Leading energy storage companies in the industry chain set sail

Energy storage battery competition tests technology and cost control

Cost is one of the core competitive elements of energy storage cell factories

Lithium battery energy storage system is mainly composed of battery pack, energy storage converter (PCS), battery management system (BMS), energy management system (EMS) and other electrical equipment. Among them, the cost of battery pack accounts for nearly 60%, PCS accounts for 10-20%, and other costs account for about 20-30%. The main energy storage products are 12v lithium ion battery and 48v lithium ion battery.

Compared with electric vehicles for vehicles, energy storage batteries have lower requirements for energy density and slightly lower material performance requirements. Energy storage batteries have high requirements on battery cycle life. If energy storage power stations and household energy storage are charged and discharged at a frequency of once a day, the cycle life requirement needs to be greater than 3500 times, and the discharge frequency needs to be increased to more than 5000 times.

The current cycle life of lithium iron phosphate batteries is generally more than 2000 times, and batteries with high cycle life will become the development trend in the future.
potential.

In 2021, the price of the system will be around 1.3-1.7 RMB. With the advancement of technology and the expansion of raw material production, the cost of energy storage batteries is expected to gradually decrease. According to the statistics of the Polaris energy storage network system, the average price of the winning energy storage project in 2021 is 1.476 RMB/Wh, of which the highest price is 1.674 RMB/Wh, and the lowest price is 1.31 RMB/Wh.

Based on the increase in upstream raw material prices in 2021, the cost of energy storage systems will increase slightly compared with 2020. It is expected that when the expansion of upstream raw material production is implemented, the cost of energy storage system is expected to decrease due to the combination of factors such as the decline in raw material prices, the reduction in material consumption rate, and the increase in the proportion of independent brands.

Developers on the grid side, power generation side, and communication side have greater bargaining power, rising lithium source costs, and increased cost pressure on energy storage cell manufacturers, and leading manufacturers are more profitable.

China’s large energy storage integrators have a strong voice in the energy storage industry chain. Since the second half of 2021, the prices of raw materials such as lithium carbonate have risen rapidly, and battery costs have increased. Profits are under pressure.

However, leading battery manufacturers such as CATL still enjoy a gross profit margin of over 30% for energy storage products due to the scale effect and the material cost advantage brought by the upstream layout.

Leading battery cell manufacturers actively seize the energy storage market

In 2021, with the support of energy storage requirements proposed in the development plans of new energy projects in various places, the market demand for energy storage will expand rapidly. The data shows that in 2021, the total shipments of lithium battery energy storage in China will be 37GWh, a year-on-year increase of 128.4%.

Among them, electric energy storage accounts for 47%, communication energy storage accounts for 33%, household energy storage accounts for 15%, and portable energy storage accounts for 3%.

From the perspective of gross profit margin of the system, portable energy storage > home energy storage > electric energy storage > communication energy storage. Among them, the gross profit margin of portable energy storage systems can reach up to 45%-50%, which is mainly related to industry demand. However, the gross profit margin of the communication energy storage system is only 15%-20%, and the price competition is more intense.

From the perspective of competition factors, factors such as product consistency, price, safety, lifespan, channels, brands and service capabilities will become the keys for lithium battery companies to compete in the energy storage market.

In the past, the global energy storage battery market was mainly dominated by Korean manufacturers, and Chinese enterprises gradually occupied a larger market share. Japanese and Korean battery companies are ahead of Chinese companies in internationalization. In 2019, South Korea’s SDI and LG’s market share in the global energy storage battery market once exceeded 60%.

With the acceleration of the business layout process of Chinese energy storage battery manufacturers and the prominent cost advantage of energy storage systems, China’s market share in the global energy storage battery market continues to expand. In 2020, the market share of the top two Korean companies will drop to about 55%, and the market share of energy storage batteries in CATL will increase to 14%.

The leading CATL energy storage field has an early layout and high income. As a leading lithium battery company in China, CATL began to deploy the energy storage industry in 2011 and participated in the wind and solar energy storage and transmission demonstration project of Hebei Zhangbei State Grid.

In 2016, he participated in the user-side commercial energy storage charging project of Beijing International Trade Building and the Qinghai Golmud commercial energy storage project; in 2019, the company and Nebula Co., Ltd. established Times Nebula, which involved R&D and production of BMS for energy storage, system integration, etc., and then the company jointly established A number of energy storage-related subsidiaries have been established.

In 2020, the proportion of energy storage business revenue of CATL continues to rise. CATL not only maintains the first place in the field of power batteries, but also the shipment volume of energy storage batteries in 2020 exceeded 2.8GWh, ranking third in the world and first in China. In 2021, CATL’s energy storage battery shipments are expected to be between 15-20GWh.

In 2021, CATL will focus on implementing several large-scale projects. In June 2021, the Fujian gigawatt-scale Ningde Xiapu energy storage project jointly invested by State Grid Comprehensive Energy and Ningde Times officially started. The total investment of the project is 900 million RMB and the total scale is 400MWh.

