The market demand is growing rapidly, and the energy storage industry is about to enter a period of explosive growth.

Considering that raw material prices are gradually becoming rational, energy storage policies are gradually improving in various regions, and the commercial model is continuously optimizing, independent energy storage is expected to continue to grow rapidly. By 2025, the industry's scale is expected to surpass the trillion yuan mark." On May 24th, Wang Zeshen, Secretary General of the China Chemical and Physical Power Industry Association, received applause for his speech. On that day, the 13th China International Energy Storage Conference was held in Hangzhou, with more than 3,400 industry representatives gathered to discuss the opportunities and challenges of the industry and seek cooperation opportunities in the industry chain. "Booming scene" is definitely the keyword of this event. The reporter saw at the scene that the main forum of the day was full, and there were even scenes where attending guests could not "grab" seats and had to stand throughout the meeting. The exhibition area outside the forum was even more lively, with a continuous stream of potential customers visiting and consulting at the booths. According to the Energy Storage Branch of the China Chemical and Physical Power Industry Association, as of the end of 2022, China's cumulative installed capacity of new energy storage has exceeded 8.7GW, and the overall market scale has reached 180 billion yuan, a year-on-year increase of 240%. It is predicted that by 2023, China's cumulative installed capacity of energy storage is expected to exceed 15GW, reaching 70GW by 2025.

"Energy storage is an important technology and basic equipment to promote the high proportionate utilization of renewable resources and support the construction of new power systems. It is of great significance to promote energy conservation, green and low-carbon development, and achieve carbon peak and carbon neutrality goals," said Huang Libin, Director of the Department of Energy Conservation and Comprehensive Utilization of the Ministry of Industry and Information Technology. Liu Yafang, Deputy Director of the Energy Conservation and Technology Equipment Department of the National Energy Administration, stated that new energy storage, due to its advantages such as flexible layout, rapid response, and short construction period, has increasingly attracted attention and recognition, and has become an indispensable key technology and infrastructure for building new power systems. With the acceleration of the new energy industry, the energy storage industry, as the "escort" for wind and solar power generation, is entering a period of explosive growth. According to statistics from the Energy Storage Branch of the China Chemical and Physical Power Industry Association, as of now, there are more than 80,000 registered enterprises involved in the energy storage industry in China. By 2025, the industrial scale of new energy storage is expected to exceed the trillion-yuan mark, and by 2030, it is expected to approach 3 trillion yuan. "Predictions may not keep up with actual demand," remarked Wang Zeshen, Secretary General of the China Chemical and Physical Power Industry Association. "Market demand in countries such as Australia, India, the Middle East, and Africa is growing rapidly. We expect that by around 2030, the annual incremental demand for the entire market will enter the TWh era," said Ye Wanrou, Market Director of EVE Energy. EVE Energy predicts that the global energy storage market will continue to grow, with total demand between 2023 and 2027 reaching approximately 2200GWh, with China, Europe, and the United States being the main demand regions, accounting for a total share of up to 77%. "The trillion-dollar energy storage race has just begun," commented Wei Qiong, Chairman of Mekliv. Regarding the current status of the energy storage market, she believes that if 2022 was the year of new energy storage, then 2023 is the year of explosive growth for user-side energy storage. "The past three years have been a strategic window period for the energy storage market. Whoever runs fast and runs well will be able to occupy a place in the future energy storage market. In order to seize the market, energy storage companies have already accelerated on the user side, and the industry has launched an energy storage ranking competition."

According to Zhang Yiguo, a member of the Party Committee and Chief Planner at the Hydroelectric and Hydraulic Planning and Design Institute, as the proportion of new energy in the energy mix increases gradually, the demand for flexibility and adjustment of resources in the power system is growing. With the cost continuously decreasing due to scale application, electricity storage will fully realize its potential for both utility and profitability. While the energy storage industry is experiencing consensus on high growth, it also faces risks alongside opportunities, as it is still exploring industrial transformation and new technologies, models, formats, and trends. "Foreign investment, joint ventures, independent brands, and cross-industry newcomers are beginning to compete head-to-head, leading to intensified competition and internal challenges. The industry still needs breakthroughs, deepening, and improvements in many aspects." As the industry is poised to enter an explosive period, Wang Zeshen also issued a "risk alert" regarding potential issues. Tang Wen, President of PINEC Technology, deeply feels the challenges that may come with high growth. "We see the industry's heat continuing to rise, attracting widespread attention in both primary and secondary markets, with cross-industry players seeking development opportunities, and energy storage companies seeking to expand upstream and downstream." Tang Wen believes that since the breakthrough of GWh in lithium battery energy storage installations in 2018, there is still room for optimization in the safety, actual investment return rate, actual utilization rate of energy storage stations, and the audit process for user-side applications. Pang Wenjie, Director and Deputy General Manager of Xiamen Haichen Energy Storage Technology Co., Ltd., also believes that uncertainties still exist in the energy storage track, such as significant fluctuations in raw material prices, the need to open up business models, significant challenges in safety, the need to optimize the compatibility of source-grid-load-storage, and the need to open up the mechanism of energy storage electricity prices, all of which should be taken seriously. Establishing and improving the cost diversion mechanism for independent energy storage is also a key topic of concern in the industry. Wei Qiong said that building a cost diversion mechanism for energy storage lies in full marketization. "The power grid system is transitioning from 'planned electricity' to 'market electricity,' and the electricity spot market is gradually recognizing the main identity of energy storage." Wei Qiong believes that in the future, energy storage must further participate in the electricity market, benefit from market mechanisms, and thus solve the problem of high costs. The article is from Gold Brick Energy, and infringement has been removed.