Core Insights - The report from Guotai Haitong indicates that the nationwide promotion of the capacity electricity price mechanism will enhance the economic viability of energy storage in more provinces, leading to significant growth in the sector [1][2] - The introduction of discharge compensation in Inner Mongolia is expected to greatly stimulate energy storage demand in 2026 [1][3] Summary by Sections Capacity Electricity Price Mechanism - The National Development and Reform Commission and the National Energy Administration have released guidelines to promote the consumption and regulation of renewable energy, aiming to meet an annual demand for the reasonable consumption of over 200 million kilowatts of new energy nationwide [2] - The guidelines emphasize the need to improve the capacity electricity price mechanism for coal power, pumped storage, and new energy storage, which is a first-time inclusion of new energy storage in a formal policy document [2] Inner Mongolia Energy Storage Compensation - The compensation standard for independent new energy storage stations discharging to the public grid in 2026 is set at 0.28 yuan/kWh, a decrease from 0.35 yuan/kWh in 2025, but still beneficial for the economic viability of energy storage [3] - The policy is seen as a continuation of the previous year's framework and is expected to significantly boost energy storage demand in 2026 [3] Market Trends and Statistics - In October 2025, the newly added bidding volume for domestic energy storage was 8.39 GW/27.08 GWh, representing year-on-year growth of 24% and 29%, with Inner Mongolia, Xinjiang, and Gansu contributing over half of the market demand [3] - The average bidding price for 4-hour energy storage systems increased by 11% to a range of 0.41-0.5 yuan/Wh, with a weighted average price of 0.44 yuan/Wh [3]

Core Viewpoint - The Inner Mongolia Energy Bureau has issued a notification regarding the management of independent new energy storage power stations, establishing compensation standards and regulatory measures to promote high-quality development in this sector [2][5]. Summary by Sections Compensation Standards - The compensation standard for the discharge of electricity from independent new energy storage power stations to the public grid for the year 2026 is set at 0.28 yuan per kilowatt-hour [2][5]. - For the year 2025, the compensation standard is 0.35 yuan per kilowatt-hour, with a stipulation that projects not commenced by June 30, 2025, will not be eligible for this standard [2][5]. Project Management and Compliance - Independent new energy storage power stations must not change their construction content or ownership structure through means such as proxy holding or hidden shareholders during the construction period and for two years post-completion [3][7]. - Any changes in shareholder ratios, investment entities, or actual controllers must be reported immediately, and projects may be removed from the construction list if such changes occur [3][7]. Operational Guidelines - Storage power stations are required to play a regulatory role in the power system, refraining from discharging electricity during periods of difficulty in renewable energy consumption and from charging during power supply shortages [6]. - The grid companies are mandated to publish daily power supply and demand forecasts and to verify the charging and discharging curves of the storage stations [6]. Regulatory Oversight - Regular supervision will be conducted by local energy authorities in collaboration with grid companies to ensure compliance with the established guidelines [7]. - By January 31 each year, local energy authorities must report the actual control situation of the storage stations to the Inner Mongolia Energy Bureau [7].

Core Insights - The Erdos Wan successful 200,000 kW/800,000 kWh energy storage project in the Kubuqi Desert has been operational since June 29, 2023, achieving a total revenue of 37.0443 million yuan and a profit of 9.99 million yuan by the end of August 2023 [1] - Inner Mongolia is transitioning energy storage stations from cost centers to profit centers, with well-performing stations achieving a comprehensive return rate exceeding 20% [1] - The region has issued a total compensation of 355 million yuan for the discharge volume of independent new energy storage stations from January to August 2023 [1] Summary by Sections Project Performance - The energy storage project has completed 83 charge and discharge cycles, with an average peak-valley price difference of 0.15 yuan per kWh [1] - The project is expected to generate a profit of 29 million yuan by 2025 [1] Policy and Market Dynamics - Inner Mongolia's energy bureau has implemented a compensation standard of 0.35 yuan per kWh for discharge volumes from independent new energy storage stations, effective for projects completed by 2025 [2] - These storage stations can also participate in the electricity spot market, allowing them to buy low and sell high, thus capitalizing on price differences [2] Growth Metrics - The installed capacity of new energy storage in Inner Mongolia has reached 9.63 million kW [2] - From January to August 2023, the cumulative charging volume was 2.71 billion kWh (up 422% year-on-year), and the cumulative discharging volume was 2.36 billion kWh (up 439% year-on-year) [2] - The energy storage systems have demonstrated excellent operational status and application efficiency, particularly during peak summer electricity supply periods [2]

Group 1: Energy Investment Growth - In the first half of 2025, Inner Mongolia's energy major project investment reached 165.8 billion yuan, a year-on-year increase of 39%, accounting for 52% of the annual planned investment [1] - The progress in coal projects includes the approval of two coal mine area plans, the commencement of two coal mines with a total capacity of 16 million tons per year, and the completion of one coal mine with a capacity of 1.5 million tons per year [1] - Smart coal mines account for 89% of the total coal production capacity in operation [1] Group 2: Power Infrastructure Development - The ±800 kV UHVDC transmission project from Inner Mongolia to Beijing-Tianjin-Hebei has been approved, with 29 cross-municipality power grid projects approved in the first half of the year [1] - Ten 500 kV power grid projects were put into operation, and 43 projects are under construction [1] - The project to electrify 580 remote farming and pastoral households has commenced, with the overall progress of Inner Mongolia Power Group's projects at 58% [1] Group 3: Green Hydrogen Initiatives - Inner Mongolia has introduced nine policies to promote green hydrogen project construction and consumption, extending the 40% online electricity ratio policy for wind-solar hydrogen projects until 2027 [2] - The 150,000 kW integrated wind-solar hydrogen demonstration project by Datang Duolun has been put into operation, facilitating the coupling of green hydrogen with coal chemical applications [2] - The construction of the hydrogen long-distance pipeline from Damao Banner to Baotou City has begun, and the demonstration project for hydrogen transportation from Ulanqab City to the Beijing-Tianjin-Hebei region has been approved [2] Group 4: Energy Storage Development - Inner Mongolia has implemented compensation policies for independent new energy storage power stations, stabilizing investment return expectations for enterprises [2] - By the end of June, grid companies had paid a total of 16.6 million yuan in compensation to nine independent new energy storage power stations [2] - A total of 34 new energy storage projects with an installed capacity of approximately 14.8 million kW have commenced construction in the first half of the year [2]

Core Viewpoint - The acceleration of new energy storage projects in Inner Mongolia is crucial for enhancing grid stability and supporting the construction of a new power system, addressing renewable energy consumption issues [2]. Group 1: New Energy Storage Projects - By the first half of 2025, Inner Mongolia plans to start construction on 34 independent new energy storage stations, with a total installed capacity of 14.8 million kilowatts [1]. - Recent projects include a 1 million kilowatt/600 megawatt-hour storage station in Ulanqab and a 300 megawatt/1280 megawatt-hour project in Ordos, among others [1]. - The new energy storage stations will utilize various technologies, including lithium iron phosphate, all-vanadium flow batteries, compressed air storage, and molten salt storage [1]. Group 2: Importance of New Energy Storage - New energy storage acts as a "stabilizer" and "regulator" for the power system, playing a vital role in the construction of a new power system [2]. - The rapid development of new energy storage stations will not only help in the consumption of renewable energy but also enhance the stability and flexibility of the power grid [2].