In July, the State Grid Times Huadian Datong 300MW/600MWh energy storage project, jointly invested and constructed by CATL, State Grid Comprehensive Energy and Huadian Corporation, officially started construction, achieving a leap from 100MWh to 600MWh.

From the power generation side, the grid side to the user side, CATL has successfully participated in a number of energy storage projects in power generation, transmission, distribution and use. On the power generation side, CATL provides a new solution for the safe operation of new energy stations and the consumption of new energy power.

On the power grid side, the CATL energy storage system has realized various functions, improved the flexibility of the power grid, and realized the safe, stable, efficient and low-cost operation of the power grid.

In terms of power-side energy storage, CATL’s energy storage products have been successfully applied in large-scale industrial, commercial and residential fields, and have been extended to emerging applications such as backup power for communication base stations, UPS backup power, island microgrids, and smart charging stations for optical storage, charging, and inspection. Use of energy to achieve social and economic benefits.

BYD has developed a full-scenario energy storage model and adopted new technologies to increase installed capacity. As the first leading enterprise to enter the battery energy storage field, BYD provides nearly 100 industrial-grade energy storage solutions for global partners. It has created a record of 0 safety accidents in 13 years, and has realized from the research and development of energy storage core technology to commercial promotion and application in various scenarios around the world.

At the same time, BYD exhibited BYD Cube T28, a new generation of energy storage products, to achieve independent control of new energy storage core technologies and lead China’s new energy storage technologies and standards. The product covers an area of 16.66 square meters and has a capacity of 2.8MWh. The area energy density is 90% higher than that of an ordinary 40-foot air-cooled energy storage container.

Penghui Energy’s energy storage business has grown rapidly and capacity construction has accelerated. Judging from the 2020 and 2021 performance reports, the company continues to explore the energy storage market. As of November 2021, the revenue of Penghui Energy’s energy storage business has increased by as much as 28%.

The energy storage business has now developed into a major highlight of the company. In the past, communication energy storage was the mainstay. Currently, revenue from overseas home storage, portable energy storage and photovoltaic energy storage has increased significantly. In terms of production capacity, the company plans to invest 6 billion RMB to build a Penghui smart energy storage and power battery manufacturing base in the Northern Ecological New District of Liuzhou City, Guangxi Province.

The main layout is for lithium battery cells and PACK production lines. The overall planned production capacity of the project is 20GWh, the first phase construction capacity is 2GWh, and the second phase construction capacity is 2GWh.

The order volume is abundant, and Penghui Energy has comprehensively expanded high-quality customers at home and abroad. The company has won large orders such as Sungrow, Trina Solar, China Mobile communication base station energy storage battery project and China Tower 2020 backup power lithium iron phosphate battery pack products intensive e-commerce procurement project, etc.

There are ample orders from China. In other countries, the company has obtained qualification certifications in Europe and Australia for its outstanding product performance, and has obtained orders for more than 50,000 home storage products.

Paineng Technology is positioned as a supplier of lithium battery systems, and its main business is energy storage lithium battery packs and energy management systems. The company’s products are mainly concentrated in the field of household energy storage, and the products are mainly exported to Europe, the United States, Japan, South Korea, Australia and other countries and regions, and have formed a certain brand effect in the corresponding market. Production capacity continues to expand, and its production capacity will exceed 3GWh by the end of 2021.

Pineenergy’s household energy storage products have excellent performance. The capacity of lithium iron phosphate soft pack energy storage battery cells in the laboratory can reach 8000mA-14000mA, with a warranty of 7-15 years, and it is also the largest energy storage battery company in order to obtain certification, and can produce a full range of 5V-1500V products.

China’s leading energy storage companies strengthen cooperation with global companies and governments. Among them, CATL will cooperate with a number of companies in 2020 and 2021 to help the development of power generation side, power grid measurement and power side energy storage business. EVE has cooperated with the governments of Chengdu and Jingmen to plan an investment of more than 31 billion RMB.

Sodium battery is expected to become one of the mainstream electrochemical energy storage methods in the future

In recent years, energy storage technology has continued to develop in the commercial demonstration stage, and has shown certain economics in some fields. In addition to lithium batteries in electrochemical energy storage, sodium batteries are expected to be the mainstream electrochemical energy storage methods in the future due to their low-cost advantages.

Studies have shown that when the sodium battery industry chain is mature and large-scale production, the cost of copper-based sodium-ion batteries is 0.29 RMB/Wh, the cost of lithium iron phosphate batteries is 0.43 RMB/Wh, and the cost of sodium-ion batteries after industrialization is lower than that of lithium iron phosphate batteries. 30%.

FARADION in the UK has shown that it is even possible to manufacture sodium-ion batteries on existing lithium-ion battery production lines, thanks to a similar production line and manufacturing process to lithium-ion batteries.

High quality requirements for energy storage converters

The cost of energy storage converters accounts for 10%-20%, second only to battery packs (60%).

