Hong Kong stock concept tracking | Rapid development of new energy storage in our country. Institution: optimistic about the basic fundamentals of the household storage sector rebounding after the holiday (including concept stocks)

On January 23, the Deputy Director of the Energy Conservation and Technology Equipment Department of the National Energy Administration, Bian Guangqi, introduced at a press conference that by the end of 2024, the cumulative installed capacity of newly built and commissioned new energy storage projects nationwide reached 73.76 million kilowatts/168 million kilowatt-hours, about 20 times that of the end of the "13th Five-Year Plan", an increase of over 130% from the end of 2023. China attaches great importance to the development of new energy storage technology industry. In recent years, a series of related policies have been successively issued at the national level, such as the "Guiding Opinions on Promoting the Development of Energy Storage Technology and Industry", "Guiding Opinions on Accelerating the Development of New Energy Storage", and the "14th Five-Year Plan for the Development of New Energy Storage". In 2024, "Developing new energy storage" was first mentioned in the government work report. The "Energy Law of the People's Republic of China" issued and implemented recently stipulates to promote the high-quality development of new energy storage and leverage various energy storage technologies in the regulation of the power system. It is reported that new energy storage refers to energy storage technologies that mainly output electricity except for pumped storage, characterized by short construction period, simple and flexible site selection, and strong regulation capabilities. Since 2023, a variety of new energy storage technologies have emerged in China, such as 300 megawatt-level compressed air energy storage projects, megawatt-level flywheel energy storage projects, and large-scale lithium-ion battery energy storage stations have successively started construction. New technologies like gravity energy storage and liquid air energy storage are also accelerating implementation. The diversification of the new energy storage path and the broad prospects of the energy storage market have attracted the attention of many A-share listed companies. For example, Trina Solar Co., Ltd. stated that the integration of light and energy storage is an inevitable trend in the industry, and the company will firmly develop the energy storage sector in the future to create a second growth curve. Data shows that in the first three quarters of 2024, Trina Solar Co., Ltd.'s energy storage business grew rapidly, with shipments exceeding 2.5GWh, an increase of nearly 300% year-on-year. In October last year, Contemporary Amperex Technology also stated in its third-quarter performance meeting that to maintain its overseas competitive advantage, the company plans to enhance its energy storage system integration capability through technological innovation and business model innovation. The demand for energy storage in the market is growing, especially the significant increase in the demand for energy storage products in the European market. The company is adjusting its strategy to focus on providing higher-quality energy storage products and services, including battery cells, cabinets, cabinets, and system solutions, while establishing strategic relationships with multiple partners to jointly promote the layout of the energy storage market. The trend of continuous growth in new energy storage has taken shape, but there are still some pain points that need to be addressed. Experts have pointed out that the requirements for new energy storage mainly include six aspects: large scale, long life, low cost, high safety, high efficiency, and unlimited resources. Currently, different types of new energy storage technologies have their own advantages and disadvantages, and there is no single energy storage technology that excels in all six aspects. For example, with the development of the power system, the requirements for the power and capacity of lithium batteries are increasing. The larger the individual battery, the higher the safety challenge. Soochow stated that the outbreak of global large-scale storage has strong certainty, the United States maintains high growth, and the peak of European and emerging markets connecting to the grid will continue until 2026. It is expected that the global installed capacity of large-scale storage will increase by 56% to 194 kilowatt-hours in 2025. Domestically, the newly installed capacity in 2024 exceeds 70GWh, an increase of nearly 65% year-on-year. Looking ahead to 2025, although the domestic photovoltaic industry is slowing down, the contribution of energy storage to the revenue of power plants is expected to increase. The proportion and duration of storage will continue to increase, with an expected growth of 30%. China Securities Co., Ltd. believes that energy storage is one of the fastest growing and most cost-effective sectors in the new energy industry. With the increase in duration and the rise of independent energy storage, energy storage has gone beyond its growth curve and will still land unexpectedly. Recently, European electricity prices have risen, and shipments in the Asian, African, and Latin American markets have also recovered, indicating a positive outlook for the post-holiday household energy storage sector. Related concept stocks: BYD COMPANY (01211): BYD Company Limited has provided safe and reliable energy storage system solutions for hundreds of energy storage projects at home and abroad. Its new energy products are sold to more than 400 cities in 70 countries and regions worldwide, including the United States, the United Kingdom, Germany, France, Switzerland, Italy, etc., with a total shipment volume exceeding 5.7 GWh. Shanghai Electric Group (02727): The company continues to enhance its advantages in the energy equipment industry, focusing on new energy equipment and actively expanding multi-energy complementary businesses such as "wind-solar-hydrogen." In the field of energy storage, the company actively lays out compressed air energy storage and liquid flow energy storage technologies. In the first half of 2024, the company's demonstration project of a 300 megawatt-level compressed air energy storage power station in Yicheng, Hubei, was connected to the grid. At the same time, it won the bid for a 10MW/20MWh vanadium flow energy storage system project in Guanyun, Jiangsu. WASION HOLDINGS (03393): In the past two years, the company has increased its efforts to expand overseas through Willfar Information Technology & Winsource Energy (establishing an overseas affairs department at the beginning of 23), vigorously exploring the post-AMI distribution network, smart grid, and other needs of existing customers. It is expected that the proportion of electric AMI in overseas revenue will decrease in 24, while Willfar Information Technology & Winsource Energy will continue to increase, with multiple business developments overseas driving overall growth.