AVIC IRE Joins Hands with BYD to Tap Energy StorageMarket in UK
On March 30, 2017, AVIC International Renewable Energy Co., Ltd. (AVIC IRE) signed in London a Strategic Cooperation Agreement on Photovoltaic and Energy Storage Market Development in the UK with AVIC International Corporation (UK) Limited (AVIC International UK) and BYD Company Limited (BYD). In the meantime, a Cooperation Agreement on Energy Storage Power Plant Project in the UK was entered into by and between AVIC International UK and BYD.
The UK is expected to close down coal or gas fired, or old nuclear power plants with a capacity of 20.7GW by 2050. As a result, its power reserve would be lower than the required level. On the other hand, the installed capacity of renewable energy sources grew rapidly, up elevenfold over the past decade while power generation through fossil fuels was decreasing, but due to the intermittent nature of renewable energy power generation, power supply sometimes featured instability. In such a context, the UK officially launched a reform on the power market in 2013 to bring in mechanisms such as capacity market and contract for difference. In view of the maturity of the power trading market in the UK, prices of auxiliary power services keep going up while those of energy storage systems drop continuously. The energy storage market sees an increasingly promising prospect.
AVIC IRE was set up by AVIC International Holding Corporation according to the strategy of Aviation Industry Corporation of China for vigorously developing new energy resources and in accordance with modern enterprise system. Specializing in new energy business development, it has completed a wide range of wind or solar power plant projects in foreign countries including the US, Australia and Bulgaria.
AVIC International UK is deeply engaged in the local market of new energy resources and has rich experience and adequate network in market development. Up to now, it has completed a series of PV power plant projects.
The energy storage power plant project initiated this time represents another example of joint efforts of the three parties following their successful cooperation on a PV power plant in the UK. Based on their consensus on the huge potential of the UK’s energy storage market and their complementary strength in respective industrial chains, the three parties’ signing of the strategic cooperation agreement is aimed at deepening and expanding their scope of cooperation in the new energy field, demonstrating Chinese companies’ concerted efforts to tap the energy storage market in the UK, and further enhancing the presence of Chinese enterprises in the new energy market in the country.