Currently, the global generation of renewable energy is continuously increasing. However, due to its significant variability, it is challenging to ensure a stable supply. The application of energy storage technology provides an effective solution to this issue, garnering attention from countries worldwide. Various policies have been introduced to promote the development of energy storage. For instance, the United States has implemented the Investment Tax Credit (ITC) for energy storage, Europe has introduced the Green New Deal, and various local governments in China have developed energy storage plans. These measures have positively contributed to the growth of the energy storage market.
According to the IEA (International Energy Agency), to facilitate the rapid deployment of new solar PV and wind power that is necessary to triple renewables, global energy storage capacity must increase sixfold to 1500 GW by 2030. Batteries account for 90% of the increase in storage in the Net Zero Emissions by 2050 (NZE) Scenario, rising 14-fold to 1200 GW by 2030. Battery energy storage shows great potential in the global energy storage sector.
Energy storage can be categorized based on application scenarios into power generation-side, grid-side, and user-side storage. Power generation-side and grid-side storage are also known as front-of-meter storage or large-scale storage, while user-side storage is referred to as behind-the-meter storage. User-side storage can be further divided into commercial and industrial (C&I) storage, and residential storage. Large-scale energy storage currently holds the majority market share globally. However, in the past two years, C&I energy storage has been gaining significant traction. In 2022, the global growth rate for C&I energy storage was only 14.58%, but by 2023, the newly installed capacity reached 1.8GW, marking a 115% year-over-year increase. The major markets for global C&I energy storage are concentrated in China, the United States, and Europe (with Germany being a notable representative). Vilion has focused on the R&D, production, sales, and service of C&I battery storage technology and products since its establishment in 2019. In addition to the domestic market, Vilion has successfully expanded into many European markets and established the local company in Europe.
In the following article, we will provide an overview of the differences between C&I energy storage and large-scale energy storage.
一、
Definition of C&I Energy Storage:
C&I energy storage systems are primarily used in industrial and commercial settings such as factories, office parks, shopping malls, and hotels. Compared to large-scale storage systems, C&I systems have smaller capacities and typically use a single-cabinet format. These systems are highly integrated and feature a modular design.
1 Application Scenarios:
（1）Peak Shaving and Valley Filling:
Store electricity during off-peak periods when prices are lower, and discharge during peak periods when prices are higher, reducing electricity costs.
（2）Backup Power:
Provide emergency backup power during grid outages to ensure continuity of production and operations.
（3）Increase Renewable Energy Utilization:
Combine with renewable energy sources such as solar and wind power to store excess electricity, enhancing energy utilization efficiency.
（4）Load Management:
Balance the electrical load within the park, reducing pressure on the grid.
2 Characteristics
（1）Moderate Scale:
Storage system capacities typically range from several hundred kWh to a few MWh.
（2）Flexible Deployment:
The system design is adaptable to various power and capacity requirements.
（3）Cost-Effective:
Quickly achieve return on investment through electricity cost savings and providing backup power.
二、Large-Scale Energy Storage
(Large Storage) Definition:
Large-scale energy storage systems generally refer to projects with significant capacity, primarily used for grid-level power regulation and stabilization, serving utilities and large power infrastructure. These products are typically structured as containerized systems, divided into DC-side systems and medium-voltage conversion systems.
1 Application Scenarios:
（1）Frequency Regulation:
Rapidly respond to grid frequency fluctuations to maintain grid stability.
（2）Peak Shaving and Valley Filling:
Provide power support during peak electricity demand periods and store excess electricity during low-demand periods.
（3）Backup Power Supply:
Provide high-capacity backup power during large-scale blackouts or electricity shortages.
（4）Renewable Energy Integration Support:
Smooth the output fluctuations of renewable energy sources such as wind and solar to facilitate their large-scale grid integration.
2 Characteristics
（1）Huge Scale:
Typically ranges in capacity from tens of MWh to hundreds of MWh.
（2）Complex Systems:
Design and operation are complex, requiring consideration of grid requirements, scheduling strategies, and other multifaceted factors.
（3）High Investment:
The initial investment is relatively large, but with technological advancements and economies of scale, costs gradually decrease.
三、Summary：
Summary: C&I energy storage and large-scale storage differ in their application scenarios, system scales, functionalities, and characteristics. C&I storage focuses on meeting specific electricity demand at particular sites, providing cost-effectiveness and operational reliability. In contrast, large-scale storage primarily serves grid-level regulation and stability, addressing larger-scale electricity supply-demand balance issues.
With the continuous advancement of energy storage technology and the reduction in costs, both C&I energy storage and large-scale storage will play increasingly important roles in facilitating global energy transition and sustainable development.
