The Zhitong Finance App learned that Zhishang Securities released a research report stating that in December 2023, the national standard “Lithium-ion Battery for Electric Energy Storage” (GB/T36276-2023) was released, and the requirements for lithium battery energy storage performance and safety indicators will be further improved, which will promote the design upgrade of energy storage power plants. Currently, cell capacity is getting larger and larger, posing a higher challenge to the safety of energy storage systems. Therefore, it is particularly important to find a balance between size limits, capacity pursuit, and safety assurance. On April 9, Ningde Times released a new energy storage product, the Tianheng Energy Storage System. Using a 430 Wh/L lithium iron phosphate energy storage battery, it achieved a high energy level of 6.25 MWh in a standard 20-foot container, setting a record for the highest energy level in the industry in a 20-foot container. At the same time, it can achieve zero capacity attenuation and zero power attenuation in the first 5 years.

The main views of Zheshang Securities are as follows:

High proportion of renewable energy access increases the need for distribution and storage, and energy storage development is on the fast track

By the end of 2023, the share of wind power and photovoltaic power generation in China reached 15.3%, and wind power generation in some regions accounted for more than 20%. With the large-scale introduction of new energy sources, the power system will show “double peaks and double heights” (peak load on the power grid in summer and winter; high proportion of renewable energy, high proportion of power electronic equipment) and “bilateral randomness” (photovoltaic wind power generation is volatile and intermittent, and the power supply side will experience random fluctuations). Energy storage can effectively support the delivery of a high proportion of new energy sources and enhance the energy consumption capacity of new energy sources. At present, energy storage has ushered in rapid development. According to the National Energy Administration, the new domestic energy storage project added an installed capacity of about 22.6 GW/48.7 GWh in 2023, an increase of more than 260% over the end of 2022, and nearly 10 times the installed capacity at the end of the 13th Five-Year Plan.

Energy storage requires reliable support and adjustment capabilities, and the longevity and safety of energy storage systems is critical

Affected by the construction of large new energy bases, the development of distributed photovoltaics, and the operation of local weak power grids, etc., the system's demand for energy storage will continue to grow, putting higher demands on the ability to support and regulate energy storage. In energy storage applications, we often face problems where the actual life of energy storage systems does not meet expectations and safety risks. According to the Chinese Academy of Electrical Sciences, at present, the average actual operating life of power type energy storage in China is less than 3 years, and the life expectancy is 10 years; the actual average operating life of energy type energy storage is less than 8 years, while the life expectancy is 15 years; the average ratio between the actual cycle life of a battery system and the life span of a single battery test cycle is less than 0.5, and the expected life expectancy is 0.85 or more. Up to now, there have been more than 60 clearly reported safety accidents involving energy storage fires.

A new national standard for lithium-ion batteries for electric energy storage was released, putting forward higher requirements for performance and safety indicators

In December 2023, the national standard “Lithium-ion Battery for Electric Energy Storage” (GB/T36276-2023) was released. The requirements for lithium battery energy storage performance and safety indicators will be further improved, which will promote the design upgrade of energy storage power plants. Currently, cell capacity is getting larger and larger, posing a higher challenge to the safety of energy storage systems. Therefore, it is particularly important to find a balance between size limits, capacity pursuit, and safety assurance.

The world's first 5-year zero-attenuation energy storage system that can be mass-produced on a large scale has created a long-life lithium battery milestone. The Ningde Era Tianheng Energy Storage System can achieve zero capacity attenuation in the first 5 years and zero power attenuation in the first 5 years, ensure that the power consumption of the entire auxiliary source is controllable and does not increase throughout the entire life cycle, and technically overcomes the problem of “diving” in lithium battery life over a long period of operation.

Small space contains high energy, taking into account longevity and safety issues

Based on a standard 20-foot container space, Ningde Shidai Tianheng is equipped with L series products with long-life batteries for energy storage. Combined with the PCS constant pressure range, it can achieve the ultra-high energy density of 430 Wh/L of lithium iron phosphate energy storage batteries, increasing the energy density per unit area by 30%, and reducing the total floor area of the entire station by 20%. On the basis of balancing the characteristics of energy storage products, the Ningde Era made key breakthroughs in the two dimensions of structural safety and internal electrochemical reaction safety. Through adaptive control technology, application and abuse safety were achieved, and the level of temperature rise due to uncontrolled heat was manageable.

Investment advice

1) Focus on high-quality integrators such as Southern Grid Technology (688248.SH), Suwen Electric Energy (300982.SZ) (industry and commerce), Southern Grid Energy (003035.SZ) (industry and commerce), Nandu Power (300068.SZ), and Huazi Technology (300490.SZ).

2) Focus on PCS manufacturers such as Sunshine Power (300274.SZ), Shenghong (300693.SZ), Kehua Data (002335.SZ), Costa (002518.SZ), Shangneng Electric (300827.SZ), Kelu Electronics (002121.SZ), Jinlang Technology (300763.SZ), Goodway (688390.SH), Xingyun (300648.SZ), etc.

3) Power equipment companies focusing on the transformation to energy storage, such as Sifang Co., Ltd. (002121.SZ), Siyuan Electric (002028.SZ), Zhiguang Electric (002169.SZ), etc.

4) Focus on temperature control companies such as Invec (002837.SZ), Tongfei Co., Ltd. (300990.SZ), Langjin Technology (300594.SZ), etc.

5) Focus on battery manufacturers such as: Ningde Times (300750.SZ), BYD (002594.SZ), Everweft Lithium (300014.SZ), Pritt (002324.SZ), Penghui Energy (300438.SZ), Pinetech (688063.SH), etc.

Risk warning

Demand for energy storage falls short of expectations; application of technology falls short of expectations; industry competition intensifies.