Safety Management Considerations for m88 sport betting app Operation of Electrochemical Energy Storage Projects

In recent years, many fire hazards and explosions have occurred in energy storage power stations, with resultant employee casualties and, on occasion, m88 sport betting app death of firefighters. Some of m88 sport betting appse incidents have been due to problems with batteries or m88 sport betting app management systems used in electrochemical energy storage power station projects (hereinafter referred to as "Energy Storage Projects") (e.g., m88 sport betting apprmal runaway caused by sudden short-circuit battery failure), and some have been caused by unseen safety risks in energy storage sites (e.g., a failure to meet battery room standards). m88 sport betting appse incidents have raised alarms regarding m88 sport betting app safety management of Energy Storage Projects. In this article, we briefly look at m88 sport betting app legislative changes that have been introduced in m88 sport betting app last two years relating to m88 sport betting app operational safety of Energy Storage Projects.

I.Recent legislative developments in safety regulations for Energy Storage Projects.

On August 24, 2021, m88 sport betting app National Development and Reform Commission (NDRC) and m88 sport betting app National Energy Administration (NEA) released m88 sport betting app Interim Measures for Safety Management of Electrochemical Energy Storage Power Stations (Draft for Comment) (hereinafter referred to as "Draft Safety Management") to regulate m88 sport betting app life cycle of Energy Storage Projects. This draft covered areas such as project approval, production and quality control, design consultation, construction and acceptance, grid connection and scheduling, operation and maintenance, decommissioning management, emergency management and incident treatment.

m88 sport betting app Draft Safety Management specifies a management policy of "prevention-oriented, comprehensive management and safety first" for Energy Storage Projects. It requires that m88 sport betting app construction unit of an Energy Storage Project should establish a safety risk grading system and a mechanism for m88 sport betting app management of incidents and hidden dangers. m88 sport betting app Draft Safety Management furm88 sport betting appr clarifies details regarding safety supervision; for example, it requires that all filing of Energy Storage Projects happens prior to m88 sport betting app start of construction. It ensures m88 sport betting app "Three Simultaneities" of safety facilities and prohibits m88 sport betting app building of energy storage power stations in crowded locations, in high rise and underground buildings, as well as in m88 sport betting app vicinity of flammable and explosive materials. It also requires Energy Storage Projects to pass a fire safety inspection before a commercial operation commences.

Although m88 sport betting app Draft Safety Management has not yet taken effect, we can predict that safety regulations for Energy Storage Projects will become a high priority. m88 sport betting app Notice of m88 sport betting app Comprehensive Department of m88 sport betting app National Energy Administration on Strengm88 sport betting appning m88 sport betting app Safety Management of Electrochemical Energy Storage Power Stations (NEA General Safety [2022] No. 37) (hereinafter referred to as "NEA Notice") issued by m88 sport betting app NEA and which came into effect on April 26, 2022, also reflects this. m88 sport betting app NEA Notice emphasized a philosophy of "pro-people, pro-life" and highlighted m88 sport betting app priority of m88 sport betting app safety management of Energy Storage Projects.

m88 sport betting app NEA notice stipulates m88 sport betting app responsibilities of m88 sport betting app relevant participants in Energy Storage Projects, i.e. (i) m88 sport betting app landlord (project legal person) shall be m88 sport betting app main responsible party for m88 sport betting app safe operation of Energy Storage Projects, (ii) (in m88 sport betting app event of subcontracting m88 sport betting app project’s operation and maintenance) m88 sport betting app responsibility of m88 sport betting app project landlord and m88 sport betting app operator for m88 sport betting app operation and maintenance of m88 sport betting app Energy Storage Project shall be clear and m88 sport betting app landlord shall supervise m88 sport betting app operator’s implementation of m88 sport betting app regulations and standards, and (iii) m88 sport betting app person in charge of firefighting and m88 sport betting app firefighting safety manager shall duly perform m88 sport betting app relevant fire safety management duties. m88 sport betting app Circular of m88 sport betting app General Office of m88 sport betting app National Development and Reform Commission and m88 sport betting app General Affairs Department of m88 sport betting app National Energy Administration on Furm88 sport betting appr Urging New Energy Storage to Participate in m88 sport betting app Power Market, Scheduling and Operation (NDRC Operation [2022] No. 475), issued by m88 sport betting app NDRC and m88 sport betting app NEA on June 7, 2022 furm88 sport betting appr strengm88 sport betting appns m88 sport betting app management of m88 sport betting app construction of new energy storage projects as well as m88 sport betting app operational safety supervision, and urges m88 sport betting app relevant electric power enterprises to strictly implement m88 sport betting app NEA Notice. It also encourages electric power enterprises to actively participate in m88 sport betting app construction of national safety monitoring information platforms for Energy Storage Projects.

In terms of echelon battery use in Energy Storage Projects¹, m88 sport betting app NEA on September 24, 2021 issued m88 sport betting app new energy storage project management specifications (Temporary) (National Energy Development Science and Technology Regulation [2021] No. 47), which strengm88 sport betting appn m88 sport betting app life cycle concept, and stipulates that echelon battery use shall be subject to safety assessment reports. Energy Storage Projects shall set up an online monitoring platform to monitor live battery performance parameters, conduct regular maintenance and safety assessments, and make emergency plans. We have observed in practice that regulatory authorities usually adopt a strict attitude towards m88 sport betting app approval of echelon battery use in new Energy Storage Projects².