The energy storage converter is a power conversion device connected between the energy storage battery and the AC grid. It can not only meet the inversion requirements of traditional grid-connected converters for converting direct current to alternating current, but also meet the bidirectional conversion requirements brought by the “charge + discharge” of the energy storage system. It has the function of charging and discharging batteries, and can be used for photovoltaic, Wind power generation power smoothing, peak shaving and valley filling, micro grid and other occasions.

The energy storage converter determines the quality and characteristics of the output power, which greatly affects the life of the battery. PCS is an important component in the energy storage system. It consists of software and hardware such as power, control, protection, and monitoring. Its main functions include power stabilization, information exchange, integration of charge and discharge with BMS system, and on-grid/off-grid operation.

At present, the gross profit margin of energy storage converters is higher than that of photovoltaic inverters. Since energy storage converter products and photovoltaic inverters can be produced on the same line, along with the gradual increase in the sales proportion of energy storage converter products, it will help converter manufacturers to increase their profits.

Sungrow has a significant first-mover advantage

As one of the earliest companies in China to enter the energy storage field, Sungrow is currently the world’s most experienced supplier of energy storage equipment and system solutions.

The company can provide energy storage core equipment such as energy storage converters, lithium battery modules, energy management systems, etc. The energy storage products are widely used in China, the United States, the United Kingdom, Canada, Germany, Japan, Australia, India and many other countries. In 2020, the company’s energy storage converter revenue reached 1.169 billion RMB, a year-on-year increase of 115.3%.

For the fifth year in a row, it ranked first among energy storage converter manufacturers and system integrators. In 2020, Sungrow’s energy storage converter and system integration market shipments will both rank first in China. At the same time, it is also the champion of Chinese energy storage companies going overseas, and Sungrow has ranked first in the list of energy storage system integrators for the fifth consecutive year.

Independent research and development layout of the entire industry chain, maximize the use of channel advantages. The energy storage system has very high requirements on safety and reliability. The company has been developing energy storage business since 2014. Deep coupling integration technology between PACK, PCS, EMS, and BMS (all independently developed) has been formed to ensure the safe operation of the entire energy storage system and meet the needs of various application scenarios.

In addition, the company has the advantage of customer synergy. The global converter customers and energy storage customers overlap, which will help the company’s energy storage business to develop rapidly. At present, Sungrow has launched 5~10kW/9.6~102.4kWh home energy storage system and 50kW~1MW/2~5h distributed energy storage system, and has provided overall solutions for many energy storage projects.

The company expanded its production capacity with the growth of the industry and maintained a high capacity utilization rate. With the continuous development of the new energy industry, the market demand for energy storage systems continues to expand. In 2020, the company’s energy storage converter capacity will be 300MW,

The company is actively carrying out production capacity layout. It is expected that the company’s energy storage converter production capacity will increase to 9.9GW in 2022, an increase of about 32 times compared with 2020 production capacity, which will effectively guarantee the company’s energy storage converter business development.

Goodwe is the global leader in household converters

Goodwe’s photovoltaic energy storage converters are mainly aimed at the small household market, in order to reduce users’ dependence on the grid and traditional energy sources and achieve self-sufficiency in household electricity.

In 2020, Goodwe’s shipments of energy storage converters are about 22,300 units, with operating income reaching 159 million RMB, a year-on-year increase of 47%, and business income accounting for about 9.99%. Goodwe’s household energy storage converters account for over 15% of the market, ranking first in the world.

In addition, as the company’s energy storage products are mostly sold to other countries, the gross profit margin is significantly better than that of its peers by about 10~30pct.

Actively develop new products to meet the needs of various types of customers. The first energy storage converter was developed in 2014, and the ES series single-phase photovoltaic energy storage hybrid converter was launched in 2015.

Since then, the series of energy storage products have been continuously enriched, and series of products such as EM series single-phase photovoltaic energy storage hybrid converters and GW50K-BTC three-phase AC-coupled converters have been launched successively.

Continue to promote the product development and system solution design of industrial and commercial energy storage and other forms of energy storage systems to fully meet the needs of various types of customers in the field of photovoltaic new energy.

Goodwe gradually increased investment in energy storage research and development, and actively expanded the energy storage market. The company’s energy storage converter products have been sold to many countries and regions around the world, and the market area is constantly expanding. The shipment volume in 2021H1 is about 21,000 units, accounting for about 8.81%.

The company is now actively promoting the R&D project of intelligent household single-phase photovoltaic energy storage hybrid converters. With the rapid growth of the company’s R&D investment and the gradual enrichment of energy storage products, the company’s energy storage business will develop rapidly in the future.

The rapid expansion of Ginlong energy storage converter business

In 2021, the company’s inverter product revenue will increase. Relying on the accumulation and advantages of inverter R&D technology for many years, the company has successfully developed and introduced mature energy storage inverter products to the market.

