On March 22nd, the "2024 2nd Zhejiang PV and Energy Storage Industry Development Conference" grandly opened in Hangzhou, Zhejiang, hosted by the Zhejiang Provincial Solar Energy Photovoltaic Industry Association and the State Power Energy Research Institute, and undertaken by International Energy Network, PV Headline, and Energy Storage Headline. As a representative of the organizer, Shen Fuxin, Secretary-General of the Zhejiang Provincial Solar Energy Photovoltaic Industry Association, gave a detailed explanation of the current development status, development characteristics, and policy advantages of the photovoltaic and energy storage industries in Zhejiang Province at the conference.

Shen Fuxin stresses:The world's photovoltaic storage is focusing on China, and the distributed market is focusing on Zhejiang. Industrial and commercial storage is also looking at Zhejiang!" His sonorous speech echoed in the conference hall and drew a burst of thunderous applause from the audience.

Zhejiang's photovoltaic energy storage develops rapidly and in a balanced way

Talking about the development status of the photovoltaic and energy storage industries in Zhejiang, Shen Fuxin fully demonstrated that the development momentum of the province's photovoltaic and energy storage industries is in full swing by sharing a set of data. "In 2023, the newly added grid-connected capacity of photovoltaic power in Zhejiang Province was 8.1777 million kilowatts, of which distributed photovoltaic power was 7.641 million kilowatts, and centralized photovoltaic power stations were 536,000 kilowatts. As of the end of December 2023, the cumulative installed grid-connected capacity of photovoltaic power in Zhejiang Province was 33.566 million kilowatts. Among them, distributed photovoltaic power was 26.896 million kilowatts, and centralized photovoltaic power stations were 6.671 million kilowatts."

In 2023, the installed amount of new energy storage for industrial and commercial use in Zhejiang Province accounted for about 44.3% of the total installed capacity in China, ranking first in the country. Statistics show that in 2023, Zhejiang Province has filed more than 1,100 industrial and commercial energy storage projects, with a total scale of more than 1.9 GW/4.5 GWh, among which Jiaxing, Ningbo and Wenzhou have filed more than 160 projects. Shen Fuxin said.

According to Shen Fuxin, the achievements made in the current Zhejiang PV and energy storage industries resulted from the strong support of the Zhejiang Provincial Government. As a result, Zhejiang's PV industry has ranked among the top in the country in terms of scale and grid-connected installed capacity. The PV industry has now become a distinctive and advantageous industry in Zhejiang's digital economy sector and is embarking on a path of high-quality development.

Since 2023, with the continuous expansion of the peak-valley price difference, the subsidy for user-side energy storage and the acceleration of power market reform, Zhejiang Province's energy storage industry has also entered a new development cycle and is accelerating its "sprint".

Shen Fuxin said that in 2022, Zhejiang distributed energy storage started to take off and the price difference between peak and valley electricity throughout the province has exceeded 1 yuan/kWh, which benefits the development of the energy storage industry; in addition, the industrial and commercial energy storage project of record has also progressively increased under the active promotion of the government.

12 Major Development Features Lock in Industry Direction

Zhejiang's PV and energy storage industries have achieved remarkable results, which is also inextricably linked to their own development characteristics. Shen Fuxin believes that the development of the province's PV and energy storage industries has 12 major characteristics:

First, there are diverse forms of development and application; second, the trend of vertical integration in the middle reaches of the industry continues; third, the agglomeration effect of industrial blocks is significant; fourth, it has manufacturing advantages; fifth, the industrial chain is relatively complete; sixth, photovoltaic accessories are at the forefront of the country; seventh, the technological level is leading; eighth, peak-valley electricity prices promote the development of the energy storage industry; ninth, the market space is large; tenth, the electricity consumption characteristics promote the energy storage demand on the user side; eleventh, there is policy support; Twelfth, the technical level is leading.

Shen Fuxin made further analysis:Zhejiang has a complete industrial chain with advantages in the manufacturing sector. Almost all the top ten photovoltaic companies are located in Zhejiang. Photovoltaics is an industry where upstream and downstream companies in the manufacturing sector and materials sector can develop in a coordinated manner.

Policy Support is a Cornerstone of Industry Development

According to Shen Fuxin, the reason why the development of Zhejiang's photovoltaic and energy storage industry has become so strong is that the support provided by the policy played a very important role. Taking the "2024 Zhejiang Province Policy to Expand Effective Investment" as an example, the policy proposes to add more than 8 million kilowatts of wind and light, promote the opening of provincial offshore wind power in a competitive way, establish a reward and subsidy mechanism for grid-side energy storage demonstration projects, and develop new energy storage management methods and user-side energy storage construction guidelines to promote the healthy development of the industry and add 1.5 million kilowatts of new energy storage.

政策确定的产业发展规模比较大，对于产业的发展和投资都是利好的消息。不仅如此，比如《关于促进浙江省新能源高质量发展的实施意见》，其内容规定了加快推进光伏高质量发展，深挖分布式光伏潜力，开展整县（市、区）推进屋顶分布式光伏规模化开发， By 2027, the province plans to reach 40 million kilowatts of installed photovoltaic capacity and a coverage rate of 60% for photovoltaic roofs on new public buildings.

《关于促进浙江省新能源高质量发展的实施意见》中也列明了，推动布局一批新能源电站周围的独立储能电站项目，鼓励整县光伏开发地区集中建设独立储能。加快新型储能规模化应用，优化电网侧储能布局，鼓励大用户、工业园区布局新型储能。 By 2027, the scale of new energy storage installed grid-connected in the province will reach 4 million kilowatts.

These policies have a positive impact on the scale development of distributed PV and energy storage industry. What is more, the corresponding subsidy policy of Zhejiang Province has directly boosted the confidence of industrial development.

During the transition period, peak-regulating projects (with an annual utilization of no less than 600 hours) will be given capacity compensation, the compensation standard will gradually decline, and the subsidy period will be temporarily set at 3 years (in accordance with a degression of 200 yuan, 180 yuan, and 170 yuan / kW year).

此外，Hangzhou Xiaoshan, Jiaxing, Wenzhou, Yiwu, Zhuji, Haining, Ningbo Haishu and other places have introduced corresponding subsidy policies, with the subsidy cap being as high as 5 million yuan.

In his closing remarks, Shen Fuxin stressed that he hoped that each solar photovoltaic and energy storage company would value brand effects, build up a good reputation, and develop the market. Ultimately, this would enable high-quality development in the solar photovoltaic and energy storage industries.

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