Event description
On March 21, the national development and Reform Commission and the National Energy Administration officially released the implementation plan for the development of new energy storage in the 14th five year plan. (hereinafter referred to as the implementation scheme).
Event comments
Gradually implement and refine the policies, and clarify the key points of the “14th five year plan” and medium and long-term development of new energy storage. This policy is refined based on the guidance of the National Energy Administration on accelerating the development of new energy storage on July 15, 2021. In terms of development objectives, the requirement of “reducing the system cost by more than 30% by 2025” is added, the digital requirement of “the installed capacity of more than 30 million KW” is removed, and it is clear that “it should have the conditions for large-scale commercial application”. The policy defines the goal of the 14th five year plan, and the energy storage market will develop rapidly within five years.
The implementation plan defines the development direction of adjusting measures to local conditions. Carry out pilot demonstration of new energy storage in combination with the construction of large-scale wind power photovoltaic bases focusing on deserts, Gobi and desert areas; Accelerate the construction of national energy storage development pilot demonstration area in Qinghai Province; Strengthen the tracking and evaluation of the first batch of pilot demonstration projects of scientific and technological innovation (energy storage) in Hebei, Guangdong, Fujian and Jiangsu. The energy storage projects in the above areas may develop faster.
Pay attention to the construction of energy storage at the generation side, and delay and replace the investment in power transmission and transformation facilities. Promote the development and consumption of large-scale offshore wind power and large-scale wind power photovoltaic bases in Gobi desert. And build energy storage systems in areas rich in new energy resources and areas with high penetration of new energy. At the same time, it is required to delay or replace the upgrading and transformation of power transmission and transformation facilities, so as to reduce the comprehensive construction cost of power grid infrastructure.
Encourage multiple technical routes to run in parallel. The implementation plan encourages diversified technology development, carries out research on key core technologies, equipment and integrated optimization design such as sodium ion battery, new lithium-ion battery, lead-carbon battery, liquid flow battery, compressed air, hydrogen (ammonia) energy storage and hot (cold) energy storage, focuses on energy storage technologies such as superconductivity and supercapacitor, and develops and reserves liquid metal battery and solid-state lithium-ion battery.
Improve the price mechanism to encourage the development of user side energy storage. We will accelerate the implementation of the time of use price policy, establish a peak price mechanism, widen the price difference between peak and valley, and guide the transmission of power market prices to the user side.
Build a platform to encourage international cooperation in energy storage and overseas market exploration. In 2020, LGC, Panasonic and Samsung SDI lithium ion energy storage batteries accounted for 66% of the world, Contemporary Amperex Technology Co.Limited(300750) accounted for 14% and Byd Company Limited(002594) accounted for 6%. At present, China’s energy storage market is dominated by Chinese enterprises, but the overseas market is dominated by Japanese and Korean manufacturers. In order to realize the introduction of new energy storage technologies and the expansion of overseas markets, the implementation plan specifies to further promote international energy cooperation in the field of new energy storage.
Investment advice
At present, the global average power generation cost of photovoltaic and onshore wind power is lower than that of coal and natural gas. It has become a lower cost power generation form and will usher in a stage of rapid development. The power ratio of wind power generation system to photovoltaic power generation system will not be stable, but a large number of wind power generation equipment will not be able to achieve a certain proportion of wind power generation system. According to GGII data, China’s lithium battery energy storage increased by 128.4% year-on-year in 2021, and the industry entered the stage of accelerated development. It is suggested to pay attention to the leading enterprises of battery core with the highest cost in energy storage equipment, upstream core resource enterprises and battery energy storage converter enterprises in the medium and long term, such as Contemporary Amperex Technology Co.Limited(300750) , Yunnan Energy New Material Co.Ltd(002812) , Zhejiang Huayou Cobalt Co.Ltd(603799) , Sungrow Power Supply Co.Ltd(300274) , Zhejiang Narada Power Source Co.Ltd(300068) , Shan Xi Hua Yang Group New Energy Co.Ltd(600348) , Shenzhen Dynanonic Co.Ltd(300769) , etc.
There are risks
Price rise of upstream raw materials; New technology substitution; The policy has been greatly adjusted.
