J P M O R G A N Latin America Equity Research 05 February 2026 Weg Battery Energy Storage System – BESS: Views from Brookfield – The LT Solution But ST Challenges Today, we hosted Brookfield executives André Flores (Managing Partner) and Thiago Neto (Senior Investment Associate) for a discussion on the potential of Battery Energy Storage Systems (BESS), with a focus on its implementation in Brazil. Our main takeaways were: i) large-scale BESS will undoubtedly be part of Brazil's energy grid given the countr ...

The need for more baseload power generation to maintain grid reliability has power producers looking at many options. Modern natural gas-fired power plants, with a combination of operational flexibility and lower emissions thanks to advanced technologies, have emerged as a dependable firm power source. Utilities are building new gas-fired power generation capacity not only as a baseload resource, but also as a way to support more integration of renewable energy resources. Gas-fired power stations can ramp u ...

KITCHENER, ON, Feb. 5, 2026 /PRNewswire/ -- Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ) today announced that e-STORAGE, its energy storage solutions business, and Sunraycer, a leading developer, owner, and operator of clean energy power sites, have entered into agreements for the supply and long-term servicing of two standalone battery energy storage projects totaling 503 MWh DC in Franklin County, Texas. The projects, collectively referred to as the Lupinus projects, are being d ...

Core Insights - Alpiq has acquired the Cheviré battery storage facility, which is the largest in France, with a capacity of 100MW and 200MWh, capable of supplying electricity to 170,000 households for two hours [1][2][3] Group 1: Acquisition Details - The acquisition was completed on January 21, reinforcing Alpiq's strategy to integrate renewable energy into the energy system [2] - Cheviré is Alpiq's largest operational battery energy storage system (BESS) asset, enhancing its portfolio which now exceeds 750MW across Germany, France, and the Nordics [2][3] Group 2: Strategic Importance - The facility is located on the site of a former fossil fuel power plant, emphasizing Alpiq's commitment to low-carbon power solutions [3] - Alpiq plans further investments in flexible assets across Europe, including a 100MW BESS project in La Corne-en-Vexin expected to come online in 2027 [4] Group 3: Market Positioning - Alpiq views flexibility as crucial for integrating renewable energy and stabilizing electricity grids, positioning France as a strategic market for its growth [5] - The company entered the German battery storage market in December 2025 with a project pipeline totaling 370MW in Brandenburg and Saxony-Anhalt [5]

Summary of Conference Call Notes Industry Overview - The conference call discusses the **Chinese power grid industry**, specifically focusing on the **State Grid Corporation of China** and its investment plans during the **15th Five-Year Plan (FYP)** period from **2026 to 2030**. [1][3] Key Points and Arguments 1. **Investment Targets**: The State Grid aims for a fixed-asset investment of **Rmb 4 trillion** during the 15th FYP, a **40% increase** from the **Rmb 2.8 trillion** during the 14th FYP. This indicates an annual investment of at least **Rmb 800 billion**, translating to a **CAGR of at least 6%**. [1][8] 2. **Growth Segments**: The **Ultra High Voltage (UHV)** segment is expected to grow the fastest at **24% year-on-year** in **2026E**. Investments will shift towards smart grid infrastructure from **2028E to 2030E** due to the increasing share of renewable energy. [2] 3. **Distribution vs. Transmission**: Over the 2026E-2030E period, distribution investments are projected to grow faster than transmission, increasing its contribution to total investment from **57% to 59%**. [2] 4. **Power Transmission Capacity**: The State Grid plans to enhance cross-regional and cross-provincial power transmission capacity by over **30%** compared to the end of the 14th FYP. [3] 5. **Renewable Energy Integration**: By **2030**, renewable energy is expected to account for approximately **30%** of total power generation, supporting the integration of up to **900 GW** of distributable renewable energy capacity. [7] 6. **Market Dynamics**: The competition landscape shows market share consolidation among top players like **Sieyuan**, **Pinggao**, and **TBEA**. [10][29] Additional Important Insights - **Investment Trends**: In **2025**, the disclosed grid investment reached **Rmb 560.4 billion**, marking a **6% year-on-year** increase, with expectations of achieving **11% year-on-year** by year-end. [10][12] - **Equipment Tendering**: Transmission equipment tendering grew by **26% year-on-year** in 2025, with primary equipment at **27%** and secondary equipment at **20%**. However, UHV equipment tendering declined by **12% year-on-year** due to fewer new lines starting construction. [10][14][22] - **Future Expectations**: Five new UHV lines are expected to start construction in **2026E**, with UHV investments anticipated to peak in **2027E**. [25] - **Consolidation in Product Categories**: There is noted consolidation in product categories such as **GIS**, **disconnectors**, and **power transformers**, with significant market shares held by leading companies. [29] This summary encapsulates the critical insights from the conference call regarding the Chinese power grid industry, highlighting investment plans, growth segments, and market dynamics.

