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October 10, 2023

Development and Construction Process of Commercial Energy Storage System

Commercial and Industrial energy storage systems often undergo a development and construction process lasting from 3 to 6 months or even longer. To effectively manage project development and construction, it is essential to have a thorough understanding of the entire process of energy storage solutions. In this article, we will delve into the development and construction of commercial and industrial energy storage facilities, covering the full spectrum from project development, project funding, project design, contract signing, and project implementation.

Utility scale energy storage

01 Project Development

Focus on factors and aims such as peak-to-off-peak electricity price differentials, local policy subsidies, annual electricity usage and consumption, Ensure Power Supply, etc.

In principle, select regions with peak-to-off-peak electricity price differentials not lower than 0.7 CNY/kWh, with larger differentials being preferable.

Take into account current regional government subsidy policies.

Ideally, businesses should have annual electricity usage of not less than 330 days per year and a consumption of at least 6 million kWh per year.

Consider the fire hazard classification of goods produced and stored by the user, which should not be in categories A or B.

Other factors include the site location, conditions of the distribution room, and, for cost savings, proximity to the distribution room while meeting fire safety requirements.

02 Project Funding

Collect electricity bills for the past 12 months, the electricity load curve of the user, a one-line diagram, transformer capacity and quantity, site conditions and area, and the working and maintenance hours of the user.

03 Project Design

Determine the power conversion system (PCS) capacity and battery capacity.

Work on electrical design, layout planning, lightning protection and grounding, fire safety, civil engineering design, and other relevant aspects.

Choose Battery Energy Storage System accordingly, such as Lithium Battery or Opzv Battery. On grid solar system or Off Grid Solar System.

04 Contract Signing

Once preliminary funding and site reconnaissance are confirmed, reach an agreement with the user on the collaboration model.

You can sign an initial project cooperation agreement or framework agreement based on the user's preferences.

Simultaneously, prepare a project proposal for user decision-making and further refine the project plan based on user feedback.

After reaching preliminary agreements with the user regarding the collaboration model and plan, fulfill the internal approval and decision-making procedures within the investment unit.

Once internal decision requirements are met, formalize the collaboration agreement with the user.

The investment unit may rely on an existing project company in the region or establish a new one to act as the implementing body for the project, and as the responsible entity for handling subsequent procedures.

05 Project Implementation

Prior to commencing the project, complete necessary procedures, including project filing with the National Development and Reform Commission (NDRC), electricity access approval, fire safety design review, environmental impact assessment report, case review report, engineering quality supervision procedures, and energy-saving review opinions.

Complete the grid connection application form.

Upon project completion, the construction unit organizes a construction project acceptance, and issues a project completion acceptance report.

The construction unit then arranges a grid connection acceptance, with a testing organization providing a grid connection testing report, and the grid company issuing a grid connection acceptance opinion, adhering to specific requirements of local grid companies.

Depending on the scale of the energy storage facility, construction engineering fire acceptance or fire filing procedures may be required, in accordance with local requirements.

This comprehensive guide covers the key steps in the development and construction of commercial and industrial energy storage facilities, ensuring the smooth progress and compliant operation of your projects.

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