Core Viewpoint - Energy storage is a crucial component for ensuring energy security and achieving the "dual carbon" goals in China, with significant advancements in new energy storage technologies and applications [2][3]. Group 1: Industry Development - By the end of 2024, China's new energy storage installed capacity is expected to account for over 40% of the global total installed capacity, with a steady increase in operational levels supporting the construction of a new power system [2]. - In the first half of this year, the installed capacity of new energy storage reached 94.91 million kilowatts (22.2 billion kilowatt-hours), representing a growth of approximately 29% compared to the end of 2024 [2]. - Key regions such as Inner Mongolia and Xinjiang have installed capacities exceeding 10 million kilowatts, while Shandong, Jiangsu, and Ningxia have capacities exceeding 5 million kilowatts [2]. Group 2: Application and Impact - The application effects of new energy storage are becoming increasingly evident, as demonstrated by the successful operation of a 2000-kilowatt storage project by Zhejiang Yulong Biotechnology Co., which can balance grid load effectively [2]. - The optimization of charging and discharging strategies in energy storage projects is expected to reduce peak demand by approximately 540 megawatt-hours [3]. - New energy storage has played a significant role in ensuring power supply during periods of high electricity demand, particularly during the recent heatwaves [3]. Group 3: Technological Innovation - The development of long-duration energy storage technologies is emphasized as essential for addressing the challenges of energy transition and maximizing the utilization of renewable energy [3][4]. - Companies are focusing on the research and development of long-duration energy storage cells that offer advantages such as high capacity, long lifespan, and low cost, with some products boasting a cycle life exceeding 11,000 times [4]. - The National Energy Administration plans to expand the application scenarios for new energy storage and enhance market mechanisms to promote high-quality development in the industry [4].

Core Insights - Energy storage is crucial for ensuring energy security and achieving carbon neutrality goals, with China's new energy storage capacity expected to exceed 40% of the global total by the end of 2024 [1] Group 1: Industry Development - As of mid-2024, China's new energy storage capacity reached 94.91 million kilowatts (22.2 billion kilowatt-hours), marking a 29% increase from the end of 2024 [1] - Key regions such as Inner Mongolia and Xinjiang have installed capacities exceeding 10 million kilowatts, while Shandong, Jiangsu, and Ningxia have surpassed 5 million kilowatts [1] - The application of new energy storage is becoming more effective, as demonstrated by a 2000-kilowatt storage project by Zhejiang Yulong Biotechnology Co., which can balance grid load by discharging for 4 hours during peak times [1] Group 2: Market Mechanisms and Innovations - The transition from "independent points" to "intelligent collaboration" in energy storage is underway, with projects optimizing charge and discharge strategies to reduce peak demand [2] - New energy storage utilization hours have significantly increased, with several provinces achieving over 1000 hours annually, contributing to the absorption of renewable energy [2] - The State Energy Administration emphasizes the need for innovation in long-duration storage technologies to address the challenges of energy transition and ensure high utilization of renewable energy [2] Group 3: Technological Advancements - A long-duration energy storage industrial base is being developed in Shandong, focusing on high-capacity, long-lifespan, and low-cost energy storage cells [3] - Companies are encouraged to prioritize product quality and safety while enhancing research and innovation to ensure sustainable development in the energy storage sector [3] - The State Energy Administration plans to expand the application scenarios for new energy storage and improve market mechanisms to promote high-quality development in the industry [3]

Core Insights - The new energy storage sector in China has experienced rapid growth in the first half of this year, with significant advancements in technology and capacity [1][4][18] Industry Overview - As of June 2025, China's cumulative installed capacity for power storage reached 164.3 GW, marking a 59% year-on-year increase [2] - The new energy storage capacity reached 101.3 GW, a 110% increase year-on-year, and is 32 times that of the end of the 13th Five-Year Plan [4][18] - The total installed capacity of new energy storage projects in the first half of this year was 23.03 GW, with both power and energy scales increasing by 68% [4] Market Dynamics - The market for energy storage systems has seen a significant increase in bidding activity, with a 264% year-on-year growth in the bidding scale, reaching 86.2 GWh [9][12] - The collective procurement model has become mainstream, with a notable increase in the scale of collective and framework procurement [10][12] Competitive Landscape - CATL remains the leader in battery shipments, with a volume exceeding 50 GWh, while companies like BYD and others are rapidly closing the gap [5] - The top ten companies in the domestic market for energy storage systems include CRRC Zhuzhou Institute, Haibo Technology, and others, with notable shifts in rankings compared to previous reports [6][7] International Expansion - Chinese companies have also made significant strides in international markets, with new overseas orders reaching 163 GWh, a 246% increase year-on-year [13][14] - The reasons for this international expansion include global energy transition trends and favorable policies in various countries [14][15] Future Projections - By 2030, the cumulative installed capacity of new energy storage in China is projected to reach between 236.1 GW and over 291 GW, with a compound annual growth rate exceeding 20% in the next five years [18][19]

