CITIC Securities: Streamlining Energy Storage Pricing Mechanism, Domestic Energy Storage Expected to Grow Rapidly.

CITIC Securities research report stated that with the release of Document No. 136 by the National Development and Reform Commission, the energy storage industry is ushering in a new development mode. According to calculations, energy storage projects under spot market and ancillary services are basically profitable. Considering that the country may introduce a capacity electricity price mechanism for energy storage and other regulatory resources, the certainty of income for energy storage projects will be greatly enhanced, which is of great significance for the investment decisions of clients such as national enterprises. According to calculations, with a capacity electricity price level of 100 yuan/kW for energy storage, if the newly installed capacity of energy storage maintains a growth rate of 30%, the impact on end-user electricity prices is only 1.19%. The capacity electricity price for energy storage is feasible. CITIC Securities believes that with the cancellation of mandatory storage allocation after Document No. 136, the energy storage industry will shift from cost competition to value creation, and is expected to achieve an optimization of the industry competitive landscape, showing potential for leading companies in the energy storage industry chain.