China Electric Power (02380) announced that on April 15, 2024, Xinyuan Smart Storage (a subsidiary of the company), as the seller, signed a BESS sales contract with Shandong Ludian. Xinyuan Smart Storage will provide energy storage system equipment and components and related services for the Atacama project at a cost of RMB 382 million.
Xinyuan Smart Storage has agreed to provide energy storage system equipment and components and related services for the Atacama project, including battery storage compartments and cabin equipment, power conversion systems, energy management systems, spare parts, installation, commissioning, performance evaluation, trial operation and after-sales service. Within a potential defect liability period of two years from the date of final completion and acceptance, Xinyuan Smart Storage is required to deal with any defects and damage that may occur.
The announcement stated that providing equipment, spare parts and services related to the energy storage system for the Atacama project will help Xinyuan Smart Storage enter overseas markets and accumulate strength in the field of energy storage, help the Group build a comprehensive new energy supply chain, and meet the Group's strategic goal of transforming into a green and low-carbon energy supplier and service provider. Furthermore, the Group plans to enhance the profitability of the energy storage sector through diversified energy storage project development and overseas market expansion.