Core Insights - The Baocai Energy Storage Station, China's first large-scale lithium-sodium hybrid energy storage facility, has achieved a cumulative charge and discharge volume of over 100 million kilowatt-hours, significantly supporting the integration of renewable energy into the power grid [1][2] Group 1: Project Overview - The Baocai Energy Storage Station, located in Yunnan, covers an area of approximately 50 acres and has a capacity of 200 megawatts/400 megawatt-hours, featuring 52 independent energy storage systems [1] - Since its commissioning in May, the station has recorded a total charge and discharge volume of 103 million kilowatt-hours and has been activated 272 times, maintaining a high-frequency operation of "two charges and two discharges" daily [1] Group 2: Technological Innovations - The Baocai Energy Storage Station serves as a pilot demonstration project for new energy storage technologies, achieving the world's first applications of various systems, including the "global first set of network-type sodium-ion energy storage systems" and the "world's largest single high-voltage direct-connected network-type energy storage system" [1] - The station utilizes five differentiated network-type energy storage technology routes, promoting the transition of new energy storage technologies from pilot demonstrations to mature applications [1] Group 3: Operational Impact - The station has enhanced the power grid's capacity to manage fluctuations, equivalent to the effect of 400,000 household air conditioners operating simultaneously, thereby stabilizing the integration of renewable energy from over 30 wind and solar power plants [1] - With Yunnan's installed renewable energy capacity exceeding 68 million kilowatts and a penetration rate nearing 70%, the Baocai Energy Storage Station plays a crucial role in supporting the high proportion of renewable energy in the power system [2]

Core Insights - The report highlights Jiangsu's significant growth in new energy storage capacity, ranking first in the Yangtze River Delta and fourth nationally, with a total installed capacity of 7.26 million kilowatts, a year-on-year increase of 104% as of June 30 this year [1] - New energy storage is crucial for energy security and the green transition, acting as a "super power bank" to balance electricity supply and demand [1] Group 1: Storage Technology Overview - Energy storage is categorized into pumped storage and new energy storage, with pumped storage being the most mature and economically viable technology for large-scale development [2] - Jiangsu's geographical limitations hinder the development of pumped storage, with an expected installed capacity of 3.05 million kilowatts in 2024, increasing to 3.5 million kilowatts by 2025 [2] - The province's strength lies in its aggregation effect, enabling coordinated dispatch of various new energy storage resources [2] Group 2: Operational Efficiency - Jiangsu Electric has integrated 95 large-scale new energy storage stations into a unified dispatch system, transitioning from independent operations to centralized control [3] - The company aims to increase the grid-connected capacity of independent shared new energy storage to over 8 million kilowatts by 2030 [3] Group 3: Regional Collaboration - Jiangsu has leveraged inter-provincial cooperation to import surplus pumped storage resources from Anhui and Zhejiang, with a total annual electricity supply of approximately 1.15 billion kilowatt-hours from these sources [4] - The newly added pumped storage project in Anhui is expected to generate 1.2 billion kilowatt-hours annually, enhancing renewable energy consumption [4] Group 4: Technological Innovations - Jiangsu is pioneering compressed air energy storage, with the world's largest non-combustion compressed air storage power station in Jintan, capable of storing 480,000 kilowatt-hours of electricity [5] - The project has demonstrated a conversion efficiency exceeding 60% and has responded to peak shaving commands multiple times during the summer months [5] Group 5: Diverse Energy Storage Solutions - Jiangsu is exploring various energy storage solutions to address the challenges posed by the volatility of renewable energy sources, including the first gravity energy storage demonstration project in China [6] - The gravity storage project is designed to convert potential energy into electrical energy with an efficiency of 85% [6] Group 6: User-Side Storage Development - User-side new energy storage projects are proliferating, with notable installations such as a 61,000-kilowatt storage station by Nanjing Iron and Steel Group, the largest of its kind in the country [7] - Smaller distributed storage systems are also emerging, indicating a growing trend in user-side energy storage solutions [7] Group 7: Industry Chain Development - The new energy storage industry in Jiangsu is becoming increasingly integrated, with a projected sales revenue exceeding 200 billion yuan in 2024 [9] - The province is expected to produce one-third of the national lithium battery output, with nearly 2,000 companies holding core invention patents [9] Group 8: Standardization and Future Outlook - The establishment of local standards for energy storage systems and the development of smart energy settlement terminals are enhancing industry regulation [10] - Jiangsu aims to continue fostering innovation in new energy storage technologies through collaboration with research institutions and universities [10]

