Soochow: Policy catalyzes market drive, domestic energy storage is expected to open up growth space.

Soochow released a research report stating that the "Document 136" clearly cancels the requirement for energy storage to be included as a prerequisite for newly built new energy projects, promoting market-oriented reforms in the energy storage industry. The collaborative computing and electricity (Compute-to-Electricity) concept has been included in a government work report for the first time. Currently, there is an exponential growth in computational power demand, which has led to a rigid demand for electricity, and the promotion of collaborative computing and electricity is expected to continue to drive energy storage demand. The strong release of energy storage demand is expected to continue to increase the demand for installed capacity by 2026, with the bank predicting a 63% year-on-year growth in the installation of 265GWh of energy storage in 2026. Main points of Soochow: Policy reshaping value system, shifting energy storage from strong compatibility to economy-driven The "Document 136" clearly cancels the requirement for energy storage to be included as a prerequisite for newly built new energy projects, promoting market-oriented reforms in the energy storage industry. Provinces have successively introduced capacity price compensation policies to enhance the economic viability of energy storage. Meanwhile, the "Document 114" from 2026 clearly proposes the establishment of a national capacity pricing mechanism. The bank predicts that other provinces are expected to follow suit, driving rapid growth in energy storage demand. Compute-to-Electricity (C2E) included in a government work report for the first time, energy storage demand expected to continue to rise 1) C2E is not a short-term theme, but a long-term industrial trend. C2E is a progressive development process from exploration to maturity, from basic to advanced, from collaboration to integration. In this process of evolution, the level of collaboration between computing power and electricity continues to deepen, and cooperation becomes increasingly close. 2) C2E was included in a government work report for the first time, expected to drive energy storage demand. China's computing power and electricity distribution is uneven, with policies continuing to tighten, requiring new data centers at hub nodes to have more than 80% green electricity by 2026. Currently, there is an explosive growth in computational power demand, which leads to a rigid demand for electricity, and the promotion of C2E is expected to continue to drive energy storage demand. Installed capacity to maintain high growth in 2025, significant increase in tender demand in 2026, installed capacity demand expected to continue to increase According to CNESA statistics, in 2025, China's new energy storage installed capacity reached 66.43GW/189.48GWh, a year-on-year increase of +52%/+73% in power and energy scales. In 2025, the domestic energy storage tender capacity was 303.8GWh, a year-on-year increase of 72.22%. As we enter 2026, the growth momentum is further accelerating, with the monthly tender capacity in January and February 2026 increasing by 46.81% and 65.67% respectively. The strong release of energy storage demand is expected to continue to increase the installed capacity demand by 2026, with the bank predicting a 63% year-on-year growth in installed capacity of 265GWh. Investment advice: It is recommended to pay attention to energy storage-related targets on the North Exchange: HYSEA, FANGSHENG. Risk warning: Increased competition, technological iteration risk, insufficient supply of raw materials, raw material price risk.