China Energy Storage News: Since October, as of October 20, the energy storage sector index has stabilized and recovered, with an overall cumulative increase of 8.17%, outperforming the Shanghai Stock Exchange Index (0.35% during the period). Among them, 100 concept stocks had a cumulative increase of more than 10% during the period, Shijia Technology had the largest cumulative increase during the period, reaching 45.41%. Five concept stocks, including Keyuan Wisdom, Southern Network Technology, Shaangu Power, New Scenery and Tongfei, had a cumulative increase of more than 30% during the period.

Recently, a number of power battery manufacturers continued to order, which helped the energy storage sector to rise. On October 18, Ningde Times announced that it had reached an agreement with Primergy Solar LLC, an American utility and distributed photovoltaic+energy storage development and operator, to exclusively supply batteries for Gemini photovoltaic+energy storage project. The total investment of the project reached 1.2 billion dollars. After the completion of the project, it will become one of the largest photovoltaic energy storage projects in the United States; In September, Nandu Power signed a 380 million yuan energy storage project with Pinggao Group International Engineering Co., Ltd. and Pinggao Group Energy Storage Technology Co., Ltd., which will promote the transformation of the local energy structure of the project.

In this regard, Peng Ronghui, a Rongzhi investment researcher under Paipai.com who was interviewed by the Securities Daily, said that the energy storage industry is expected to usher in a sustained high growth, driven by strong global demand. It is estimated that the scale of the energy storage industry in 2025 will grow more than 10 times compared with that in 2020. On the one hand, as the proportion of new energy becomes higher and higher, the absorption pressure of the power grid will be great. Energy storage is needed to regulate peak load and frequency, so as to improve the absorptivity and economy of new energy power generation; On the other hand, with the technological progress and the falling price of raw materials, the production cost of energy storage is expected to gradually decline, which is conducive to promoting the penetration rate of the energy storage industry.

Against the background of energy shortage, the superposition will soon enter the winter heating peak season, and the energy storage market will usher in accelerated development. Through research and analysis, the European Energy Storage Association found that Europe needs to deploy about 190GW of energy storage systems by 2030. This means that in the next eight years, the scale of the 60GW energy storage system deployed in Europe will increase by more than 200%. For example, Germany is deploying the 250MWNetzbooster (Grid Booster) project, which is known as the largest battery based energy storage project in the world.

In addition, the demand for energy storage in the domestic market continues to be strong. According to the research report of Zhongtai Securities, 36 new energy storage projects in China opened their bids in September, with a total capacity of 6.05GWh, a total power of 2.63GW, and an average bid winning unit price of 2.11 yuan/Wh; In the same period, 44 new energy storage projects were invited for bidding, with a total scale of 12.59GWh.

Huaxi Securities said that the energy storage market will step into a high landscape race track driven by factors such as the continuous deepening of energy transformation and the emergence of the economy of energy storage projects. The iterative updating of technology, the continuous downward exploration of cost, the continuous exploration of business model, and the endogenous growth and exogenous power of the energy storage industry will jointly promote the rapid development of the industry as a whole.

Based on the optimistic prospect of the energy storage market, since this year, Ningde Times, Yiwei Lithium Energy, BYD, Xinwangda and other listed battery enterprises have intensively expanded their capacity, and 10 billion yuan investment projects have emerged frequently. Since this year, more than 20 listed companies have cross-border investment in the energy storage industry.

The performance of listed companies in the energy storage sector continued to improve. The same flush data shows that among the 282 listed companies in the energy storage sector, 158 companies achieved year-on-year growth in net profits attributable to their parent companies in the first half of this year, accounting for nearly 60%. In addition, up to now, six companies have disclosed their performance in the first three quarters of 2022, and five companies have achieved year-on-year growth in net profit attributable to the parent company during the reporting period; In addition, 40 companies disclosed their performance forecasts for the first three quarters of 2022, and 39 companies predicted positive results, accounting for more than 90%.

As for the investment opportunities in the energy storage sector, Chen Li, the chief economist of Sichuan Finance Securities and the director of the research institute, told reporters that due to the impact of the European energy crisis in the past two years, European electricity prices continued to rise, photovoltaic installed capacity and household energy storage market grew rapidly, the industry scale showed a trend of rapid growth, and related enterprises made good profits. Domestically, the construction of the second phase of the Fengguang Base is being continuously promoted. Compared with the first phase, the second phase pays more attention to the integration of "wind and solar energy storage" and has higher requirements for supporting energy storage. Therefore, since this year, the number and scale of domestic new energy storage projects have steadily increased. The industry scale is expected to enter the rapid release stage, thus achieving profit growth. The related targets have high configuration value.