Core Viewpoint - The new energy storage technology is crucial for building a new energy system and power grid, presenting significant development opportunities amid the "dual carbon" goals. Hengfeng Bank is actively integrating green financial innovation into the energy storage industry chain to accelerate local energy storage development and support green growth [1]. Group 1: Energy Storage Projects - The first large-scale centralized energy storage station in Henan, with a capacity of 450 MW/600 MWh, is being developed with a total investment of 6.16 billion yuan, highlighting its importance in optimizing the regional energy structure [3]. - Hengfeng Bank's Zhengzhou branch has approved a credit limit of 520 million yuan, with 490 million yuan specifically allocated for the first phase of the project, addressing urgent financing needs [3]. - In Shandong, the 100 MW/400 MWh CO2 molten salt energy storage demonstration project is recognized as a key project for supporting the "dual carbon" goals, with Hengfeng Bank providing 480 million yuan in credit to facilitate its construction [4]. Group 2: Financial Innovations - Hengfeng Bank is implementing innovative financial models, such as "equipment mortgage + electricity revenue rights supervision + comprehensive financial services," to address financing challenges in the energy storage sector [9]. - A 10-year financing plan has been tailored for the distributed energy storage project in Tengzhou, with 450 million yuan allocated to support the project, benefiting 37 enterprises [9]. - In Jiangsu, Hengfeng Bank has secured a 1 billion yuan green loan for the Lianyungang pumped storage power station project, which has a total investment of 8.66 billion yuan and aims to enhance grid stability and clean energy consumption [10]. Group 3: Regional Development and Support - The cloud intelligence energy storage project in Kunming, with a capacity of 120 MW/240 MWh, is the city's first shared energy storage project, and Hengfeng Bank has quickly approved 180 million yuan to support its financing needs [12]. - Hengfeng Bank's efforts in various regions demonstrate a commitment to providing personalized financial services that contribute to the high-quality development of the energy storage industry [14].

Group 1 - The total compensation for the discharge amount of independent new energy storage power stations in Inner Mongolia has exceeded 200 million yuan [1] - The Inner Mongolia Energy Bureau has implemented measures to boost the confidence of investors in new energy storage projects, including a notification issued in March 2025 that outlines compensation for discharge amounts over a ten-year period [1] - A dual revenue model of "discharge amount compensation + spot price difference" has been established to transform energy storage from a cost center to a profit center [1] Group 2 - As the installed capacity of renewable energy in Inner Mongolia continues to expand, new energy storage is entering a phase of scale development, positioning Inner Mongolia as a new hub for the energy storage industry [2]

Core Viewpoint - The new energy storage industry in China is experiencing significant growth, with a notable shift towards lithium battery-based storage solutions, as evidenced by the substantial increase in installed capacity and market activity [3][6][26]. Group 1: New Energy Storage Project Scale - As of June 2025, China's cumulative installed capacity for electric power storage reached 164.3 GW, marking a year-on-year increase of 59% [3]. - The share of pumped hydro storage has fallen below 40% for the first time, indicating a shift towards diverse energy storage technologies [3]. - Cumulative installed capacity for new energy storage surpassed 100 GW, reaching 101.3 GW, which is 32 times the capacity at the end of the 13th Five-Year Plan [6]. Group 2: New Energy Storage Installation in H1 2025 - In the first half of 2025, new energy storage projects added 23.03 GW and 56.12 GWh, with both power and energy scales increasing by 68% year-on-year [8]. - A record monthly installation was achieved in May 2025, with 10.25 GW and 26.03 GWh added, representing year-on-year increases of 462% and 527%, respectively [8]. Group 3: H1 2025 Shipment Data of Storage Enterprises - In H1 2025, China's energy storage battery shipment volume reached 233.6 GWh globally, with CATL, CRRC Zhuzhou, and Sungrow leading the market [10]. - The top ten domestic energy storage system integrators included CRRC Zhuzhou, Haibo Sichuang, and Envision Energy [13]. - In the global market, the top ten energy storage system integrators were led by Sungrow, CRRC Zhuzhou, and Haibo Sichuang [15]. Group 4: New Energy Storage Bidding Market - The bidding market for new energy storage saw significant growth in H1 2025, with the bidding scale for energy storage systems reaching 86.2 GWh, a year-on-year increase of 264% [18]. - The bidding scale for centralized procurement increased by 618%, accounting for 69% of the total bidding market [18]. - The average bidding price for 0.5C energy storage systems was 553.52 yuan/kWh, down 28% year-on-year, while the price for 0.25C systems was 446.80 yuan/kWh, down 69% [24]. Group 5: Outlook for New Energy Storage Market - The new energy storage market is expected to be driven by market forces, with a focus on expanding application scenarios and innovative business models [26]. - The cumulative installed capacity of new energy storage in China is projected to reach 236.1 GW under conservative scenarios and exceed 291 GW under ideal scenarios by 2030, with a compound annual growth rate of over 20% in the next five years [26][29].

