Large storage tender volume continued high boom, the industry is expected to improve the low price competition.

China's large storage bidding volume is a stable growth trend, the industry's low price competition is expected to improve. According to the energy storage and power market data, China's energy storage bidding scale continues to be high boom, January-October 2023 bidding for 28.3GW/54.4GWh, +125%/68.5% year-on-year. Energy storage system winning bid price is under pressure, low price competition situation is obvious, for example, the average price of 2-hour energy storage system, the average price of the system in October 2023 is 0.94 yuan / Wh, compared with the beginning of the year fell 36.1%.

According to the CLP data, 2023H1 national electric power safety committee 19 enterprise members of large storage system, the average daily use of only 2.16h, the average daily full full discharge times 0.58 times. Domestic large storage built without using, built without adjusting the problem is still more significant. Domestic photovoltaic market is a growth rate of the highest certainty of the market, but facing the bottleneck of grid consumption capacity.

Looking ahead, we believe that with the acceleration of power market reform and the decline in raw material prices, new energy distribution storage economy is expected to be good, the industry's low-cost competition will be solved, optimistic about the medium- and long-term development of large storage market space.

The extension of large and household storage is obvious, and we are looking forward to the release of demand in 2024.

According to EIA data, the size of the U.S. January-September commissioned energy storage (>1MW) was 4.3GW, up 43% year-on-year. Comparing EIA's monthly published energy storage planning installation and actual installation, we believe that the U.S. large storage installation delay is still obvious, such as August 2023 planning for September installation of 1,703MW, while the actual installation in September 2023 is only 593MW. looking forward, we believe that with the downward trend of interest rates, the supply chain crisis easing, and the advancement of policies such as IRA, the U.S. large storage installation demand is is expected to be released.

According to WoodMac data, in 2023Q1-Q2, the U.S. household storage installed 293.2MW/769.4MWh, -1.9%/+8.5% year-on-year; the U.S. commercial and industrial energy storage installed 101.6MW/310.3MWh, +14.3%/+53.7% year-on-year.

According to WoodMac's analysis, household storage installations are more dependent on the growth of household PV installations, and due to project delays in the switch from NEM2.0 to NEM3.0, look for a high growth in the household storage market in 2024; and commercial and industrial storage growth may be impacted by supply chain challenges and lack of policy incentives.

Household storage installed capacity still maintains a high boom, waiting for the completion of the de-stocking.

In terms of the European market, Germany is the largest installed household storage country in Europe, and Italy's installed energy storage is also growing very fast. Germany household storage 2023 January-October installed 3.77GWh, a year-on-year growth rate of 138%; of which 264MWh installed in October 2023, a year-on-year growth rate of 41.9%, ring growth rate of -32.1%.

Europe's new energy accounted for a high proportion of the demand for energy storage followed by rapid growth. Germany, the United Kingdom, France and other countries have great potential for the development of energy storage. According to solar power EU and EnergyTrend data estimates, 2023-2025 European household storage installed compound growth rate is still expected to reach more than 50%. Although the industry to warehouse is still in progress, but based on Germany installed year-on-year higher boom, we are optimistic about the European household storage market growth in the medium and long term.