Key investment points
Event: the national development and Reform Commission and the Energy Administration jointly issued the implementation plan for the development of new energy storage during the 14th five year plan, which defined the development objectives of new energy storage. By 2025, new energy storage will enter the stage of large-scale development, and by 2030, new energy storage will be fully market-oriented, accelerating the large-scale, industrialized and market-oriented development of new energy storage during the 14th five year plan.
The plan focuses on six directions and deploys six key tasks: the plan deploys six major tasks around clear development goals. First, pay attention to systematic planning and energy storage technology innovation. Second, strengthen demonstration, lead and drive industrial development. Third, support the construction of new power system with large-scale development. Fourth, it emphasizes promoting market-oriented development with systems and mechanisms. Fifth, strive to improve the new energy storage management system. Sixth, promote international cooperation and enhance competitive advantage.
New energy storage has broad market space, favorable policies and rapid development: according to cnesa’s white paper 2021 on energy storage industry research, by the end of 2020, the installed capacity of global energy storage projects had reached 191.1gw, a year-on-year increase of 3.4%. China’s installed capacity reached 35.6gw, accounting for 18.6% of the world, with a year-on-year increase of 9.8%, leading the growth rate in the world. The guidance on accelerating the development of new energy storage further promotes the transformation of new energy storage to large-scale. The installed scale of new energy storage will reach more than 30GW by 2025 from 3.28gw at the end of 2020, with an average annual compound growth rate of more than 55%. In terms of technology, the plan clearly promotes the development of electrochemical energy storage technology, 100MW compressed air energy storage and other technologies, reduces the system cost by more than 30% by 2025, realizes engineering application, constructs a new power system, and supports the realization of the goal of energy carbon peak.
In the context of dual carbon, the plan actively promotes the participation of new energy storage in the power market and auxiliary services: the plan promotes the development of new energy storage on the power side, focuses on the construction of system friendly new energy power stations, and focuses on the high penetration areas of new energy such as inner Mongolia and Xinjiang. With the development of new energy power generation, the waste power will rise. The new energy storage system can effectively reduce the light rejection rate and deal with the instability of the power system by adjusting the storage and discharge time of power generation, so as to ensure the efficient consumption and utilization of new energy. New energy power generation will develop greatly in the future. In order to avoid the instability of the power system at the initial stage of the handover of new energy power generation, we believe that the user’s supporting energy storage as a complementary product is also expected to have greater development space. Therefore, we can pay more attention to the relevant targets of new energy storage and supporting facilities.
Recommended (covered): energy storage and supporting facilities: Shenzhen Envicool Technology Co.Ltd(002837) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Hengtong Optic-Electric Co.Ltd(600487) ; Energy Informatization: Longshine Technology Group Co.Ltd(300682) , Willfar Information Technology Co.Ltd(688100) .
Suggested attention (not covered): energy storage and supporting facilities: Shenzhen Kstar Science & Technology Co.Ltd(002518) , Kehua Data Co.Ltd(002335) ; Energy Informatization: State Grid Information&Communication Co.Ltd(600131) , Ygsoft Inc(002063) , Beijing Sifang Automation Co.Ltd(601126) , Shanghai Holystar Information Technology Co.Ltd(688330) ; Distributed photovoltaic operator: Zhejiang Sunoren Solar Technology Co.Ltd(603105) .
Risk warning: the policy dividend is less than expected; The demand for new energy storage industries is less than expected.
