Development status, policy, and market mechanisms for battery energy storage in the US, China, Australia, and the UK

Abstract

Energy storage plays a crucial role in the safe and stable operation of power systems under high renewable energy penetration. Unlike conventional energy sources, the special physical characteristics of battery energy storage make it challenging to apply in practice. Some countries have been developing battery energy storage for a long time, and it is worthwhile to learn from the policies and market mechanisms for the development of battery energy storage to clear the obstacles for large-scale development and participation in the power market. This study focuses on the current status of battery energy storage, development policies, and key mechanisms for participating in the market and summarizes the practical experiences of the US, China, Australia, and the UK in terms of policies and market mechanisms. Then, the challenges of the current development of battery energy storage are analyzed, and suggestions are made in terms of policies and market mechanisms, so as to provide a reference for the development of battery energy storage in other countries or regions.