Regarding energy storage:

The mandatory allocation of energy storage for new energy has been cancelled. As an important regulatory resource, energy storage will shift from the previous policy of "requiring you to install" to "requiring you to install" according to market demand, and from the past "price competition" to creating value for new energy power generation. In addition, the market will also tend towards rationality, and the industry will place more emphasis on research and development investment and technological innovation, thereby accelerating the survival of the fittest.

Regarding virtual power plants:

The new policies of market-oriented reform of new energy have also brought opportunities for new formats such as virtual power plants. Experts predict that the regulation capacity of virtual power plants in China will reach over 20 million kilowatts in the next three years, approaching the installed capacity of the Three Gorges Dam.

Regarding the entry of new energy into the market:

With the deep activation of market mechanisms, the new energy industry will also bid farewell to subsidy dependence and achieve high-quality development under the new competitive landscape. After the entry of new energy into the market, it will lead to increased fluctuations in spot market electricity prices, such as the phenomenon of short-term negative electricity prices in Shandong, Zhejiang and other places. At the same time, high spot prices also occur from time to time, and spot electricity prices in places such as western Mongolia and Shanxi have exceeded 1 billion yuan per kilowatt. New energy incremental projects will be quoted based on their marginal cost, which will directly test the project's site selection and technical capabilities, thereby achieving high-quality and cost-effective investment.

Regarding the rush to install new energy stock projects, component prices have stabilized and risen:

The implementation of the new policy cuts the line between old and new. In Jiangsu, Guangdong and other places, a large number of new energy enterprises are accelerating their construction in order to pursue the guarantee of existing policies. Affected by the policy milestone on June 1st, there has been a concentrated outbreak of demand for distributed photovoltaic projects, especially for industrial and commercial distributed photovoltaic orders. Since March this year, the production lines of a large number of photovoltaic module manufacturers have been operating continuously for almost 24 hours, and the order schedule has been scheduled until the end of the second quarter of this year. The overall module prices have also shown a significant stabilization and increase. As of now, the prices of mainstream photovoltaic modules in China have risen from 0.6 yuan/W at the end of 2024 to over 0.7 yuan/W, and the spot prices of some distributed photovoltaic modules have risen to 0.8 yuan/W. Industry insiders believe that this round of price increases is more of a temporary phenomenon driven by policies, and it is expected that component prices may face downward pressure in the third quarter.

Regarding artificial intelligence traders:

Nearly 80% of the electricity generation on the power generation side and around 80% of the electricity consumption on the user side enter the market, making electricity trading more frequent. AI dispatchers and traders are also starting to work in the electricity market, participating in trading in new energy spot markets such as Shandong, Zhejiang, and Inner Mongolia. By analyzing meteorological, user load, and energy storage equipment operation data, a trading strategy is formed to achieve buying low and selling high.

The detailed report on energy storage and virtual power plants is as follows:

Energy storage configured on demand

From policy requiring you to act to market requiring me to act

The new electricity reform policy has abolished the requirement for mandatory allocation and storage of new energy. After new energy enters the market, relevant enterprises can choose to allocate and store according to their own needs, which is conducive to fully discovering the real value of energy storage. The profit margin of energy storage projects is also expected to further increase.

Reporter: The first independent shared energy storage project in Hainan will be put into commercial operation in April. This project will be leased to multiple photovoltaic power stations for joint use, with a lease term of up to 20 years. Clarify that energy storage enterprises and new energy enterprises jointly share the revenue sharing of peak shaving and frequency regulation auxiliary services, providing a helping hand for the entry of new energy into the market.

Zhang Min, Project Manager of Lingao Zhenjin Energy Storage Station of Nanwang Energy Storage Company: If the power station provides two charging and two discharging services at spot prices, the annual revenue it will receive may exceed 4.8 million yuan, bringing more than half of the sharing income to new energy enterprises for energy storage rent.

Reporter: The Anji heavy-duty truck photovoltaic charging and swapping station in Zhejiang has been put into operation, equipped with 36 energy storage devices, combined with photovoltaic on the project roof, providing charging and swapping services for 400 local heavy-duty trucks.

Dai Zhen, the person in charge of the construction of the "Light Storage Charging and Replacement" project for Zhejiang Anji heavy-duty trucks, said that where the price difference between energy storage charging and discharging exceeds 70 cents, we can control the investment return cycle of our energy storage equipment within 7 years.