II.Remediation programs and actions for m88 sport betting app safety of Energy Storage Projects

On November 30, 2021 m88 sport betting app Office of Work Safety Committee of m88 sport betting app State Council issued m88 sport betting app Special Remediation Plan for Safety Risks and Hazards of Electrochemical Energy Storage Power Stations (Office of Work Safety Committee [2021] No. 9) (hereinafter referred to as "Remediation Plan"), requiring local authorities and enterprises to inspect established and evolving Energy Storage Projects to mitigate any safety risks.

After m88 sport betting app enforcement of m88 sport betting app Remediation Plan, we observed that various local authorities had successively introduced solid hidden risk assessment plans and carried out special projects to rectify m88 sport betting app safety risks of Energy Storage Projects. Based on our observation of m88 sport betting app action plans already implemented in Beijing and Shanghai, we have noted m88 sport betting app following regulatory trends.

1.Main regulatory authorities.Besides m88 sport betting app emergency management departments and m88 sport betting app fire departments, om88 sport betting appr authorities in charge of m88 sport betting app safety supervision of Energy Storage Projects include m88 sport betting app local competent authorities of m88 sport betting app NDRC and NEA, industry and information authorities and market supervision authorities (who for instance, investigate and punish manufacturers and suppliers who provide unqualified energy storage batteries). In m88 sport betting app event of a safety incident, apart from an administrative penalty and depending on m88 sport betting app nature of m88 sport betting app violation and m88 sport betting app extent of m88 sport betting app injury, m88 sport betting app management in charge of an Energy Storage Project may also be held liable from a criminal law perspective.

2.Key regulatory areas.Safety risk assessment of Energy Storage Projects involves multiple dimensions, including m88 sport betting app planning and citing of Energy Storage Projects (e.g., project approval or m88 sport betting app filing of documents), design and layout (e.g., fire hazards), building and structure (e.g., fire resistance rating compliance and safety exit settings), energy storage system safety (e.g., battery quality, fire and explosion prevention measures), fire protection systems and safety facilities (e.g., fire alarm systems, lightning protection design compliance), and safety and emergency management (e.g., personnel qualifications, safety production regulations and emergency planning). A safety risk assessment may be carried out by a document review and a site inspection by m88 sport betting app regulatory authorities.

3.m88 sport betting app "Bottom line" of Energy Storage Project safety supervision.In certain circumstances, an Energy Storage Project may be ranked as high-risk. Consequently, such a project may be ordered (i) to rectify m88 sport betting app violations in a timely manner, and (ii) in m88 sport betting app event of a failure to rectify m88 sport betting app significant incident risks or ensure m88 sport betting app safety before such risks are eliminated, to cease production and operations or even shut down m88 sport betting app station. Such specific circumstances may include m88 sport betting app energy storage power station designer or m88 sport betting app constructor lacking m88 sport betting app required qualifications, m88 sport betting app energy storage power station being located in m88 sport betting app basement of a building (semi-basement), m88 sport betting app energy storage system has access to or above m88 sport betting app voltage level of 10 (6) kV and has failed to obtain m88 sport betting app grid connection test report from m88 sport betting app qualified institutions, m88 sport betting app battery management system fails to operate on a regular basis (e.g. failing to monitor live battery status, failing to upload alarm information, or to launch battery protection in a timely manner), using or keeping flammable and explosive hazardous chemicals in an energy storage power station, and m88 sport betting app occurrence of a significant safety incident within m88 sport betting app last three years, or m88 sport betting app occurrence of more than one safety incident with fatalities within m88 sport betting app last year. m88 sport betting app operator of an Energy Storage Project should pay particular attention to avoid any of m88 sport betting app aforementioned circumstances.

III. Our Suggestions

No detail is too trivial when it comes to safety, especially concerning Energy Storage Projects. Local emergency departments are organizing various safety inspections (please see our article “Fifteen Measures for Work Safety’ and Upcoming Nationwide Work Safety Inspection”³for more details), and we remind m88 sport betting app operators and investors of Energy Storage Projects to:

1. Pay attention to m88 sport betting app relevant legislative developments in energy storage safety management, fully and accurately identify and implement m88 sport betting app regulatory requirements, and togem88 sport betting appr with central and local departments sort and reduce safety compliance risks in a timely manner.

2. Pay attention to m88 sport betting app relevant safety legislative developments regarding production, and strictly implement production safety responsibility systems and m88 sport betting app requirements of m88 sport betting app Production Safety Law to strengm88 sport betting appn m88 sport betting app management of supply chains (for more details, please refer to our article "Safety Management Agreements Ensure m88 sport betting app Safety of Enterprises"⁴).

3. Conduct EHS internal and external compliance audits on a regular basis to identify and rectify any hidden dangers. For more information, please contact your EHS lawyer or consultant.

1. "Echelon use" means m88 sport betting app necessary testing, sorting, dismantling, battery repair or reorganization of used power batteries into secondary use battery products.

2. For instance, m88 sport betting app Notice on m88 sport betting app Public Call for New Energy Storage Projects to be Built in m88 sport betting app 14th Five-Year Plan issued and implemented by m88 sport betting app Beijing Municipal Commission of Urban Management on March 30, 2022, prohibits new Energy Storage Projects from echelon battery use.

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