy consumption and the need for innovative business models to enhance its economic viability [2][6][10]. Summary by Sections Overview of Distributed Energy Storage - Distributed energy storage refers to small-scale storage systems located on the user side (homes, factories, shopping malls) or near distributed renewable energy sources, which are becoming crucial for local renewable energy consumption [2][6]. - From 2019 to the third quarter of 2025, China's cumulative installed capacity of distributed energy storage increased over fivefold, from 570 MW to 3,638 MW, with six major application scenarios identified [6][7]. Business Models and Challenges - The main business models for distributed energy storage include peak-valley arbitrage, virtual power plants, and demand-side response, with the peak-valley arbitrage model being the most stable [7][17]. - Current challenges include insufficient policy continuity, single revenue sources, lack of safety standards, and inadequate operational systems [7][8]. Recommendations for Development - To enhance the utilization and economic viability of distributed energy storage, recommendations include widening the peak-valley price difference, improving demand response mechanisms, and strengthening safety standards and fiscal support from 2025 to 2027 [8][10]. - From 2028 to 2030, the focus should shift to deepening electricity market reforms and exploring the potential of distributed energy storage in green electricity, green certificates, and carbon markets [8][10]. Future Trends - Experts predict that distributed energy storage will evolve towards market-oriented investment, diverse technology routes, microgrid integration, convenience, and AI applications [11][12]. - The future development will also focus on enhancing safety standards and operational norms to stimulate investment and ensure reliable power supply [12][15]. Market Participation and Policy Support - The role of distributed energy storage is shifting from a supportive role in the power system to a flexible adjustment resource, with various local policies being introduced to support its market participation [20][21]. - The aggregation of distributed energy storage into virtual power plants is seen as a necessary step to enhance market participation and improve bargaining power [14][24]. Application Scenarios - Key application scenarios for distributed energy storage include data centers and communication base stations, where it can provide backup power, reduce electricity costs, and ensure supply reliability [17][21]. - The integration of distributed energy storage with renewable energy sources is essential for achieving carbon reduction goals and enhancing energy efficiency [26][27].

Core Viewpoint - The recent adjustments to time-of-use electricity pricing across various provinces in China aim to address the challenges of electricity supply and demand balance, driven by high electricity loads due to extreme weather conditions [1] Group 1: Time-of-Use Pricing Mechanism - Time-of-use pricing involves implementing different electricity rates during various times of the day, including peak, flat, and valley periods, to encourage users to optimize their electricity usage [1] - The policy has evolved since the 1980s, initially starting with peak and valley pricing, and has since incorporated peak, seasonal, and wet/dry pricing mechanisms [1] - Recent adjustments to the pricing mechanism are designed to facilitate the transition to a new type of power system, moving from a traditional "supply follows demand" model to an "interactive supply-demand" model [1] Group 2: Impact on Power Generation and Consumption - The new pricing signals aim to align user electricity consumption with the characteristics of renewable energy output, particularly addressing the mismatch between peak solar generation times and user demand [2] - Adjustments in pricing, such as designating midday hours as low or even deep valley pricing, help mitigate the issue of renewable energy curtailment [2] - Users are encouraged to shift their consumption patterns to reduce costs and enhance grid stability, as seen in the case of Hainan, where adjustments were made to address peak load challenges [2] Group 3: Implications for Renewable Energy Enterprises - The time-of-use pricing mechanism is expected to promote renewable energy consumption in the long term, expanding the development space for renewables [3] - However, in the short term, renewable energy prices may face pressure, potentially extending the payback period for investments in projects like distributed solar [3] - Recommendations for renewable energy companies include investing in energy storage, enhancing market trading capabilities, and exploring aggregated trading models for distributed projects [3] Group 4: Benefits for Electricity Users and Grid Companies - Electricity users can effectively reduce costs by optimizing their consumption strategies, increasing usage during low and deep valley periods [3] - Users are advised to manage energy consumption proactively, including optimizing production schedules and enhancing energy efficiency through digital technologies [3] - For grid companies, the time-of-use pricing mechanism alleviates peak load pressures and provides a flexible adjustment solution for maintaining supply-demand balance [4] - Advanced technologies like big data and AI can be utilized to analyze customer behavior and offer personalized energy solutions [4]

Group 1: Time-of-Use Pricing Adjustments - The introduction of "deep valley" pricing in Jiangxi, a 70% reduction from flat rates, and a 65% reduction in Jiangsu's new afternoon valley pricing indicates a shift towards more refined time-of-use pricing policies [1] - The adjustments in time-of-use pricing are essential for transitioning the power system from "source following load" to "source-load interaction," aiming to enhance renewable energy consumption, ensure grid stability, and optimize user costs [1][2] - Shandong's innovative "five-segment" pricing policy, which includes a deep valley price during peak solar output hours, aims to encourage users to adjust their electricity consumption patterns [3] Group 2: Renewable Energy Consumption - As of March 2023, China's wind and solar power generation capacity reached 1.482 billion kilowatts, surpassing thermal power capacity, indicating a significant shift in energy generation [2] - The utilization rates for wind and solar energy were reported at 93.8% and 93.9% respectively for January-February 2025, showing a decline compared to the previous year, highlighting the challenges in matching supply and demand [2] - The implementation of time-of-use pricing is seen as a critical solution to address the increasing mismatch in electricity supply and demand due to the rapid growth of renewable energy installations [2] Group 3: Economic and Operational Impacts - The establishment of deep valley pricing during holidays in Hubei aims to encourage businesses to increase electricity consumption, thereby supporting economic activity and reducing costs [4] - The adjustments in pricing mechanisms redefine the value of electricity over time, facilitating a shift from passive acceptance of renewable energy to proactive management [4] - The "five-segment" pricing in Shandong is expected to significantly increase renewable energy consumption by 2.3 billion kilowatt-hours in 2024, demonstrating its effectiveness in load management [3] Group 4: Grid Stability and Electric Vehicle Integration - The growing peak-to-valley load difference in the grid, exacerbated by the rise of electric vehicles and air conditioning loads, necessitates a shift from rigid peak management to flexible regulation [5] - Hainan's adjustment of time-of-use pricing for electric vehicle charging aims to enhance grid stability and accommodate the increasing demand from electric vehicles [6] - Shandong's pricing mechanism for electric vehicle charging encourages users to charge during low-cost periods, potentially reducing annual charging costs by approximately 30% [7] Group 5: Future Outlook - The dynamic balance between renewable energy consumption, grid safety, and user economics is expected to evolve with the integration of time-of-use pricing, energy storage technologies, and virtual power plants [8] - The ongoing development of a new power system and the continuous upgrade of energy consumption structures will likely enhance the flexibility of time-of-use pricing mechanisms [8]