China Energy Storage Network News:
North American Market: Structural Differentiation Amid High – speed Growth
North America remains the core engine of global energy storage growth. In 2024, the newly installed energy storage capacity reached 37.1 GWh, almost doubling compared to 2023, and it is expected to exceed 65 GWh in 2025. Multiple favorable factors have driven this trend: The Federal Reserve’s interest rate cut has reduced financing costs, and the price of battery cells has dropped by 30% compared to 2022, significantly improving the economic viability of projects.
The market shows a distinct bipolar differentiation pattern: Local companies such as Tesla and Fluence dominate the high – end market, with DC – side system quotations as high as $150/kWh and a gross profit margin of over 30%. Meanwhile, Chinese – funded enterprises like Sungrow and CATL have occupied approximately 80% of the supply chain share with low prices of $80 – 90/kWh.
However, policy risks deserve attention: If the United States imposes high tariffs on China, the export cost of Chinese battery cells is expected to increase by 15% – 20%. Nevertheless, due to the three – year – long construction period of North American local production capacity, it is difficult to replace the Chinese supply chain in the short term. In addition, if the IRA tax credit policy is abolished, the expected project yield is expected to decline by 3 – 5 percentage points. Although the continuous decline in equipment prices can offset the impact to a certain extent.
Middle East Market: The Boom Period Led by Saudi Arabia
Driven by Saudi Arabia, the Middle East energy storage market has entered a stage of rapid expansion. The total planned projects from 2024 to 2025 exceed 30 GWh, including the second phase of SDC (7.8 GWh) won by Sungrow, the third phase of SEC (8 GWh) bid by BYD, and 12 photovoltaic supporting projects (a total of 6.5 GWh).
Saudi Arabia adds 15 – 20 GW of new photovoltaics each year. Calculated based on a 10% – 15% energy storage allocation ratio, the energy storage demand will grow steadily in the next two years. Chinese enterprises account for approximately 90% of the share in project tenders, with the 4 – hour system quotation pressed down to $88/kWh, 22% lower than that in the European market. Local enterprises can mostly only participate in the EPC link.
Although the centralized tendering model brings certain delivery volatility risks (for example, some projects in 2024 may be affected by delayed funds), Middle Eastern countries are determined to phase out fuel and gas – fired power plants and accelerate the transformation to “photovoltaic + energy storage”. Countries such as the UAE and Oman are also actively laying out plans. It is expected that by 2025, the total energy storage demand in the Middle East region will reach 50 GWh.
European Market: Recovery in Residential Energy Storage, Cold Response in Commercial and Industrial Energy Storage
The European energy storage market shows a differentiated trend: Countries like Germany and Poland have introduced subsidy policies of up to 30%, reducing the system cost to 1.9 yuan/Wh. Enterprises with channel and self – produced battery cell advantages such as Deye and Pylontech have a combined market share of 35%. Smaller manufacturers are accelerating their exit from the market.
In contrast, commercial and industrial energy storage is constrained by a project internal rate of return (IRR) of only 8% – 11% and the lack of a capacity – based electricity price mechanism in the EU. The share of auxiliary service revenue is less than 5%, resulting in actual installed capacity falling short of expectations.
It is worth noting that in the Eastern European and African markets, the “bulk solution” (the model of selling batteries and inverters separately) has emerged, accounting for 30% of local shipments, meeting differentiated needs through flexible adaptation.
China and Other Emerging Markets: Scale Expansion Amid Price Wars
The Chinese energy storage market is deeply mired in a price war. It is expected that the newly installed capacity in 2024 will be 109.8 GWh, and it is expected to exceed 130 GWh in 2025, but the industry is generally in the red. Currently, the cost of battery cells has dropped to 0.23 yuan/Wh, and the overall system quotation is only 0.45 yuan/Wh, forcing second – tier manufacturers to transform into system integrators for survival.
Technological iteration is also accelerating: The penetration rate of 280Ah large – sized battery cells exceeds 70%, and the proportion of liquid – cooled solutions has increased to 35%.
Regarding other emerging markets, Australia’s newly installed capacity in 2024 is 2 – 3 GWh, and it is expected to double in 2025. However, it needs to pass strict GPS certification, and the DC – side price reaches $90/kWh. In the Latin American market (Brazil, Chile), the gross profit margin remains at 18% – 22%, and the competition is relatively mild.
The Southeast Asian and South Asian markets are rising rapidly: The monthly residential energy storage shipments in Pakistan reach 50,000 units (5 kWh per unit), and Deye dominates with a 70% market share and maintains a high gross profit margin of over 50%. Due to severe power shortages in Nigeria, the selling price of residential energy storage is 20% higher than that in Europe, but it still takes 6 – 12 months to cultivate the channels.
Technological Changes: Reshaping the Industry Landscape
Technological upgrades are reconstructing the global energy storage industry landscape. The 314Ah battery cells mass – produced by CATL and EVE Energy increase the system energy density by 15% and reduce the full – life – cycle cost of the system by 10%. Sodium – ion batteries are also being piloted and applied in European residential energy storage. Although their cost is 20% higher than that of lithium – ion batteries, they have significant low – temperature performance advantages.
Chinese enterprises are accelerating their extension to the system integration end. The proportion of system business of CATL and BYD has risen to 30% – 40%. Huawei and Sungrow have launched AI dispatching systems, which can increase the power plant revenue by 5% – 8%.
The local supply chain has become a new competitive focus. Europe plans to build over 100 GWh of local battery cell production capacity by 2025 (mainly by Northvolt and ACC), but it still depends on imports in the short term. In the United States, Tesla’s 4680 battery is accelerating its capacity ramp – up, with a self – supply rate target of 30% in 2024, aiming to reduce its dependence on the Asian supply chain.
Risks and Opportunities: Structural Opportunities in Dynamic Games
Policy changes have become the biggest uncertain variable. Adjustments to the US IRA subsidy and the EU’s carbon tariff increase may trigger a 15% demand fluctuation. At the same time, the accelerated exit of second – tier Chinese manufacturers may also lead to supply chain disruptions.
The future investment logic needs to focus on structural opportunities:
1. North America: The EPC link (gross profit margin of 25% – 30%)
2. Middle East: The release of super – large orders brings scale dividends
3. Europe: Re – evaluation of the value of residential energy storage channels (increase in the market share of Deye and Pylontech)
4. Emerging markets: Seizing the first – mover advantage in channels (such as Deye’s channel layout in Pakistan)
In the field of commercial and industrial energy storage, close attention should be paid to policy breakthroughs in the EU capacity market. Enterprises with the ability to integrate grid resources, such as NR Electric, are expected to stand out.
The global energy storage industry has entered a new stage of multi – polar competition. Only by finding the best balance among cost control, technological upgrades, and geopolitical games can enterprises gain a foothold in future competition. The market will ultimately reward those long – termists who accurately position themselves in the local ecosystem.
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