Recently, the Development and Reform Commission of Yunnan Province and the Energy Bureau of Yunnan Province jointly issued the "Notice on Further Promoting the Development of New-type Shared Energy Storage," which clarifies that the "new energy + energy storage" mechanism will continue to be implemented in 2025. The notice stipulates that centralized wind and photovoltaic power generation projects must configure energy storage capacity at no less than 10% of their installed capacity (with a duration of no less than 2 hours). This encourages new energy companies to place greater emphasis on the construction of energy storage facilities to ensure stable power output and effective regulation during the power generation process.

In terms of energy storage project leasing services, the policy has established differentiated standards based on different technical routes. Energy storage projects with lithium iron phosphate as the main technical route are provided with leasing services at 1.8 times their installed capacity, while those with vanadium flow battery as the main technical route are provided with leasing services at 3 times their installed capacity.

This differentiated leasing standard fully takes into account the characteristics and advantages of different energy storage technologies, encouraging companies to choose suitable energy storage technologies based on their actual situations. Lithium iron phosphate energy storage technology has the advantages of high energy density, long cycle life, and good safety, and is widely used in the market; vanadium flow battery energy storage technology has the advantages of high power, large capacity, high charge and discharge efficiency, and long cycle life, making it particularly suitable for large-scale energy storage applications. By providing different leasing multiples for different technical routes, the policy guides the diversified development of the energy storage industry and promotes continuous innovation and progress in various energy storage technologies.

For centralized wind and photovoltaic power generation companies that do not fully lease the required capacity in a given month, the regulation fee will be charged at a 30% increase over the reference price specified in the "Implementation Plan." For new-type shared energy storage that is not fully leased in a given month, the regulation fee will be obtained at a 30% decrease over the reference price specified in the "Implementation Plan." The difference in funds will be shared proportionally by the market participants of the regulation capacity according to their tradable capacity for that month.

New-type shared energy storage projects will be given priority dispatch support according to the principle of charging during off-peak hours and discharging during peak hours, with the number of equivalent charge and discharge dispatches in principle not less than 260 times per year. Yunnan Power Grid Company is required to actively support the "two charges and two discharges" operation and dispatch of new-type independent energy storage projects. This priority dispatch policy increases the utilization rate of energy storage projects, enhances their economic viability, and indirectly encourages new energy companies to participate in energy storage configuration.

Since 2021, regions such as Shandong, Henan, and Zhejiang have clarified that new energy projects can flexibly configure energy storage through leasing and other methods. The leasing model, as a typical business model for independent energy storage, has gradually emerged. According to incomplete statistics, as of December 2024, 382.026 MWh of energy storage capacity leasing projects have started bidding.

Self-construction of energy storage refers to enterprises independently investing in the construction of energy storage power stations using their own funds or other financing methods. Based on the operation and maintenance team, the power station is managed on a daily basis, and all the revenue obtained by the energy storage power station belongs to itself. The enterprise has the ownership and operational rights of the energy storage power station, which can continuously meet the energy storage requirements of multiple new energy power stations under its ownership. However, the initial investment cost is high, and the enterprise needs to bear the operational safety risks and market operation risks of the energy storage power station.

Leasing energy storage, also known as "capacity leasing" or "quota leasing," means that new energy enterprises sign lease contracts with independent energy storage operators to meet the energy storage requirements of new energy stations by leasing part of the energy storage power station's capacity. New energy enterprises only need to pay the annual capacity lease fees, avoiding the cash flow pressure of initial investment under the self-construction model. Generally, they do not need to operate and manage the energy storage power station, but they need to bear the risk of energy storage lease market price fluctuations. Capacity leasing is one of the important sources of income for independent energy storage power stations to realize commercial value. Before auxiliary services and spot markets become the main sources of income, the market mechanism, income channels, and the implementation strength of new energy strong energy storage policies for capacity leasing still need to be gradually improved.

Under the promotion of new energy energy storage policies, configuring energy storage has become a necessary prerequisite for the grid connection of new energy power generation. At present, self-built energy storage power stations generally have problems such as low utilization rate, poor economic viability, and large safety management challenges. Considering the potential for future construction cost reductions, leasing energy storage can be considered as a feasible option for investment and construction. According to incomplete statistics on current capacity leasing bidding, the average price formed by bidding is only about half of the government's guiding average price, and most of them are short-term leases of 0.5 to 3 years. The market price of energy storage leasing is at a relatively low level, providing favorable conditions for the promotion of leasing energy storage.

	Main Advantages	Main Disadvantages
Self-Build Model	1、Ownership and operational rights of energy storage, capable of continuously meeting the storage needs of multiple new energy power stations.   2、Based on the development demands of local governments, it is possible to strive for additional benefits such as new energy indicators and replacement of coal-fired units	1、High initial investment cost. 2、Currently, the economic viability of energy storage power stations is poor, and there is a need to bear market operation risks. 3、There is a need to enhance the operation and maintenance capabilities of the power station, as well as the ability to prevent safety risks.
Leasing Model	1、Renting instead of building, reducing initial investment costs 2、Saving land resources. 3、Generally, there are no operational safety risks and market operation risks associated with energy storage power stations	1、When signing a new contract after the lease expires, there is a need to bear the risk of market price fluctuations in energy storage leasing. 2、In most areas, the lessee does not have the right to use energy storage, and cannot share in any potential market excess profits during the lease period

The implementation of the "new energy + energy storage" mechanism in Yunnan in 2025 is an important measure for Yunnan Province to actively respond to the national energy transition strategy. Vanadium flow battery energy storage technology, as one of the important supports for new energy development, can effectively solve the instability and intermittency of new energy power generation, increase the proportion of new energy in the power system, and promote the optimization and upgrading of the energy structure.

Product Series：

Vanadium Redox Flow Battery - Energy Storage System / BMS

Liquid Flow Battery - Non-Fluorinated Ion Exchange Membrane

LAB Series R&D Demonstration Equipment

NeLCOS® Energy Storage System Levelized Cost of Energy Calculator