Dyness Knowledge| How should we choose among the four major cooperation models for C&I energy storage?

Facing the continuous development of industrial and commercial energy storage, Dyness, as a high-quality product manufacturer and multi-scenario solution provider in the industry, has carefully polished and launched the photovoltaic storage charging air-cooled integrated cabinet "100kW/215kWh", the liquid-cooled integrated cabinet "100kW/232kWh" and the upcoming 100kWh and 5000kWh products. Create a full-scenario product layout for industry and commerce, support various cooperation methods to complete project implementation, and jointly create economic benefits.

With the transformation of the domestic energy market, the industrial and commercial energy storage sector is welcoming new development opportunities. The widening difference between peak and valley electricity prices, the reduction of industrial chain costs, the introduction of government subsidy policies, and new profit models such as demand-side response have provided strong support for the rapid development of industrial and commercial energy storage. However, many companies with conditions and intentions are still confused about how to get involved in this field. To this end, we will systematically introduce the four main investment models of industrial and commercial energy storage to help companies make wise decisions.

Owner self-investment model

Under the owner-invested model, enterprises independently invest in and operate energy storage projects, and the main profit channel is peak-valley arbitrage. With the advancement of technology, energy storage power stations can also participate in demand-side response, power auxiliary services, and power spot trading, further increasing the source of income. This model requires enterprises to have strong financial strength because they need to undertake the construction, management, and maintenance of energy storage power stations. But correspondingly, enterprises also have higher flexibility and market response speed. This model is more suitable for large industrial and commercial users with certain financial strength, or industrial and commercial users with high energy consumption, large peak-valley price differences in their locations, and urgent need for energy transformation.

Energy Management Contract (EMC) Model

When enterprises are unable to invest on their own for various reasons, they can choose to cooperate with third-party investors, namely the contract energy management model. Through the EMC contract, enterprises outsource energy management and share profits with investors, thereby achieving the goal of reducing energy consumption and saving electricity costs. Under this model, there are various ways to share benefits, including rent payment, proportional sharing of project revenue, or enjoying discounts on peak-time discharge electricity prices. The EMC model is widely used among industrial users, which not only helps enterprises to optimize energy consumption management, but also brings considerable benefits.

Financial leasing model

For companies that are short of funds but are interested in investing in energy storage power stations, financial leasing is an ideal solution. By introducing a financial leasing company as the lessor of energy storage equipment, companies can reduce their financial pressure. During the lease period, the company enjoys the right to use the equipment and can obtain ownership of the equipment after the lease expires. This model includes direct leasing and leaseback, which can be flexibly selected according to the project type. In addition, this model usually provides a higher financing amount and a relatively long financing period.

Contract Energy Management + Financial Leasing Model

This comprehensive model combines the advantages of contract energy management and financial leasing. By introducing financial leasing parties, the cash flow pressure of energy service providers and owners is reduced. At the same time, energy service providers can leverage their professional advantages in system operation to promote the smooth implementation of energy storage projects. Although this model involves multiple parties and the contract signing process is relatively complex, its flexibility and diversity make it likely to be more widely used in the future.

Basic conditions for investment in C&I energy storage projects

• Large difference in peak-valley electricity prices and high number of charge and discharge times: Peak-valley arbitrage is the main profit model for industrial and commercial energy storage. The larger the difference in electricity prices, the more charge and discharge times can be allowed during local peak and normal periods, and the higher the project's return on investment.
• Adequate transformer capacity: Ensuring that the transformer has sufficient surplus capacity to charge the energy storage system during low-power consumption and normal periods is a prerequisite for achieving good economic benefits.
• Policy subsidies: Subsidy policies in some regions can help improve project returns.

In summary, when enterprises choose the operation mode of industrial and commercial energy storage, they should weigh the pros and cons according to their own situation and needs to choose the most suitable mode to maximize their benefits. I hope that the summary of this article can provide a useful reference for the decision-making of enterprises.

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