Currently in the stage of “in the early stage of commercialization to large-scale development”, benefiting from the rapid development of the household energy storage market, the company’s energy storage converter in 2020 achieved operating income of 37 million RMB, accounting for about 1.79% of business income, a year-on-year increase of 115.4% %.

In 2021, the company’s energy storage business will develop rapidly. In the first half of the year, the revenue will reach 66 million RMB, a year-on-year increase of over 640%, and the revenue share will rise to 4.57%.

The company’s products are mainly sold to various markets. Relying on its own converter technology, the company has taken the lead in independently developing a variety of distributed grid-connected energy storage converters. The single-unit power of existing energy storage products is mostly concentrated in 3KW~10KW, which can provide low-voltage energy storage, high-voltage energy storage, AC coupling Energy storage application solutions for various application scenarios.

At present, most of the company’s energy storage converter shipments are in Europe, Australia, the United States and other overseas regions, and it is also gradually deploying in the Japanese and Korean markets. The company’s energy storage converter business will also accelerate the release of energy storage demand.

After the expansion of the new project, the energy storage converter business is the focus of this stage. The company actively expands the production capacity of energy storage converters. In 2020, the company plans to increase 350 million RMB to invest in the “annual output of 400,000 units of string-connected grid-connected and new energy storage converter projects”.

After full production, the annual production capacity of energy storage converters will increase by 100,000 units, which will help the company to improve the production efficiency and product quality of energy storage converters, reduce production costs, and meet the needs of large-scale promotion of energy storage converters in the future. Bringing more than 530 million operating income to the company.

Deye micro-Inverter track leader

The micro-converter business is developing rapidly. As a rookie of photovoltaic inverters, the company’s existing products include micro converters, string converters, energy storage converters and other types. At present, the company’s converters have been sold to Brazil, South Africa, the United States, India, Poland, Pakistan and more than 40 countries and regions.

The high gross profit of energy storage converters also makes them a key product of the company. In 2021 H1, the company’s converter business achieved revenue of 379 million RMB, of which the sales revenue of energy storage converters was about 180 million RMB, an increase of 285.62% over the same period, and the product sales volume was about 26,200 units.

The company’s products are mainly low-power household converters. The company’s energy storage converter products mainly include 3.6-5kW, 5-8kW single-phase converters, and 8-12kW three-phase converters, which are mostly used in household energy storage scenarios to reduce customers’ electricity bills and carbon emissions.

At present, the company continues to increase technology development and independent innovation, and actively promotes the research and development of energy storage three-phase 10KW low-voltage converters, which is conducive to enriching the company’s energy storage product types to meet the needs of different customers.

The company’s core strengths lie in the fast switching speed between on-grid and off-grid, many parallel-connected machines, and the intelligent AC-coupling function to facilitate the upgrade of grid-connected systems.

The company’s energy storage converter products have 4ms automatic switching between on-grid and off-grid to ensure uninterrupted power for key loads, and the switching time is much lower than that of the industry.

The frequency droop control algorithm can make the maximum number of machines in parallel up to 16, and can also cover the needs of small industrial and commercial energy storage scenarios, which can not only reduce the installation cost of downstream customers, but also improve system stability.

With the intelligent AC coupling function, the existing grid-connected system can be easily upgraded, and the grid utilization rate can be improved. It has the characteristics of high charging efficiency, safety and reliability.

At present, the company’s energy storage products are mainly sold to the United States, South Africa and Pakistan and other markets. The high growth rate of the household energy storage market in the United States and other places will help the company’s energy storage business to grow.

Hello Tech focuses on portable energy storage products

As an industry-leading portable energy storage brand enterprise, the company’s energy storage products can be used in outdoor travel, emergency disaster preparedness and other scenarios to meet customers’ diverse portable power needs.

In 2021H1, the company’s portable energy storage products achieved revenue of 776 million RMB, with an average annual compound growth rate of about 273%, and business revenue accounted for 81.3%.

Due to the advantages of large capacity, high power, safety and portability of portable energy storage products, its sales have risen sharply, and the number of units sold in 2021H1 has exceeded 288,000 units. With the rapid increase in the penetration rate of portable energy storage products.

The company attaches great importance to R&D and innovation, and the portable energy storage products are constantly iteratively upgraded, and the proportion of sales of high-capacity products has increased year by year.

Affected by the rising prices of raw materials, the prices of some products have increased to a certain extent. In 2021H1, the sales volume of portable energy storage products with a capacity of ≥1000Wh increased. Due to the higher unit price of products in the high-capacity segment, the revenue ratio also increased from 1.45% in 2019 to 51.33% in 2021H1.

In addition, in general, the overseas gross profit margin of the company’s main products is about 5~20pct higher than the domestic gross profit margin, and the proportion of the company’s overseas sales in 2021H1 will further increase to 93.3%.

With the expansion of the company’s portable energy storage product types, the continuous improvement of brand awareness, and the improvement of online and offline sales channels, the company has officially entered the fast lane of development. It has been sold in China, the United States, Japan, the United Kingdom, Germany, Canada and other countries around the world.