Reporter: Industry insiders believe that after the new policy cancels mandatory storage allocation, market investment will pay more attention to the performance, quality, and service of energy storage, and the investment returns of energy storage power stations will also widen the gap, intensifying industry reshuffle.

Tian Qingjun, President of Yuanjing Energy Storage: Currently, there are too many investment entities in the energy storage industry, with over 100000 energy storage enterprises. After the marketization of electricity, enterprises need to rely on their real abilities to make a living. The market will tend to be rational, and it will lead the industry to attach importance to research and development investment and technological innovation to accelerate the survival of the fittest.

Reporter: The China Electricity Council stated that many new energy and distribution storage projects approved last year will be connected to the grid this year, and it is expected that the average energy storage duration will steadily increase throughout 2025.

Liu Yongdong, Deputy Secretary General of the China Electricity Council: As an important regulatory resource in our power system, new energy storage will shift from the previous "policy requires you to install" to "you need to install" based on market demand. This means that it will be market-oriented and configured around the actual operation of our new energy generation and the actual needs of the power grid. It can be said that this is a significant transformation, and the energy storage industry will shift from price competition to creating value for new energy generation.

Virtual power plants experience significant growth

'Power plants without chimneys' reduce costs for enterprises

The National Development and Reform Commission and other departments have introduced new policies for market-oriented reform of new energy. Starting from June 1st this year, the electricity pricing mechanism has shifted from guaranteed profits to market fluctuations, which has brought challenges to new energy enterprises and opportunities for new formats such as virtual power plants.

Due to the fluctuation of market electricity prices, there will be more arbitrage space, and the new policy will also reduce energy costs for industrial and commercial users. Let's take a look at the journalist's investigation in Jiangsu, Hubei and other places.

Reporter: I am currently on an electric tugboat at Lianyungang Port, which is undergoing charging operations. In the future electricity market, it will act as a buyer to purchase green electricity such as photovoltaics. It is like a super power bank, charging during low electricity consumption periods with a capacity of up to 6000 kWh per charge.

In Lianyungang Port, Jiangsu Province, adjustable electricity loads such as electric tugboats, electric heavy-duty trucks, and battery swapping stations will be aggregated into virtual power plants to participate in electricity market transactions. Increase electricity consumption during peak periods of low prices for new energy generation, and use port energy storage during peak periods to reduce electricity load and gain profits in the electricity trading market.

Xie Fei, Secretary of the Party Committee of Jiangsu Lianyungang Port Group's Ship and Barge Branch: With one ship per year, I can't charge it during low electricity consumption, which saves about 4 million yuan compared to fuel. We currently have one or two electric boats, and in the future we will build more electric boats.

Reporter: In Xiangyang, Hubei Province, a car parts manufacturing enterprise has connected its distributed photovoltaic, energy storage, and electricity load in the factory area to a virtual power plant platform, and obtained profits and reduced costs by participating in the electricity market. This factory without chimneys has already driven hundreds of local enterprises to upgrade their energy consumption.

Yan Han, the project leader of the Xiangyang Virtual Power Plant of State Grid Corporation of China, said: "Concentrate the electricity load of the enterprise into a tower, form regulation resources, cut peak and fill valley, and reduce the energy cost of the enterprise by 8% through the electricity market. In the future, the coverage of virtual power plants will continue to expand, including various resources such as charging piles, industrial and commercial energy storage, and building air conditioning.

Reporter: In Suzhou, Jiangsu, 8 virtual power plant operators have submitted applications for online transactions this year, compared to only two last year.

Liu Shan, project leader of State Grid Suzhou Virtual Power Plant: After policy adjustments, virtual power plants now have ways to make profits. Enterprises with energy storage, charging stations, and new energy are more likely to access virtual power plants.

Reporter: Experts predict that the regulating capacity of virtual power plants in China will reach over 20 million kilowatts in the next three years, approaching the installed capacity of the Three Gorges Dam.

Zheng Tao, a virtual power plant expert from State Grid Nanrui Group: The profit margin of the entire virtual power plant enterprise is also relatively large, and it should double annually by now. We predict that there may be a significant increase this year.