The Zhitong Finance App learned that recently, the National Energy Administration issued the “Notice on Promoting the Grid Connection and Scheduling Application of New Energy Storage”. In 2023, the scale of new grid-connected energy storage projects in China reached 22.8 GW/49.1 GWh. By the end of 2023, the total installed capacity of new energy storage projects completed and put into operation nationwide reached 31.3 GW/66.9 GWh, an increase of more than 260% over the end of 2022. Looking ahead to 2024, the scale of China's new grid-connected energy storage projects is expected to reach 34.5GW/85.4 GWh in the benchmark scenario. Minsheng Securities pointed out that after the implementation of this “Notice”, new energy storage will accelerate entry into the electricity market, expand its revenue model, and improve its utilization efficiency. At the same time, in the context of “dual carbon”, in the face of the current increasingly severe new energy consumption environment, new energy storage, as a key technology to support the consumption of new energy, is expected to increase the utilization rate of new energy sources. Related targets: Shanghai Electric (02727), Weisheng Holdings (03393), BYD Co., Ltd. (01211), etc.

Specifically, in terms of strengthening the management of new energy storage grid-connected and dispatching operations, the “Notice” requires power grid enterprises and power dispatching agencies to formulate grid-connected rules for new energy storage, standardize grid-connected access management, and ensure that new energy storage can be connected to the grid safely and efficiently. At the same time, power scheduling agencies should scientifically determine the operation mode of new energy storage scheduling, actively support the development of various joint transmission models, and prioritize the deployment of new energy storage pilot demonstration projects.

In addition, the “Notice” encourages technological transformation of existing new energy storage systems to accept scheduling instructions, and promotes innovation in new intelligent energy storage control technology to meet the needs of multiple scenarios and market-based operation.

The so-called new energy storage refers to new energy storage technologies other than pumped energy storage, including new lithium-ion batteries, liquid flow batteries, flywheels, compressed air, hydrogen (ammonia) energy storage, heat (cold) energy storage, etc.

At the end of 2023, the total installed capacity of new energy storage projects completed and put into operation nationwide reached 31.39 million kilowatts/66.87 million kilowatt-hours, an increase of more than 260% over the end of 2022. While the installed capacity is growing rapidly, new energy storage still faces the problem of low utilization. With the rapid development of new energy sources, the power system places greater demand for regulation capacity, and the contradiction between large-scale construction and inadequate utilization of new energy storage is becoming more and more prominent.

The publication of the “Notice” will further promote the widespread application of new energy storage technology in power systems, optimize the energy structure, and improve the safety and economy of power systems. Industry experts said that as an important support for achieving energy transformation and constructing new power systems, the standardization and standardization of grid-connected, scheduling and application will strongly promote the sustainable development of the energy industry.

Meanwhile, favorable policies for new types of energy storage have continued since this year.

Recently, the Jiangsu Provincial Development and Reform Commission issued the “Notice on Accelerating the Peak Work of Grid-side New Energy Storage Projects to Connect to the Grid” in order to meet the demand for electricity insurance and supply during the peak summer season in 2024. The notice said that at present, 41 new grid-side energy storage projects that have been approved in the province have voluntarily promised to be connected to the grid by July 15, 2024. The total project capacity is about 4 million kilowatts. This batch of projects will provide key support and guarantee.

On March 11, the Shaanxi Provincial Development and Reform Commission and the Northwest Regulatory Bureau of the National Energy Administration issued the “Shaanxi Provincial Implementation Plan for New Energy Storage to Participate in Electricity Market Transactions”. According to the plan, independent energy storage can participate in various types of transactions (including capacity compensation mechanisms, etc.) in the medium- to long-term electric energy market, spot electric energy market, auxiliary service market, and capacity market.

On March 5, at the 2nd session of the 14th National People's Congress, Premier Li Qiang of the State Council released a report on the work of the government. Related topics include strengthening the construction of large-scale wind power photovoltaic bases and delivery channels, promoting distributed energy development and utilization, improving the power grid's ability to accept, allocate and control clean energy, and developing new types of energy storage.

Haitong Securities believes that China's energy storage market is developing steadily, moderately and positively, and that new energy storage is a key direction for the development of the industry. The relevant policies proposed by various provinces for grid-connection and market mechanisms for new energy storage projects are becoming more and more perfect, and support is gradually increasing. It is expected to promote the further expansion of the scale of energy storage and provide a favorable environment and conditions for energy storage development. With the rapid development of the energy storage industry, leading enterprises in all sectors will continue to benefit.

Related concept stocks:

Shanghai Electric (02727): Recently, in response to investors' questions, Shanghai Electric said that Shanghai Electric's all-vanadium liquid flow batteries have made significant progress in key materials, electric stacks, products and systems, the industrial chain has been gradually improved, domestic demonstration applications for 100 megawatt liquid flow battery energy storage stations have been realized, and the overall industry has entered the early stages of marketization. At present, the company has successfully developed 5kW/25kW/32kW/65kW series electric stacks and successfully delivered more than 50 liquid flow battery energy storage projects.

Weisheng Holdings (03393): Previously, Weisheng Electric Co., Ltd., a subsidiary of the company, successfully won the bid for the Qianjiang Yuyang Photovoltaic Power Plant shared energy storage equipment procurement project of China Power Construction Hubei Electric Power Survey and Design Institute Co., Ltd., with a procurement scale of 50 mW/100 MWh, and a contract amount of 136 million yuan (about HK$148 million).

BYD Co., Ltd. (01211): On January 29, BYD said on an interactive platform that BYD Energy Storage has provided safe and reliable energy storage system solutions for hundreds of energy storage projects at home and abroad. New energy products are exported to more than 400 cities on 6 continents, including the United States, the United Kingdom, Germany, France, Switzerland, Italy, etc., with a total shipment volume of more than 5.7 GWh.