We are pleased to share our Energy Storage interview with Bono Ge, Senior Sales Manager, BYD Energy Storage in Europe.
How to make energy storage projects bankable?
First of all, the profitability of all energy storage projects is the most important factor to manufacturers, developers, operators, investors and so on. To make the energy storage projects bankable, I believe joint efforts from the industry are desired. Manufacturers need to control the cost and quality and prolong the duration of operation life of products, this will give other players in the chain more flexibility. Developers need to make a clearer definition of the project and well budget the project at the beginning. Operators shall operate the system as pre-defined and try to search for more revenue streams for energy storage systems. Investors shall do their best to provide less expensive funding. At the same time, regulators need to initiate and create better policies for the market.
How to best reduce the costs of energy storage?
At the right moment, energy storage price is mainly based on the battery price. And battery cost down is primarily driven by the automotive industry. For example, 95% of BYD’s battery production has been utilised on the vehicles while only 5% has been used for stationary energy storage. So to increase the energy storage market size is the key point to reduce the cost. The other way is standardisation, market players need to make clearer on the product definition and figure out specifications within the industry. This will help to reduce the production and maintenance cost.
How to create more standardisation and clearer specifications?
Regulators need to be clear about what are desired and make clear about the revenue streams for energy storage users. Based on the policies and revenue streams, manufacturers can figure out the specifications with other players in the chain to work out the specifications and the produce standard products for the market. Like in the UK, FFR, EFR are the main opportunities for energy storage, and people can forecast that that market will last for some time, then they will be encouraged to design and accept standard products.
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