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2023 Semi-Annual Summary of New Energy Storage Subsidy Policies

Aug 1, 2023

In 2023, the energy storage track entered a period of rapid development. According to data released by the National Energy Board, January - June 2023, China's newly commissioned new energy storage installed capacity of about 8.63 million kilowatts / 17.72 million kilowatt-hours, equivalent to the sum of the cumulative installed capacity of previous years.

From the point of view of the scale of investment, according to the current market price calculation, new energy storage put into operation to pull direct investment of more than 30 billion yuan.

Released from around the policy point of view, the new energy storage subsidy policy reached 26, of which Guangdong Province and Zhejiang Province issued more subsidy policy. Subsidised applications mainly include: user-side energy storage, new energy distribution storage and independent energy storage.

Subsidies are provided in the form of investment subsidies, capacity subsidies and discharge subsidies. The investment subsidy issued by the Guangzhou government is the highest, amounting to 30% of the industrialisation cost and up to RMB 10 million; the capacity subsidy is mostly based on the power of the storage plant, and in some areas of Zhejiang Province, it can reach RMB 300/kW; the discharge subsidy is the highest in Wenzhou City, with a subsidy for user-side storage of up to RMB 0.8/kWh; and most of the policies stipulate constraints such as limitations on the number of subsidised projects, the amount of subsidy, and the time limitations. cap, and constraints such as time limits.

In the first half of 2023, the introduction of subsidy policies around the world had a positive significance in promoting the development of the energy storage industry, and strongly promoted the development of the regional new energy storage industry.

The subsidy policies are as follows

June

Measures to Promote the Development of New Energy Storage Industry in Huangpu District and Guangzhou Development Zone of Guangzhou City (Draft for Public Comments)

Industry chain synergistic development support, up to 5 million yuan support. Support for the promotion and application of energy storage, for eligible energy storage projects with installed capacity of 1 MW and above, the investment body will be given a reward of RMB 0.3/kWh according to the amount of discharged electricity from the month following the month of grid-connection and commissioning, with consecutive rewards for a period not exceeding 2 years, and the total amount of funding will be up to RMB 3 million yuan. Core technology breakthrough support, the success of the project to overcome 30% of the total investment in the project to give a maximum of 10 million yuan subsidies. Platform carrier recognition support, for the first time in the field of energy storage by the national ministries and commissions individually or jointly identified R & D institutions or enterprises, to give 3 million yuan of one-time support; for the first time in the field of energy storage by the national ministries and commissions identified by the national enterprise technology centre, the national pilot demonstration project enterprises of intelligent manufacturing, industrial Internet pilot demonstration project enterprises to give 2 million yuan of one-time support. Domestic and foreign market broadening support, to carry out foreign contracting business within the validity of this approach to give a maximum of 2 million yuan of one-time support. Implementation of energy storage construction and operation enterprise performance incentives for foreign contracted projects, and give the maximum of not more than 2 million yuan to eligible enterprises. Activity support, according to participate in the exhibition activities of the actual expenditure of 50% of the booth fee subsidies per enterprise per year up to 300,000 yuan.

Several Measures on Supporting the High-Quality Development of Chengde Vanadium and Titanium Industry

Construction of national vanadium and titanium industry base. In-depth promotion of Chengde national vanadium and titanium resources comprehensive utilisation of industrial base and Chengde national vanadium and titanium new materials high-tech industrialisation base construction. Develop vanadium-based new materials and vanadium battery energy storage industry in Shuangluan District. Support Chengde City to create a vanadium energy storage demonstration area, encourage the province's photovoltaic power generation, wind power generation, smart grids, distributed power plants and other areas to promote the application of vanadium energy storage. Create a high-end vanadium and titanium industrial chain, focusing on the development of vanadium electrolyte-based vanadium energy storage battery products throughout the industrial chain. 100% of R&D expenses will be deducted before tax when calculating the payment of enterprise income tax; for high-tech enterprises, the preferential tax rate of 15% will be reduced for the payment of enterprise income tax.

Several Measures to Support the High-Quality Development of Dual-Carbon Economy in Futian District of Shenzhen City

Focus on supporting green and low-carbon technology areas such as energy storage. Investment support, the new settlement of the world's top 500 new energy enterprises headquarters, according to the conditions of the general not more than 100 million yuan of settlement support. Newly settled other new energy enterprises (organisations), according to the conditions of the settlement support, generally not more than 50 million yuan. Energy storage project support, the grid has been put into operation and the actual investment of more than 1 million yuan of electrochemical energy storage projects in accordance with the actual discharge, to give no more than 0.5 yuan / kWh of support for each project support period of three years, the same project support of no more than 2 million yuan. For eligible optical storage direct-soft projects, combined with the procurement ratio of low-carbon supermarkets, no more than 5 million yuan of support will be given according to the actual construction investment of the project within 20%. This measure shall be effective from 9 June 2023 until 31 December 2024.

