Electricity Market Trading And Energy Storage Pricing Mechanism

Establishing a reasonable energy storage connector market pricing framework is one of the core issues in current energy industry policy discussions. Relevant documents from the National Development and Reform Commission and energy authorities propose accelerating the improvement of the battery storage connector capacity-related electricity pricing system and orderly forming a charging and discharging pricing framework, which will help create price guidance and support mechanisms for different market participants.

The current market pricing mechanism for storage connector resources is evolving towards a multi-dimensional market structure that includes capacity compensation, long-term and short-term transactions, and spot delivery, while simultaneously promoting the development of trading rules for energy storage participation in the spot market, power auxiliary services, and capacity market. Existing policy documents have clarified the institutional arrangements for energy storage resources at the capacity compensation level, which will help stimulate market activity.