Foreword Grid-forming technologies have historically enabled microgrids to operate as islanded, self-contained energy systems and to leadthe way in integrating very high shares of variable renewable energy (VRE). At Energy-Storage.news, which launched in 2014, we have written about grid-forming for more than 10 years in this context.Recognition that thermal generation could be used primarily for backup, if at all, and not to run continuously to actively stabilisethe grid, became a reality at megawatt-scale on remote islands and industrial facilities. Gradually, that recognition has spread. Regulators and systems planners are becoming acutely aware that this new paradigm ofgrid-forming (GFM) versus grid-following (GFL) plays a significant role in setting the voltage and frequency of electricity networks. GFM has been written into codes and requirements first in regions where the need has been the most urgent and immediate dueto renewable energy adoption rates on relatively ‘weak’ grids, or grids without major interconnection to other regions, such asAustralia or Texas. However, anywhere that thermal generation is retiring, for policy, economic, or technical reasons, we must replace not just theenergy it provides, but also the inertia, short-circuit ratio (SCR), voltage control and even black start capabilities that grids havealso relied on the rotating mass of spinning turbines for decades. For instance, in considering the coming decades of power sector modernisation and the rise of inverter-based resources suchas solar PV and wind, ENTSO-E, the European transmission system operators’ network, has already published draft technicalrequirements for adding GFM resources to large-scale renewable and energy storage projects. The regulatory and market mechanisms for implementing grid-forming will vary from region to region. Germany recently begana support scheme, the Australian Energy Market Operator (AEMO) has made GFM battery storage a priority for the NationalElectricity Market (NEM) and South West Interconnected System (SWIS), while in other territories, Hawaiian Electric has made Whichever way regulators and system operators decide to go, grid-forming is coming, and developers and technology providersneed to be ready. That is why, we are very proud to present to you this white paper, authored by sponsor Kehua Digital Energy and technicallyverified by TÜV Rheinland. Ahead of presenting Kehua’s GFM energy storage system, the authors offer a detailed technicaloverview of the drivers, principles, and value of grid-forming technology. Contents Enhancing system stabilitythrough grid-forming energy 1. PrefaceA The large-scale displacement of synchronous generatorsby renewable energy sources has caused a sharp decline of an optional capability and more of a critical requirement forinverter-based resources. In short, the market will shift toward agreater proportion of grid-forming (GFM) battery energy storagesystems (BESS) that provide system stability. In response tothis trend, Kehua Digital Energy presents the Grid-FormingEnergy Storage Solution, suitable for all scenarios and Frequency:In multiple regions, the rate of change of frequency(RoCoF) far exceeds EU-mandated thresholds. During middayhours, solar-dominated grids are susceptible to “inertia vacuum” Voltage:Renewable-rich areas exhibit extremely low SCRvalues, resulting in insufficient voltage support and an elevated The spatial distribution of renewable energy, load, andsynchronous units across Europe is highly mismatched.Construction of cross-regional transmission channels lagsbehind demand, creating severe power transfer bottlenecks.Curtailment rates also vary markedly by region: In 2025, 2. Pain Points and Challenges Faced by theEuropean Grid energy sources (wind power and solar photovoltaics) anddistributed generation has become fundamentally incompatiblewith the legacy grid architecture dominated by centralised newly installed generation assets to be equipped with We can summarise the above three issues with the following: •Inadequate weak-grid adaptability of conventionalgrid-following inverters: GFL inverters are highlysusceptible to disconnection under low-SCR conditions. •Insufficient frequency modulation and transient overvoltagesuppression: Wind power and PV variability intensify •Structural lack of system black start capability: Grid-formingtechnology has become the core pathway adopted byEuropean countries to address the ‘black start challenge’in renewable energy-dominated scenarios. Renewable energy curtailment rates across Europe(schematic diagram)[2] 3. Fundamental Principles and Value ofGrid-Forming Control Technology Extremely Low SCR and Inadequate WeakGrid Adaptability — Full-scale Deployment of 3.1. Background and Fundamental Principles of The legacy European grid architecture suffers from three coredeficiencies: inadequate weak-grid adaptability of conventionalgrid-following (GFL) inverters, insufficient fr