Visual China.
A few days ago, Jiewei Power, a veteran power battery company, planned to invest in the construction of Jiewei Power Energy Storage System Integrated Production Base Project, and formally signed a framework agreement with Suihua Economic Development Zone to make useful explorations for new power with new energy as the main body. This signing is regarded as an important layout for Jiewei Power to transform its energy storage business. In fact, with the continuous deepening of the "dual carbon" strategy, battery companies have become the main theme of the industry to make efforts or switch to "energy storage".
In the context of mature technology and safe and reliable wind and solar energy becoming the key energy types in China, energy storage, as a key means to stabilize the fluctuation of clean energy power generation and improve the absorption capacity of the system, has a large-scale application prospect. Wu Zhen, deputy director of the Technology Innovation Department of the Electric Power Planning and Design Institute, pointed out that in the process of photovoltaic power generation, there will be curtailment of light, resulting in a waste of electric energy, and energy storage equipment can store the abandoned electricity, so as to improve the absorption and transportation capacity of new energy power.
In the first half of the year, China's new energy storage installed capacity has been equivalent to the cumulative total of previous years", according to Li Boyang, director of the Consumer Goods Industry Research Institute of CCID Research Institute of the Ministry of Industry and Information Technology, as of the end of June 2023, the cumulative installed capacity of new energy storage has been completed and put into operation in the country 173 GW, of which from January to June this year, China's newly put into operation installed capacity is about 86 GW.
Under the huge market opportunity, many battery companies have launched layouts, trying to occupy a position in the blue ocean market of new energy storage.
Jiewei Power has been moving continuously this year. According to the framework agreement signed with the Suihua Economic and Technological Development Zone, the two parties will build a grid-friendly clean energy multi-energy complementary demonstration project through the integration and interaction of wind, solar, storage and manufacturing.
In April this year, Jiewei Power also signed a framework agreement with China Nuclear Energy and Shandong High-speed to serve as the 1The 5GWh energy storage project provides energy storage equipment. In addition, it is understood that Jiewei Power is also promoting the production capacity of energy storage cells located in Huzhou Changxing base, and it is expected to achieve a rapid release of production capacity next year.
The transformation of battery companies such as Jiewei Power into energy storage will face a trillion-level market. According to the Zhongguancun Energy Storage Industry Technology Alliance, by 2027, the cumulative scale of new energy storage led by lithium batteries will reach 970GW, with a compound growth rate of nearly 50% from 2023 to 2027;According to the starting point of lithium battery**, by 2025, the global energy storage market space will exceed one trillion.
The performance of leading battery companies in the energy storage business this year also confirms the broad space for energy storage. In the first half of 2023, CATL's energy storage battery system business revenue will increase by 119 year-on-year73%, gross margin increased by 14% year-on-year89%, more than 531%ï¼›Sunwoda's energy storage system business also recorded 15206% year-on-year growth.
For lithium battery companies, the potential of energy storage battery business as the second growth curve has emerged. In fact, battery companies also have inherent advantages in transforming the energy storage market. Taking Jiewei Power as an example, due to the overlap in the first chain, technical foundation, talents, etc., it can quickly realize the transformation, research and development, and production of products that meet market demand.
In fact, as early as 2018, Jiewei Power has launched an arms race in the energy storage industry, developed core technologies and serialized products such as energy storage cell, energy storage BMS, and energy storage BESS with independent intellectual property rights, and launched a new system solution for energy storage in 2022 - "sponge system", with an energy density of more than 195wh kg. In May this year, Jiewei Power unveiled CIBF2023 with its 4 energy storage cells, 1 energy storage subrack, and 1 energy storage DC side system, which received wide attention from the market and was regarded as its "fist" product to accelerate its entry into the energy storage market.
In addition to the historic market opportunities and product technology accumulation, the promotion of policies is also a major benefit for battery companies to transform energy storage. According to incomplete statistics, from January to October this year, more than 400 policies and plans were introduced across the country to promote the development of the lithium battery energy storage industry, involving electricity prices and market transactions, energy storage subsidies, new energy distribution and storage, and other aspects. Huzhou, where Jiewei Power's Changxing base is located, also issued the "Implementation Opinions on the Development of Energy Storage and Hydrogen Energy Industry in Huzhou City (2023-2027)" in November, pointing out that it is necessary to promote the development of "specialized, special and new" energy storage enterprises, and promote a number of energy storage enterprises with competitive advantages, good growth and key core technologies in the market segment to take a professional development path.
It is foreseeable that with the implementation of the new energy distribution and storage policy and the gradual improvement of the electricity spot market, the rapid release of new energy storage market demand, driven by the rapid growth of major market demand in Europe, North America, China and other major markets, the scale of energy storage battery shipments will reach a new high, and the industry will also usher in large-scale expansion. Old battery companies such as Jiewei Power may open a new chapter in energy storage and usher in a new growth curve. (This article was first published in the titanium **app).