Government subsidies play a pivotal role in energy storage industry development, stimulating operator investment and system participation while ensuring power system benefits. As shown in Fig. 1, this creates dynamic interactions among government regulators, energy storage operators, and the broader power system entities.
The stability analysis of each equilibrium point across the four scenarios is presented in Supplementary Information Table B.4.1. Government subsidy levels both influence and are influenced by energy storage operators'' engagement and power system transformation.
The energy storage industry in Chongqing, China, is governed by a comprehensive set of subsidy policies. As such, relevant data from this region more accurately reflect the impact of governmental subsidies on this sector.
Additionally, the energy storage capacity subsidy is a one-time payment of 200 CNY/kW, while there are ongoing subsidies for charging and discharging (0.5 CNY/kWh) and for peak-valley arbitrage (0.7 CNY/kWh). The energy storage system is assumed to operate for 300 days annually, with two charge-discharge cycles per day.
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