Battery Energy Storage Power Station Subsidy Policy

How long does a subsidy for energy storage stations last?

For new energy storage stations with an installed capacity of 1 MW and above, a subsidy of no more than 0.3 yuan/kWh will be given to investors based on the amount of discharge electricity from the next month after grid connection and operation, and the subsidy will not last for more than 2 years.

Does subsidy policy improve battery endurance level?

We can infer that the effective combination of subsidy policy and dual credit policy effectively improves the endurance level of batteries. To a certain extent, for the decision of the battery endurance level of the battery supplier, the effect of the subsidy policy is better than the dual credit policy.

Why do we need battery R&D subsidies?

Specifically, battery R&D subsidies reduce the cost and enhance the performance of batteries, alleviating consumers’ anxiety related to battery range. The technological upgrade of batteries also reduces consumer mistrust and resistance towards EVs, thereby enhancing the attractiveness of EVs to consumers and expanding the market.

What is the energy storage policy?

The policy proposes to promote the large-scale application of energy storage, and support the integrated development of new energy sources such as photovoltaics and energy storage facilities.

Should energy storage operators compete for subsidy contracts?

In several countries, revised capacity markets now allow energy storage operators to compete for subsidy contracts on a more equal footing with power generators. Support from the European Battery Alliance and €1 billion in loans from the European Investment Bank in 2020 alone should help shore up investor confidence.

How does a subsidy policy affect the EV industry?

The subsidy policy can reduce corporate input costs and increase their profit levels. From a cost–benefit perspective, for the battery supplier, the primary costs may lie in R&D and production of batteries. For the EV manufacturer, costs include not only the R&D and production of EVs but also the construction of charging and swapping stations.