Charging without transmission and distribution prices! Henan adopts multiple measures to support independent energy storage and broaden revenue channels

Apr 01,2026


NorthPole Energy Storage News: The Henan Development and Reform Commission has released a significant document on energy storage, with clear development goals: by 2030, the installed capacity of new energy storage is expected to reach 23 GW, including 8 GW of user-side energy storage, driving direct investment of 40 billion yuan.

In terms of improving price incentive policies, the electricity price for independent energy storage power stations and the feed-in tariff will be settled according to the spot market price and rules. When independent energy storage power stations supply electricity to the grid, the corresponding charging electricity will not bear transmission and distribution prices and government funds and surcharges. For independent small-scale pumped storage and new energy storage power stations supplying electricity to incremental distribution networks, the pumping or corresponding charging electricity will not be charged transmission and distribution prices, government funds and surcharges.

Support coal-fired power plants with energy storage, independent energy storage, and energy storage aggregators to improve grid-connected performance and obtain benefits such as frequency regulation, black start, ramping, and reserve. Based on the rated power of the project, the full-power discharge duration, and the peak demand duration of the system, the effective capacity will be determined, and a capacity price mechanism for new energy storage and other regulatory resources will be improved to provide reasonable compensation for the reliable capacity of the power system.

In terms of strengthening research, production, education, and application, the document proposes: for lithium battery energy storage projects with energy density greater than 180 Wh/kg, cycle life greater than 10,000 times, and system cycle efficiency greater than 89%, and all-vanadium redox flow energy storage projects with 100% depth of discharge, cycle life greater than 20,000 times, and duration greater than 4 hours, priority support will be given in project planning, approval, grid connection, and central budgetary funds.

For the establishment of national-level industrial technology engineering centers, innovation centers, laboratories, key laboratories, and demonstration bases in the field of new energy storage in Henan Province, a 50,000-kilowatt new energy resource allocation incentive will be provided for every 100 million yuan of investment. For projects that obtain national major science and technology projects, national demonstration projects, and the first (set) of major technical equipment projects in the energy field, a 20,000-kilowatt new energy resource allocation incentive will be provided for every 100 million yuan of investment.

The document supports the transformation of new energy storage projects that have not applied for fiscal reward funds and are already in operation into independent energy storage power stations when conditions permit, to improve equipment utilization.

Support the integrated development of coal-fired power and energy storage to enhance the value of energy storage projects. Promote the joint operation of coal-fired power units with electrochemical energy storage, compressed air energy storage, flywheel energy storage, and thermal energy storage, optimize operation methods, and enhance regulation capabilities.

For user-side energy storage, encourage the development of source-grid-load-storage integrated projects in industries such as chemical, steel, manufacturing, data (computing) centers, and metallurgy, and configure long-duration energy storage to reduce the occupation of reserve capacity and lower electricity costs. Encourage source-grid-load-storage integrated projects to utilize the built energy storage capacity, disconnect from the large power grid, and participate in peak shaving and valley filling of the public power grid.

Improve the leasing and financing channels for electrolyte, support the establishment of platform companies, and encourage enterprises to use electrolyte in a leasing form to reduce the initial investment cost of all-vanadium redox flow energy storage and enhance its competitiveness.

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