At the same time, the company is actively carrying out production capacity layout. In 2021H1, the theoretical production capacity of the company’s main products will reach 331,700 units. Affected by the increase in customer demand, the capacity utilization rate will exceed 109.7%.

In addition, the company plans to raise 198 million RMB for the “portable energy storage product expansion project”, which will help further increase the market share of the company’s products and consolidate the company’s leading position in the portable energy storage industry.

Energy storage system integration

Energy storage system integration enterprises need to have rich project practical experience and diverse technical reserves. Energy storage system integration means that system integrators design corresponding energy storage systems according to different terminal application scenarios of energy storage and different customer needs.

That is, according to specific needs, the appropriate components and software such as battery, BMS, PCS, EMS, etc. are integrated into a whole to ensure stable and efficient operation under specific working conditions. The business is extensive and complex, involving electrochemistry, power electronics, IT technology, power grid dispatching and other fields.

Among the top energy storage system integrators in terms of installed capacity in China, in addition to Sungrow and Hyperstron, they are mainly companies from the power industry. Energy storage system integrators mainly include the following categories:

One is from battery companies, including CATL, BYD, Tesla, etc. Their advantage is that they have rich experience in battery design and manufacturing, and can manufacture suitable battery packs and corresponding BMS systems, which can effectively reduce costs through integration;

One is from the photovoltaic industry, including Sungrow, etc. Their advantage lies in the migration of their accumulated experience in the photovoltaic industry, established sales and service systems to the energy storage system, which is convenient for business expansion; the other is from the power industry, such as NARI, China Tian, Xuji, etc., their advantage is to better understand the operation characteristics of the power grid.

The last category is companies that focus on energy storage system integration, such as Paine Energy Technology, Hyperstron, etc. The advantages of such companies are rich experience in product and project implementation, and mature development solutions.

NARI is good at energy storage control

Founded in 2001, Guodian NARI is the first listed company within the State Grid system. Guodian NARI is a leading enterprise in the field of energy and power intelligence and industrial control in China. In the first half of 2021, it achieved revenue of 14.8 billion, a year-on-year increase of 22%, and net profit attributable to the parent of 1.84 billion, a year-on-year increase of 34%.

The main businesses include power grid automation and industrial control (50.65%), relay protection and flexible power transmission (18.69%), power automation information communication (18.45%), environmental protection (7.05%) and integration (5.16%) five business segments.

Shanchang energy storage control is expected to become a well-known energy storage system solution provider in the industry. At present, the proportion of Guodian NARI’s energy storage business is still relatively low, less than 5%, and its energy storage business development platform is Nanjing NARI Jibao Electric Co., Ltd.

Relying on the core technology in the field of power grid control and protection, NARI has the industry-leading energy storage converter, control technology and system integration technology, energy storage converter (PCS), energy storage coordination controller (PMS), energy management System (EMS) and other core equipment are independently developed.

According to the statistics of Zhongguancun Energy Storage Alliance, among the new electrochemical energy storage projects put into operation in China in 2020, NARI’s Jibao energy storage converters ranked 5th, 9th in power scale, and 10th in energy scale.

In recent years, NARI’s energy storage solutions have been successfully applied in Japan, Switzerland, India, Thailand, the Philippines and other international energy storage markets. On July 23, 2021, the “Guiding Opinions on Accelerating the Development of New Energy Storage” “allows the cost of grid alternative energy storage facilities to be included in the transmission and distribution price recovery”, which will help Guodian NARI obtain grid-side energy storage orders.

Linyang cooperates with leading battery companies and strategically deploys energy storage business

The company is mainly engaged in three business sectors: intelligence, new energy, and energy storage.
(1) The main products of the smart sector cover smart meters, electricity information collection terminals, low-voltage smart circuit breakers, etc.

(2) The main business of the new energy sector is the development, investment, design, construction, operation and service of various photovoltaic power stations, including large, medium and small industrial and commercial rooftop power stations, ground photovoltaic power stations, photovoltaic building integration, light charging and storage microgrids, etc.

(3) The company has been involved in the energy storage business since 2015. In 2021, the company will take energy storage as one of the three major business sectors for the company’s future development.

The main business of the company’s energy storage sector is to provide integrated and targeted energy storage products and system integration around application scenarios such as new energy power generation supporting energy storage, user-side energy storage, user-side optical storage systems, and peak and frequency modulation energy storage systems. solution.

Products include battery management systems (BMS), energy storage battery packs and battery clusters (Pack and Rack), energy storage battery storage systems, energy storage converters (PCS), energy management systems (EMS), temperature and fire control systems, etc. core technologies and products.

In the first three quarters of 2021, the company achieved revenue of 4.124 billion yuan, a year-on-year growth rate of -6.65%; realized a net profit attributable to the parent of 846 million yuan, a year-on-year growth rate of 9.59%. The year-on-year decrease in revenue and profit was mainly due to the decrease in overseas electricity meter sales revenue.