Core Insights - ContourGlobal has successfully commissioned a 500 MWh battery energy storage system (BESS) in Bulgaria, marking a significant advancement in the country's energy storage capabilities [1][4] - The 202 MW BESS plant is now operational and plays a crucial role in the national electricity market, enhancing power dispatch and integrating renewable energy sources [2][4] - The project received funding from the EU's NextGenerationEU initiative, demonstrating support for energy transition and resilience in Bulgaria [3] Project Details - The BESS facility occupies 25,000 m² within the Maritsa East 3 coal-fired power plant site, utilizing existing grid infrastructure for efficient integration [3] - The facility consists of 110 battery skids from BYD and 28 integrated power conversion systems, converting direct current to alternating current for grid connection [5] - ContourGlobal is also constructing a second 202 MW BESS on the same site, indicating ongoing investment in energy storage solutions [6] Strategic Importance - The operational BESS contributes to better balancing of electricity supply and demand, thereby enhancing grid stability and flexibility [2] - The continued operation of coal-fired units at the Maritsa East 3 plant supports energy security during peak demand periods [4] - ContourGlobal's portfolio now includes 3 GWh of operating BESS projects, highlighting its significant presence in the battery energy storage market [5]

Core Insights - GE Vernova has commenced commercial operations at the Nhon Trach 3&4 Power Plant in Vietnam, which is the first facility in the country to utilize high-efficiency, air-cooled gas turbine technology and liquefied natural gas as a fuel source [1][2] Group 1: Project Overview - The Nhon Trach 3&4 facility is designed to meet the rising electricity demand in southern Vietnam, particularly in Ho Chi Minh City and Dong Nai province [2] - The project aligns with Vietnam's Adjusted National Power Development Plan VIII, which anticipates a significant role for LNG in the country's energy mix by 2030 [2] Group 2: Technological Advancements - GE Vernova supplied two blocks for the project, each exceeding 800MW in capacity, featuring advanced components such as the 9HA.02 gas turbine and STF-D650 steam turbine [3][4] - The integrated Mark VIe Distributed Control System is expected to enhance asset reliability and operational efficiency while reducing costs [4] Group 3: Environmental Impact - The technology employed in the Nhon Trach 3&4 project allows for lower carbon emissions compared to coal-fired plants of similar output, supporting grid stability and the integration of renewable energy sources [5] - The project represents a shift from coal to gas, contributing to Vietnam's commitment to modern energy standards [5][6] Group 4: Efficiency and Employment - The advanced 9HA.02 gas turbine enables the plant to achieve over 63% combined cycle efficiency, positioning it among the world's most efficient power facilities [6] - GE Vernova currently supports up to 30% of Vietnam's electricity supply and employs over 1,100 staff across 13 locations in the country [6]

Industry Overview - The U.S. utility sector is experiencing rapid transformation due to rebounding electricity demand from data centers, AI computing, electrified transport, and domestic manufacturing [1] - Utilities are increasing investments in power generation, transmission networks, and grid upgrades to ensure reliable supply and support long-term growth [1] Transition to Clean Energy - Utilities are phasing out coal and investing in wind, solar, nuclear, and energy storage, driven by federal incentives and state decarbonization goals [2] - This transition is directing capital towards regulated assets that provide steady returns while reducing emissions [2] - A drop in interest rates to 3.5% to 3.75% is favorable for capital-intensive utility companies [2] Company Focus: PPL Corporation and Xcel Energy - PPL Corporation and Xcel Energy are U.S.-regulated electric utility companies heavily investing in grid infrastructure and renewable energy [3] - PPL emphasizes infrastructure upgrades and clean energy investments, supporting stable cash flows and dividends [4] - Xcel Energy's investment case is bolstered by strong capital spending, a clear clean-energy strategy, and rising customer demand [5] Earnings Estimates - PPL's Zacks Consensus Estimate for 2025 and 2026 EPS indicates year-over-year increases of 7.1% and 7.85%, respectively [7] - Xcel Energy's Zacks Consensus Estimate for 2025 and 2026 EPS indicates year-over-year increases of 9.1% and 7.98%, respectively [10] Financial Metrics - PPL's return on equity (ROE) is 9.08%, while Xcel Energy's ROE is 10.45% [9][11] - PPL and Xcel Energy plan to invest $20 billion and $60 billion, respectively, to strengthen their infrastructure [9] - PPL is trading at a P/E Forward 12-month of 18.01X, while Xcel Energy is at 17.99X [16][18] Dividend Yield and Debt Metrics - PPL's dividend yield is 3.11%, compared to Xcel Energy's 3.06% and the Zacks Utility-Electric Power yield of 2.84% [13] - PPL has a debt-to-capital ratio of 56.85%, while Xcel Energy's is 61.17% [14] - Both companies maintain a times interest earned (TIE) ratio above 1, indicating financial flexibility [15] Long-Term Investment Plans - PPL expects a regulated capital investment plan of $20 billion from 2025 to 2028, with significant potential demand in its Pennsylvania segment [20] - Xcel Energy aims to spend $60 billion from 2026 to 2030, focusing on electric distribution, generation, and natural gas operations [21] Conclusion - Both PPL Corporation and Xcel Energy are investing to upgrade infrastructure and expand assets, with increasing clean energy generation to meet rising customer demand [22] - Xcel Energy is viewed as having better potential going into 2026 due to better earnings estimates, valuation, ROE, and capital expenditure plans [23]

