中国储能双周报：储能参与主体市场化程度提升-China Energy Storage Industry_ China BESS biweekly_ Improved marketization for China BESS participants

Summary of China Energy Storage Industry Conference Call Industry Overview - Industry: China Battery Energy Storage System (BESS) - Current Market Conditions: The BESS price in China has remained stable, with prices at Rmb0.50/0.46/Wh for 2-hour and 4-hour systems respectively. Grid-Forming BESS systems maintain a price premium of Rmb0.10-0.15/Wh over Grid-Following systems. The demand is supported by strong interest from the US, Europe, Australia, and the Middle East [2][4][3]. Key Insights 1. Installation Growth: In the first ten months of 2025, China’s BESS installations reached 35.3GW/89.3GWh, marking a year-on-year increase of 56% in capacity and 60% in energy storage. However, October saw a decline in installations to 1.7GW/3.5GWh, down 35% year-on-year and 51% quarter-on-quarter [3][4]. 2. Bidding Data: The bidding volume for BESS systems decreased by 15% month-on-month to 10.0GW/29.4GWh in October, attributed to the installation cadence and tender schedules. The fourth quarter is expected to see a rebound in domestic demand due to the peak season for grid interconnection of renewable projects [3][4]. 3. Regulatory Changes: The National Development and Reform Committee (NDRC) of China has excluded BESS costs from transmission and distribution tariffs, aiming to promote market participation and fair competition. This policy also includes a capacity compensation mechanism to support BESS returns [4][3]. Additional Considerations - Market Risks: Potential risks to the energy storage industry include slower-than-expected growth in domestic renewable energy capacity, a narrower peak-trough electricity price spread, limited market accessibility for energy storage systems, and higher tariffs on Chinese-made products or import restrictions [14][3]. - Future Outlook: The expectation for strong domestic demand in the fourth quarter of 2025 is based on historical trends of increased installations during this period, driven by the interconnection of renewable energy projects [3][4]. This summary encapsulates the critical points discussed in the conference call regarding the current state and future outlook of the China BESS market, highlighting both opportunities and risks.