Core Viewpoint - The report highlights the critical role of new energy storage in supporting the new power system and achieving the "dual carbon" strategic goals, emphasizing the need for top-level design, addressing development bottlenecks, and strategic layout for the new energy storage industry during the 14th Five-Year Plan period [2]. Group 1: Top-Level Design and Industry Practice - A comprehensive policy framework has been established, with new energy storage included in the Energy Law of the People's Republic of China, marking its legal position in power system regulation [3]. - By the end of 2024, the installed capacity of new energy storage in China reached 73.76 million kilowatts, accounting for over 40% of the global total, with an average annual growth rate exceeding 130% [4]. - Technological innovation has led to significant advancements, including the mass production of lithium-ion battery cells with a capacity of 500 ampere-hours and a cycle life of 15,000 times [5]. Group 2: Bottlenecks in High-Quality Development - Despite a 25% decrease in lithium-ion battery storage costs compared to 2023, the initial investment for long-duration storage (over 4 hours) remains high, with vanadium flow battery systems costing 1.6 to 2.5 times that of lithium-ion batteries [6]. - The current standards primarily cover electrochemical storage, but there are systemic challenges in the implementation of these standards, highlighting the need for enhanced execution and regulatory oversight [7]. - The industry chain has weak links, particularly in high-end products, which still rely on imports, indicating a need for improved collaboration between research, development, and engineering [9]. Group 3: Leading Global Energy Storage Paradigm - A focus on technological innovation across various time scales is essential, with plans to upgrade lithium-ion batteries and accelerate the industrialization of sodium-ion and solid-state batteries [10]. - The establishment of a unified capacity compensation mechanism and a three-pronged revenue model is necessary to unlock diverse value opportunities for new energy storage [11]. - The report advocates for the internationalization of storage technology standards and the establishment of integrated projects in overseas markets, aiming to position China as a leader in the global energy storage industry [12].

Domestic Market Performance - The Shanghai Composite Index closed at 3,696.77, with a rise of 0.83% [3] - The Shenzhen Component Index closed at 11,634.67, with a rise of 1.60% [3] - The ChiNext Index closed at 2,022.77, with a decline of 0.47% [3] International Market Performance - The Dow Jones closed at 30,772.79, down by 0.67% [4] - The S&P 500 closed at 3,801.78, down by 0.45% [4] - The NASDAQ closed at 11,247.58, down by 0.15% [4] Economic Indicators - In July, the industrial added value above designated size increased by 5.7% year-on-year, while retail sales of consumer goods rose by 3.7% [8] - Fixed asset investment from January to July grew by 1.6% year-on-year [8] Industry Analysis - The software industry saw a revenue of 7.06 trillion yuan in the first half of 2025, growing by 11.9% [14] - The AI sector is experiencing significant growth, with a 422% increase in the number of projects awarded related to large models in July [14] - The semiconductor industry showed a 3.06% increase in July, with a year-to-date increase of 11.96% [24] Investment Recommendations - The report suggests focusing on sectors such as insurance, robotics, banking, and semiconductors for short-term investment opportunities [8][12][13] - In the software sector, companies like Huada Jiutian and Runze Technology are highlighted for their growth potential [14] - The report recommends monitoring the agricultural chemicals, organic silicon, and polyester filament industries due to their benefits from anti-involution policies [17][20] Sector Performance - The chemical industry index rose by 4.51% in July, outperforming the Shanghai Composite Index [17] - The media sector saw a 35.97% increase in the total market value of public fund holdings in Q2 2025 [21] - The photovoltaic industry index increased by 9.73% in July, indicating a recovery from previous lows [32]