Interim Management Measures for Municipal Budgetary Capital Investment in the Field of Pollution Control and Energy Saving and Carbon Reduction in Chengdu City

Support carbon reduction infrastructure projects. Support the construction of carbon-reducing infrastructure such as building a new type of power system, including projects in the fields of user-side energy storage, grid-side energy storage, power-side energy storage, and virtual power plant energy storage (post-subsidisation is carried out after acceptance and meeting the conditions). The amount of investment within the municipal budget under the Scheme shall not exceed 5 million yuan for a single project arrangement in principle. These measures shall come into force on 6 July 2023, with a validity period of 2 years.

Ouhai District's Opinions on Building "1+5+16" Industrial Policy System to Promote High-Quality Economic Development

Accelerate the construction of user-side energy storage projects, for the user-side energy storage projects that have passed acceptance and connected to the grid before 30 June 2023 and have a system capacity of 300kWh and above, give the project owner a one-time construction subsidy of 0.1 yuan/watt in accordance with the actual capacity, and the subsidy for a single project shall not exceed 100,000 yuan. Expand the scope of PV and energy storage subsidy support. For distributed photovoltaic and user-side energy storage projects completed and put into operation during the period from 1 December 2021 to 31 December 2023, manufacturing enterprises will be given a subsidy of RMB 0.1/kWh and RMB 0.8/kWh respectively according to the actual amount of power generated (discharged) for a period of two consecutive years (including the year of commissioning). Support the construction of public charging stations with integrated optical storage and charging. Subsidies will be given according to the power of the charging infrastructure, and the subsidy standard will be implemented in accordance with RMB 200 yuan per kilowatt of DC and RMB 80 yuan per kilowatt of AC. On the basis of the above municipal policies, according to the actual capacity of "photovoltaic + energy storage", the project owner will be given a one-time construction subsidy of RMB 0.1/watt, and the subsidy for a single project will not exceed RMB 100,000 yuan.

Several Measures to Promote the High-Quality Development of New Energy Storage Industry in Guangzhou Development District (Huangpu District)

There are ten contents in this measure, which are mainly divided into investment awards for major projects, support for strong and complementary chains, awards for the stationing of high-quality projects, awards for cooperative demonstration and application, awards for information technology innovation, encouragement for the development of park characteristics, subsidies for new product certification, awards for promotion and application, and support for key projects. The main terms are as follows: Newly introduced, quality projects with fixed asset investment of more than 50 million yuan will be supported at 10% of the total fixed asset investment, with a maximum of 100 million yuan for a single project. For high-quality enterprises settled in the district within the validity period of the policy, renting office buildings and plants in the district and using them for their own use, if the annual output value of the year reaches 50 million or more, the subsidy will be given according to 50% of the actual rent incurred in the year, with a maximum of 500,000 yuan per year for a single enterprise, and the support will be given for a maximum of three years. For the installed capacity of 1 MW and above the new energy storage power station, since the next month after the grid put into operation, according to the amount of discharge to give the investment body not more than 0.2 yuan / kWh support, continuous support for no more than 2 years, a single project up to 3 million yuan.



Implementing Rules for the Management of Provincial Special Funds for Promoting High-Quality Economic Development (Supporting the Development of New Energy Storage Industry) (Draft for Public Comments)

Scope of support: (a) new energy storage industry has a greater competitive advantage in the field of lithium batteries, sodium-ion batteries, liquid current batteries, hydrogen storage/fuel cells and other products, engineering research and development and industrialisation projects. (B) energy storage battery materials, electronic components, production process equipment and other products, engineering research and development and industrialisation projects. (iii) Engineering R&D and industrialisation projects of products such as battery management system (BMS), energy management system (EMS), converter (PCS) and system integration for energy storage batteries. In principle, support for industrialisation projects with an implementation period of no more than 2 years. In principle, it adopts the form of ex post facto incentives, and will be supported in accordance with the ratio of no more than 30%, and the maximum amount of award funds will not exceed 10 million yuan. These measures shall come into force on the date of issuance and shall be valid for 5 years.

Notice on Declaring Investment Projects within the Municipal Budget in the Field of Pollution Control and Energy Conservation and Carbon Reduction (Energy Storage Special) for 2023

Priority will be given to supporting projects with large demonstration effects, key reform and innovation projects, and projects with strong replicability in districts (cities) and counties. For selected user-side, grid-side, power-side and virtual power plant energy storage projects with annual utilisation hours of not less than 600 hours, a municipal budgetary subsidy of RMB 230 per kW per year and a maximum of no more than RMB 1 million for a single project will be granted according to the scale of the energy storage facility, and the subsidy cycle will last for three consecutive years.