The Role of "Peak Shaving and Valley Filling" in the Energy Storage Market

Peak Shaving and Valley Filling refers to using energy storage systems to store electricity during peak demand periods and release it during off-peak times. This approach balances power supply and demand, ensuring stable grid operations. In the energy storage market, "peak shaving and valley filling" plays a vital role in optimizing energy systems and enhancing efficiency.

1. Benefits of Peak Shaving and Valley Filling in Energy Storage

1.1 Balancing Power Supply and Demand

Renewable energy sources like solar and wind are intermittent and unpredictable, making it challenging to align power generation with consumption needs. Energy storage systems address this mismatch by storing excess electricity generated during periods of high output and releasing it during peak demand times. For instance:

• Excess solar energy generated during the day can be stored and used at night.
• Stored energy can meet demand during high-consumption periods, stabilizing the grid and mitigating the variability of renewable energy.

1.2 Enhancing Energy Efficiency

Energy storage systems optimize electricity usage by reducing costs and promoting efficient resource use. For example:

• Businesses can charge energy storage systems during off-peak periods when electricity prices are low and discharge them during peak periods to cut energy costs.
• Energy storage enables participation in auxiliary power services like frequency and voltage regulation, contributing to grid stability.
  By leveraging time-based electricity price differences, businesses and society can achieve significant economic and social benefits.

2. Why Is Peak Shaving and Valley Filling Important?

2.1 Supporting Renewable Energy Development

Peak shaving and valley filling are crucial for the growth of renewable energy sources like wind and solar power. Policies in some regions encourage power generation companies to build or acquire storage systems to improve grid integration of renewable energy.

• "Solar/Wind + Storage": This combination mitigates curtailment of wind and solar power, ensuring full utilization of renewable resources and reducing wastage.
• Energy storage helps eliminate power supply fluctuations, ensuring stable and safe integration of renewable energy into the grid.

2.2 Expanding the Energy Storage Market

Government policies are creating a booming market for energy storage. For example:

• Many regions require new solar and wind installations to allocate 10-20% of their capacity to energy storage systems.
• These mandates drive rapid growth in the energy storage industry, unlocking massive market potential and creating a "blue ocean" industry.
  As policies supporting the development of advanced energy storage systems take effect, leading companies in inverters and storage technologies will gain significant opportunities for expansion, benefiting from the industry's accelerated growth.

Conclusion

Peak shaving and valley filling play a transformative role in the energy storage market by balancing supply and demand, reducing costs, and supporting the growth of renewable energy. This approach not only drives technological innovation but also creates vast opportunities for businesses and society. As policies and technologies evolve, energy storage systems will become a cornerstone of a sustainable energy future, ensuring a resilient and efficient power grid.