Cooperate with leading enterprises to strategically deploy the energy storage field.
(1) In September 2020, the company and Hubei EVE Power Co., Ltd. jointly invested and established Jiangsu Linyang Yiwei Energy Storage Technology Co., Ltd., the company holds 85% of the equity, and the subsidiary focuses on energy storage system integration.

(2) In June 2021, the company and Hubei EVE Power Co., Ltd. jointly invested in the establishment of Jiangsu EVE Linyang Energy Storage Technology Co., Ltd. The company holds 35% of the equity and invests 3 billion yuan to build a dedicated energy storage facility with an annual capacity of 10GWh Lithium iron phosphate battery production base project, the project has started construction and is expected to be put into production in 2022.

(3) The company signed a strategic cooperation framework agreement with Huawei Digital Energy Technology Co., Ltd. to cooperate in the research and development of innovative large-scale lithium-ion energy storage related products and system solutions, and jointly create energy storage system solutions based on lithium iron phosphate energy storage batteries .

(4) Linyang Energy and Jiangsu Huaneng signed an investment cooperation framework agreement. The two parties will build a 80MW/160MWh energy storage shared power station in Qidong through the establishment of a joint venture company. It is expected to be fully connected to the grid before June 30, 2022.

(5) In the framework of the agreement recently signed between Linyang and Beitou Energy, in order to cooperate with the construction of new energy and the measurement of energy storage by users, the two parties plan to jointly develop a 500MW/1GWh lithium iron phosphate energy storage project.

The company and the industry leaders have deepened cooperation and complementary advantages in the entire energy storage industry chain, and built the company’s core competitiveness in energy storage cells and system integration. It is expected to accelerate the company’s business expansion in the energy storage field and create a new Seize the opportunity in the round of growth.

Hyper strong focuses on energy storage system integration

Founded in 2011, Beijing Hyperstrong Technology Co., Ltd. is a leading power battery and energy storage system integrator in China.

The company mainly purchases batteries, energy storage converters (PCS) and other equipment from suppliers, performs system integration, and sells standardized energy storage systems to end users. Current products include energy storage systems, power battery systems, battery management systems and remote data monitoring platforms.

Hypertron is an industry leader in the energy storage business. Relying on the in-depth cooperation with Dongfeng Group and the experience in power battery system integration, Hyperstron has advantages in battery testing, energy storage system battery pack design and battery management.

The Hyperstrong energy storage system has a long cycle life (more than 6000 times), and the product is cost-effective; the power storage system can achieve high-rate 2C charge and discharge, fast response, and wide application scenarios.

According to the statistics of Zhongguancun Energy Storage Alliance, among the new electrochemical energy storage projects put into operation in China in 2020, Hyperstrong ranks second in power scale (about 240MW), second only to Sungrow; energy scale ranks first (about 330MWh) ), slightly higher than Sungrow.

The 2021 listing is expected to be confirmed. Hyperstron has conducted multiple rounds of financing since 2012, and has introduced many investors such as IDG, Tus Ventures, Qiming Investment, Wuyuefeng, and Huaneng.

AlphaESS focuses on residential and industrial and commercial energy storage markets

Founded in September 2012, AlphaESS is committed to the research and development and production of technologies such as photovoltaic energy storage, energy management, power storage, lithium battery management and energy storage data cloud platform.

The products have covered many application fields such as household, commercial, large-scale industrial and commercial, off-grid, micro-grid, distribution and sales of electricity.

At present, it has developed into a leading company in the distributed energy storage market segment. The fourth-generation household energy storage system developed by the company has been listed in Germany and has been well received.

The company’s R&D technical advantages are reflected in: First, to ensure the long-term stable and efficient operation of the energy management system EMS in the home power supply, and the ability to generate and supply electricity by itself is strong.

The second is to ensure at least 10 years of service life on the basis of meeting the charge and discharge of the home battery management system BMS dozens of times a day.

In 2016, the company invested tens of millions of RMB to develop 50-200kW medium-sized and 250kw-10MW large-scale industrial and commercial energy storage systems, extending the products to the industrial and commercial fields.

At present, the products range from 3kW household energy storage to MW-level large-scale energy storage containers. The product line is complete, covering the household and industrial and commercial fields to meet the needs of users in different scenarios.

It has taken the lead in the household energy storage market in other countries and has established a brand advantage. At the beginning of its establishment, the company aimed at the overseas household energy storage market. In 2015, it set up subsidiaries in Germany and Australia and formed a sales network.

At the European Solar Energy Exhibition held in Munich, Germany in 2015, the company became the only Chinese company nominated for the New Energy Home Energy Storage System (ESS) award, and was selected as one of the top ten energy storage companies in the world.

The company has successively established 8 wholly-owned subsidiaries in Germany, Australia, Italy, the United Kingdom, Singapore, South Korea, Japan, and the United States, expanding its business to more than 70 countries and regions around the world, and installing over 60,000 sets of energy storage systems.

