In the context of energy transition and green development, commercial and industrial (C&I) energy storage systems have become critical for optimizing energy use and reducing operational costs. With increasingly diversified business models, this article examines five key models—Owner Investment, Energy Management Contract (EMC), Leasing, Virtual Power Plant (VPP), and Shared Storage. In this first part, we will focus on the Owner Investment, Energy Management Contract (EMC), and Leasing models, exploring their economic benefits and market potential.
The owner investment model involves C&I enterprises directly investing in energy storage systems, profiting from peak-valley electricity price arbitrage. For example, a company in Zhejiang Province invested in a 1MW/2MWh behind-the-meter storage project, utilizing a two-charge, two-discharge daily strategy to maximize peak-valley price differentials. Based on the province's electricity pricing, the company achieved approximately RMB 6.27 million in revenue over eight years, with a payback period of about 4.2 years.
Case Analysis:
Investment Cost: RMB 1.64/Wh × 2,000,000 Wh = RMB 3.28 million
Annual Revenue: RMB 6.27 million ÷ 8 years = RMB 0.78 million
Payback Period: RMB 3.28 million ÷ RMB 0.78 million ≈ 4.2 years
Advantages:
Direct Control and Flexibility: Enterprises maintain full control over system operations and can adapt strategies based on electricity price fluctuations.
Transparent Costs: Self-investment ensures clarity in financial planning and cost management.
Stable Returns: Rapid cost recovery and long-term profitability are possible by leveraging peak-valley price differences.
Environmental and Policy Benefits: Reduced carbon emissions align with national "dual carbon" goals and may attract governmental incentives.
Applicable Scenarios:
High-Energy-Consuming Industries: Heavy industrial sectors such as steel and chemicals are ideal candidates for energy storage systems due to their substantial and continuous energy demands.
Commercial Centers and Office Buildings: Large shopping malls and office complexes with high foot traffic can benefit from energy storage systems to optimize energy use and reduce operational costs.
Renewable Energy Power Plants: Renewable energy generation is often intermittent and unreliable. Pairing appropriate energy storage systems with renewable power plants can smooth output curves, enhance system stability, and improve economic efficiency.
Enterprises with Seasonal Load Adjustment Needs: Certain industries face significant seasonal load fluctuations. For example, air-conditioning service providers or agricultural irrigation facilities experience surging demand during summer due to high cooling needs, while usage declines in winter. Conversely, other businesses may face the opposite demand cycle. Energy storage systems can help balance these seasonal variations efficiently.
Market Outlook:
With widening peak-valley electricity price spreads and declining energy storage costs, the owner investment model will become increasingly attractive in regions with long peak demand periods. Enhanced profitability and policy support will likely drive broader adoption in the future.
In the EMC model, a third party invests in and operates the energy storage system, sharing benefits with the enterprise. For instance, the storage station at Gezhouba Shimen Special Cement Co. saved RMB 2 million annually in peak electricity costs, with the investor achieving cost recovery in 7–8 years.
Case Analysis:
Revenue sharing ratios: Investor-enterprise splits of 10%-90% or 15%-85%
Annual savings: RMB 2 million in electricity costs.
Advantages:
Lower Upfront Costs: Enterprises avoid high initial capital outlays.
Expert Management: Third-party investors provide professional design, installation, and maintenance services.
Risk Sharing: Investors handle performance risks, such as system maintenance and replacement.
Flexible Profit Distribution: Customized profit-sharing models ensure mutual benefit.
Applicable Scenarios:
Small and Medium Enterprises (SMEs): For enterprises with limited budgets but a desire to adopt advanced energy storage technologies, the EMC model is an ideal choice. By involving third-party investors, these businesses can benefit from the economic advantages of energy storage without bearing the burden of high upfront costs.
Public Facilities: Hospitals, schools, and government offices often have high requirements for stable power supply but operate within tight budgets. The EMC model can help these institutions improve energy efficiency while reducing operational and maintenance costs.
Industrial Parks: Multiple enterprises within an industrial park can collaborate on EMC projects to share resources and distribute costs. This approach not only enhances the park’s overall energy management capabilities but also fosters stronger cooperation among enterprises.
Commercial Complexes: Large shopping malls, office buildings, and other high-traffic locations are also well-suited for the EMC model. These facilities typically have significant energy demands with pronounced day-night usage variations. By efficiently configuring energy storage systems, they can store inexpensive off-peak electricity for use during peak hours, significantly reducing overall energy expenses.
Market Outlook:
As more enterprises seek cost-efficient energy solutions, EMC models will play a significant role in driving adoption. Government policies supporting energy efficiency and emissions reduction further enhance this model's appeal.
The leasing model offers a viable solution for enterprises constrained by capital. Leasing companies own the equipment, while enterprises gain usage rights, with an option to purchase the system at the end of the lease term. Typical financing covers 70%-80% of the total cost, with rates around 0.65%, dropping to 0.55% for combined solar-plus-storage projects.
Case Analysis:
Financing rate: 0.55%-0.65%
Payback period: ~4.75 years
Advantages:
Flexible Financing: Lease payments alleviate cash flow pressure.
Tax Benefits: Lease payments are often tax-deductible.
Risk Mitigation: Ownership and maintenance responsibilities lie with the leasing company.
Technology Support: Leasing companies provide technical assistance, ensuring optimal system performance.
Applicable Scenarios:
Small and Medium Enterprises (SMEs): Many SMEs face financial constraints during their early stages, making it difficult to invest large sums in energy storage systems. The leasing model allows these enterprises to distribute costs over time, alleviating financial pressure while gradually achieving energy optimization and economic benefits.
Startups: Startups often lack sufficient capital during their initial phase but require advanced technology to enhance their competitiveness. The leasing model enables them to quickly adopt energy storage systems, improve operational efficiency, and reduce energy consumption costs.
Specific Industries: Industries with high demands for stable power supply, such as data centers and cold chain logistics, can benefit significantly from the leasing model. It ensures consistent and reliable electricity while avoiding the burden of high upfront investments.
Distributed Solar PV Projects: Combining energy storage systems with distributed solar PV projects allows excess solar power generated during the day to be stored for use at night or on cloudy days, further improving energy utilization efficiency. This approach is particularly suitable for companies aiming to reduce carbon emissions through green energy solutions.
Market Outlook:
The leasing model is expected to grow in popularity due to its financial accessibility and alignment with government incentives for renewable energy projects.
