PVTIME – On December 3, Zhuangzhi Fang, Senior Vice President of Linyang Energy, attended the BloombergNEF Summit in Shanghai, where he participated in an in-depth dialogue on the theme “Optimizing Clean Energy Revenue Amid Reform Turbulence”. Mr. Fang shared insightful strategies for addressing the impact of renewable energy integration into electricity markets on the industry’s outlook.
In recent years, China’s renewable energy sector has experienced rapid growth, with market-based transactions for renewables becoming an inevitable trend. The marketization of electricity pricing, characterized by price volatility, has introduced uncertainty to renewable energy developers’ revenues. Fang explored whether private enterprises might accelerate asset transfers or reduce retained project scales, analyzing the issue from two key perspectives: differences in financial health and operational strategies of renewable energy enterprises, and the varying attributes of projects, especially between subsidized projects and those under grid parity policies.
On the topic of improving project economics through renewable energy integration with storage, Mr. Fang noted a shift in storage deployment models. Early models relied on fragmented, site-specific storage configurations, while recent industry trends advocate for centralized and shared storage to enhance efficiency and profitability. As renewable energy increasingly participates in spot markets, photovoltaic and wind power projects are expected to adopt high-capacity storage systems in co-located setups. These solar+storage and wind+storage hybrid projects will unlock greater returns in spot markets while benefiting from potential grid-charging innovations. By combining energy storage with both spot market and ancillary services participation, such projects are positioned to maximize revenue streams.
For standalone energy storage stations, Mr. Fang highlighted potential opportunities through long-term power purchase agreements (PPAs) with renewable energy projects and virtual energy storage models, which could enhance project returns in future electricity markets. These innovative strategies will play a pivotal role in securing and increasing profitability for renewable energy assets.
Linyang Energy remains at the forefront of renewable energy innovation and development. Leveraging its strengths in technological advancements, intelligent manufacturing, and professional operations and maintenance services, Linyang Energy delivers high-performance, safe, and cost-effective energy storage products and solutions to clients worldwide, contributing to the global journey toward decarbonization.