Develop a smart energy management system and transform into a comprehensive service provider of household energy storage systems. In 2019, the company launched the smart energy management system “Alpha Home”, which is a smart energy management system that integrates IoT devices into the cloud of the energy storage system and is controlled by voice, marking the company’s entry into the field of machine interaction and smart home.

Every SMILE system in the company can control IoT devices through the cloud platform. Even if the home devices are not IoT capable, Alpha Home provides more than 2 non-IoT device connectivity options. In the context of the accelerated development of distributed photovoltaics and household energy storage, comprehensive energy service models are emerging.

On the basis of providing integrated energy storage solutions for households, industry and commerce, the company regards “Intelligent Connected New Energy” as its vision, and actively explores the gradual transformation from a product manufacturer of photovoltaic systems and energy storage systems to a service provider of energy Internet.

Extension of energy storage industry chain – high concentration of market segments

Baoguang added energy storage and frequency regulation business

Vacuum interrupter faucet, the market demand is improving. Baoguang Co., Ltd. has been focusing on the research and development, manufacturing and sales of vacuum interrupter products for more than 50 years. It has an annual production capacity of one million vacuum interrupters and has core competitiveness in brand awareness, technology research and development, technology and equipment. .

According to the incomplete statistics of China Vacuum Electronics Industry Association, the market share of the company’s vacuum interrupter products has been maintained at more than 30% for many years, and it is in a leading position in China.

In 2021, the domestic vacuum interrupter and solid-sealed pole industry will be positively affected by the rapid recovery of China’s economy, the total market demand will be strong, and the company’s products will show a boom in both production and sales. In the first three quarters of 2021, the company achieved revenue of 816 million yuan, a year-on-year growth rate of 33%; net profit attributable to the parent was 33 million yuan, a year-on-year growth rate of 8%.

Accelerate diversified development and boost enterprise transformation. The company has cooperated with Beijing Zhizhong Energy Internet Research Institute Co., Ltd., Anji Qingfeng Enterprise Management Consulting Partnership and other enterprises to establish a subsidiary Baoguang Zhizhong, which is controlled by Baoguang Co., Ltd., accounting for 45% of the registered capital, and has completed the registration.

Baoguang Zhizhong will focus on grid energy storage auxiliary frequency regulation business and other power energy storage applications. At present, Baoguang Zhizhong is accelerating market development, and the acquisition of related projects is progressing steadily. The implementation of the grid energy storage auxiliary frequency regulation business has opened up a new channel for promoting the company’s transformation.

Jade Bird Fire actively deploys the energy storage and fire protection market

Jade Bird Fire specializes in the research, development, production and sales of fire safety system products, and is a leading supplier of fire protection products in China. The company’s main products include automatic fire alarm and linkage control systems, electrical fire monitoring systems, automatic gas fire extinguishing systems, and gas detection and monitoring systems.

In the new energy storage and fire protection products, the company’s advantage lies in its ability to combine and cross-border, and has its own chips (“Crescent Ibis” chips are mass-produced, the company is the only company that develops its own chips among all fire alarm companies in the world), temperature sensing, sensor Smoke, gas detection capability, process capability.

Jade Bird Fire has a wide range of layouts in the field of industrial fire protection, and many projects in the field of energy storage fire protection are accelerating.

In the field of energy storage, the company has typical application projects such as the Huairou Science City 10kV Reliability Improvement Project of the State Grid Beijing Huairou Power Supply Company, the Zhejiang Jiaotong Energy Storage and Integrated Energy Management Cloud Platform Project, and the Jutong Energy Storage Cabinet Project.

At the same time, it continued to actively deploy the energy storage and fire protection market. During the year, it has won the bid for the 10-foot/20-foot/40-foot energy storage container (Jutong) gas fire extinguishing system project, an energy storage substation project in Texas, the United States, and the Huagong intelligent energy storage sample box and other projects.

The company operates steadily and its profitability continues to increase. In 2020, the company achieved revenue of 2.525 billion yuan, a year-on-year increase of 11.18%.

The net profit attributable to the parent was 430 million yuan, a year-on-year increase of 18.78%. In the first three quarters of 2021, the company’s revenue was 2.576 billion yuan, a year-on-year increase of 54.34%; the net profit attributable to the parent was 375 million yuan, a year-on-year increase of 16.10%.

Envicool energy storage application product revenue increased

The company mainly provides intelligent manufacturing solutions with lithium battery detection system as the core. The company focuses on consumer lithium battery testing, small power product lithium battery testing,

New energy vehicle power lithium battery testing and energy storage business development, business forms include equipment and product sales, testing services and charging operation services.

The company continues to develop the energy storage business and conduct strategic layout forward-looking. In 2019, the company and CATL jointly established Times Nebula, whose business covers smart home storage systems, large-scale energy storage, mobile energy storage power generation vehicles and other subdivided energy storage fields.