Core Insights - The global Lithium Iron Phosphate (LFP) battery market is projected to grow from approximately USD 8.45 billion in 2024 to around USD 23.55 billion by 2031, with a CAGR of about 16.0% during the forecast period, driven by the adoption of LFP technology in electric vehicles, energy storage systems, and industrial applications [1]. Market Trends - The growth of the LFP battery market is influenced by policy support, technological advancements, and changing end-user demand, with government stimulus programs lowering entry barriers and promoting regional battery manufacturing [3]. - Electric mobility is the primary demand driver, with automakers increasingly using LFP batteries in standard-range electric vehicles due to lower material costs and enhanced safety [4]. - The integration of renewable energy and grid modernization is boosting demand for LFP batteries, favored for their long lifespan and reliability in stationary storage applications [5]. - Technological advantages of LFP batteries include high thermal stability, long cycle life, and lower lifecycle costs, which enhance their competitive position against other lithium-ion chemistries [6]. Market Segmentation - The LFP battery market is segmented by type and application, with graphite holding the largest share due to its role in LFP anodes, while the power segment is leading growth rates due to increased energy storage deployments [10]. - The Asia-Pacific region dominates the market, supported by large-scale battery manufacturing and strong EV adoption, while North America is the fastest-growing region driven by EV incentives and energy storage investments [11]. Key Drivers - Government incentives and supportive policies across major economies are encouraging investment in LFP battery manufacturing and domestic supply chains [8]. - The rapid growth in electric vehicle production is increasing demand for LFP batteries due to their cost-effectiveness and safety [8]. - The expanding installations of solar and wind energy are driving demand for grid-scale and stationary energy storage, where LFP batteries are preferred [8]. - The focus on long-duration energy storage and grid reliability is further strengthening the demand for LFP batteries [8].

Core Insights - Canadian Solar Inc. announced the delivery of a 408 MWh AC Battery Energy Storage System (BESS) to Vena Energy for the Tailem Bend 3 project in South Australia, which is expected to begin operations in 2027 [1][2]. Company Overview - Canadian Solar is one of the largest solar technology and renewable energy companies globally, founded in 2001 and headquartered in Kitchener, Ontario [5]. - The company has delivered nearly 170 GW of solar photovoltaic modules and has a contracted backlog of $3.1 billion as of October 31, 2025 [5]. - Canadian Solar has developed approximately 12 GWp of solar power projects and 6 GWh of battery energy storage projects globally since entering the project development business in 2010 [5]. e-STORAGE Subsidiary - e-STORAGE, a subsidiary of Canadian Solar, specializes in designing, manufacturing, and integrating battery energy storage systems for utility-scale applications [6]. - The company operates manufacturing facilities with an annual battery energy storage system capacity of 15 GWh [6]. Project Details - The Tailem Bend 3 project will utilize nearly 100 SolBank 3.0 battery containers and is part of a Long Term Service Agreement for maintenance [2]. - This project aims to enhance grid stability in South Australia and support renewable energy integration [3]. Vena Energy Collaboration - Vena Energy is a leading green energy solutions provider in the Asia Pacific region, focusing on sustainable and affordable renewable energy [7]. - The Tailem Bend 3 BESS marks Vena Energy's third energy storage project in Australia, contributing to their growth strategy and energy storage capabilities [4].