CICC: The core logic of energy storage growth is the resonance of increased penetration of new energy and the decreased cost of energy storage systems.

The research report from Citic Construction Investment pointed out that the core logic of energy storage growth is the resonance of the increase in the penetration rate of new energy and the decrease in the cost of energy storage systems. Currently, the domestic energy storage market demand is strong, lithium battery production is in high demand, and there are signs of price increases for energy storage batteries; the off-peak season after May 31 is not weak, and project bidding has increased significantly. The main reasons can be divided into two points: first, many provinces have introduced policies such as capacity compensation and capacity leasing to enhance the certainty of energy storage project income; second, the peak and valley price difference has widened in the background of comprehensive entry of new energy into the market. Currently, provinces such as Shandong have a high degree of marketization and good economic efficiency for energy storage power stations; the restrictions on power use in western Inner Mongolia are relatively severe, and there is great room for improvement in the ratio of distributed energy storage. Looking overseas, demand is strong in Europe, Australia, Latin America, Southeast Asia, and other regions.