(Yicai Global) Dec. 14 -- Most energy storage firms in China will be able to register with the local spot electricity market, opening the way for them to trade power as independent players, according to new guidelines from the Beijing Power Exchange Center.

Released on Dec. 12, the guidelines classify energy storage businesses separately from traditional market players such as electricity generators, sellers, and users. Most, except the more traditional pumped storage power station operators, will be eligible to register.

The new guidelines get energy storage firms through the last mile on their way to joining the electricity market independently, which is very important to make sure that their projects make continuous, stable and reasonable revenues, Wang Yongli, deputy director of the Energy Internet Research Center of North China Electric Power University, told Yicai Global.

Until now, energy storage projects have been bound to particular power plant projects, aimed solely at helping smooth their power output and tying their income to the power plant’s performance. The practice has meant that their capacity is often idled, making it hard for them to earn enough income.

The National Energy Administration last month unveiled a draft policy allowing business entities such as energy storage operators and virtual power plants to participate in spot electricity market trading. The Beijing Power Exchange Center’s guidelines are a practical way of achieving that.

“Getting independent status will enable these firms to enter the electricity market without any restriction, which in turn will help their potential clients in power generation, grid operation or electricity consumption to smoothe power supply whenever necessary,” Wang said. “The new practice should also provide ample nourishment for new business models within the industry.”

China’s energy storage capacity is expanding fast as more and more new energy project start up. Installed capacity was 5.7 gigawatts as of the end of last year, with newly installed capacity reaching 2.4 GW, a 54 percent jump on 2020, according to incomplete statistics from the China Energy Storage Alliance.

Editors: Tang Shihua, Martin Kadiev