In addition, the company has successively launched Nebula Energy Storage Converter (PCS) series products and Nebula charging pile series products.

Nebula Energy Storage Converter (PCS) series products can control the charging and discharging process of energy storage batteries, and can be applied in energy storage business fields such as renewable energy power generation side energy storage, solar-storage-charge integrated power stations, etc.

Nebula is the leader in lithium battery testing

The company mainly provides intelligent manufacturing solutions with lithium battery detection system as the core. The company focuses on consumer lithium battery testing, small power product lithium battery testing,

New energy vehicle power lithium battery testing and energy storage business development, business forms include equipment and product sales, testing services and charging operation services.

The company continues to develop the energy storage business and conduct strategic layout forward-looking. In 2019, the company and CATL jointly established Times Nebula, whose business covers smart home storage systems, large-scale energy storage, mobile energy storage power generation vehicles and other subdivided energy storage fields.

In addition, the company has successively launched Nebula Energy Storage Converter (PCS) series products and Nebula charging pile series products.

Nebula Energy Storage Converter (PCS) series products can control the charging and discharging process of energy storage batteries, and can be applied in energy storage business fields such as renewable energy power generation side energy storage, solar-storage-charge integrated power stations, etc.

The company invested a lot in research and development in the early stage. In 2018 and 2019, the company’s net profit was 20 million yuan and 60 million yuan respectively. After 2020, the company’s new business will bring about incremental performance and the company’s performance will improve.

In 2020, the company’s revenue will reach 575 million yuan (+57% year-on-year), and the company’s net profit attributable to the parent will reach 57 million yuan (+1325% year-on-year). In the first three quarters of 2021, the company’s revenue reached 572 million yuan (+44% year-on-year), and the company’s net profit reached 73 million yuan (+40% year-on-year).

The leader of the energy storage industry chain is ready

Policies drive the rapid development of the global energy storage industry. The state has introduced energy storage policies at the macro level, and the “14th Five-Year Plan for New Energy Storage Development Implementation Plan” pointed out that the cost of electrochemical energy storage systems will be reduced by more than 30% in 2025, and the industry growth rate is expected to accelerate upward.

From the initial stage of commercialization to the stage of large-scale development, by 2030, the comprehensive market-oriented development of new energy storage will be realized, and energy storage will play a prominent role as an energy regulation necessity in the electrification era. In other countries, developed entities such as Europe, America, Japan and Australia have issued a number of energy storage incentive policies and plans.

In terms of profitability, home energy storage is currently superior to grid/gen-side energy storage. On the one hand, in developed countries such as the United States, Europe, Japan, and Australia, many households have the conditions to install distributed photovoltaic + energy storage.

On the other hand, high electricity prices in Europe and other places (including high energy prices such as natural gas) are naturally suitable for the deployment of energy storage. Therefore, the demand for energy storage in the overseas household market is currently strong, and the profit margin of home storage products is relatively high. There is a certain room for improvement in profit margins on the grid/power generation/communication side.

There is still a lot of room for improvement on the grid/generation side at the business model level. At present, the energy storage on the power generation side is mainly to absorb the abandoned wind and solar energy, and the mandatory distribution of energy storage is required by the policy.

The “14th Five-Year Plan for New Energy Storage Development Implementation Plan” pointed out that: on the power supply side, encourage new energy power stations to configure energy storage in the form of self-construction, lease or purchase, so as to play the sharing role of “multiple uses in one station” of energy storage;

On the user side, user-side distributed energy storage facilities such as uninterruptible power supplies, electric vehicles, and charging and swapping facilities are encouraged to participate in demand-side response.
Changes in business models are expected to improve the profitability of energy storage projects, which in turn will greatly increase the demand for energy storage in related fields. Therefore, from the perspective of long-term space, the field of large energy storage is superior to household energy storage.

The energy storage industry chain is becoming more and more mature, and it is recommended to consider from the perspectives of value volume, performance growth rate, energy storage revenue ratio, industry barriers and concentration.

(1) From the perspective of value, the cost of batteries and energy storage converters is relatively high;

(2) From the perspective of performance growth, short-term overseas home storage will rapidly increase volume and performance growth will be fast. After the medium and long-term power storage business model is improved and profitability is improved, it is expected to open up the quadratic curve of energy storage growth;

(3) From the perspective of the proportion of energy storage revenue, the proportion of energy storage revenue of giant companies in various fields is relatively small, and companies with a high proportion of energy storage revenue and good flexibility include Penghui Energy, Paineng Technology, and variable flow in the battery field. Deye shares in the field of equipment, Hyperstron in the field of system integration (in the process of pre-IPO financing);

(4) From the perspective of industry barriers, energy storage batteries have high requirements on cycle life. At present, the lithium iron phosphate batteries of the Ningde era can achieve 8000-10000 times, which is higher than that of competitors and has technical advantages;

(5) From the perspective of industry concentration, the energy storage battery field is highly concentrated, and CATL has a significant scale advantage.