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TrendForce's latest data shows that demand for energy storage cells remained strong in October, with prices holding steady. Currently, the end-of-year rush for energy storage installations is gradually coming to a close, with expectations of weakening demand towards the year's end. Concurrently, as the trend of depleting energy storage cell inventories approaches year-end, there remains a risk of price declines for energy storage cells. Solid-state batteries, as a new generation of energy storage technology, with advantages such as high energy density, high safety, and long lifespan, are gradually becoming a focal point for investment in the battery industry. Solid-state battery energy storage In recent years, industry demand and anticipation for the application of solid-state batteries have accelerated the commercialization of this technology. According to TrendForce's latest research, global manufacturers such as Toyota, Nissan, and Samsung SDI have begun trial production of all-solid-state batteries. With competitors ramping up production, it is estimated that production levels could reach gigawatt-hour (GWh) levels by 2027. Source: TrendForce Share Energy Storage Cells Solid-State Batteries 【Disclaimer】 The content and information contained in "EnergyTrend - TrendForce New Energy Network" are based on public data analysis and interpretation. While this public data is collected from reliable sources, these analyses and information have not been independently verified. This website has the right but not the obligation to rectify any errors or omissions in any part of this website. Any information appearing on "EnergyTrend - TrendForce New Energy Network" (including but not limited to company profiles, information, research reports, product prices, etc.) strives for but does not guarantee the accuracy of the data, and is provided for reference only. You are responsible for decisions made based on this information. For any inaccuracies, please refer to the respective company's official website. The information and content on the "EnergyTrend - TrendForce New Energy Network" is provided on an "as-is" and "as-available" basis, and changes may occur without further notice. "EnergyTrend - TrendForce New Energy Network" respects and protects the personal privacy of all users. Your registered username, email address, and other personal information will not be disclosed to third parties without your permission or as required by relevant laws and regulations.

On November 29, 2024, China Energy Engineering Corporation (China Electric Power Construction) and Manila Electric Company officially signed the contract for the 1050-megawatt solar project in the capital of the Philippines, Manila. This project, as the first phase of the eastern section of Southeast Asia's largest solar project, signifies a new breakthrough for China Energy Engineering Corporation in the sustainable development of the international new energy market. The Tera Solar Project is located in the province of Nueva Ecija, with a total installed capacity of 3.5 gigawatts of photovoltaics and 4.5 gigawatt-hours of energy storage. It is planned to be constructed in two phases and is the largest solar project in Southeast Asia. The EPC contract signed by China Energy Engineering Corporation this time covers the first phase of the 1050-megawatt photovoltaic plant in the eastern section, with the scope of work including the design, procurement, installation, and commissioning of the photovoltaic plant area. Once completed, the project will directly reduce over 1.2285 million tons of carbon emissions, making a substantial contribution to global efforts to mitigate climate change. Source: Clean Energy Report

The European energy storage market is mainly driven by the demand for energy self-control and cost-effectiveness. As the process of destocking approaches its end, it is expected that the market shipments will return to steady growth in 2024. Meanwhile, the US market is expected to maintain rapid growth in the long term, while emerging markets such as Australia, South Africa, and Southeast Asia may become the driving forces for future residential energy storage growth. As market competition intensifies, market share is likely to further consolidate among leading companies with brand and channel advantages. Chinese companies are making efforts to enter the overseas residential energy storage market, accelerating their expansion in the industrial chain, race tracks, and market segments. They are developing diversified models focused on "integration," "multiple race tracks," and the "entire market," which may lead to a further concentration of global market share among Chinese enterprises. Focusing on regional differentiated demands will help companies achieve breakthroughs. Demand side: Focusing on specific markets and responding to specific needs As a B2C product, residential energy storage has different demand focuses in different markets. Currently, the residential energy storage market can be divided into three categories: High-end closed markets: Represented by the United States and Japan, these markets require deep localization operations. They have high requirements for product performance and after-sales services, high entry barriers, and a certain brand premium. The main participating companies from China are BYD. High-end open markets: Represented by Western Europe, Italy, Australia, and other developed countries, these markets show a significant trend towards product homogenization. Channel saturation has been reached, and the market has entered a phase of brand elimination. However, software aspects will become the key to differentiate among brands in the future. The main participating companies from China are Huawei, Sungrow, GoodWe, and Growatt. Medium-to-low-end open markets: Represented by Eastern Europe, Africa, Southeast Asia, Latin America, and other regions, these markets emphasize cost-effectiveness and product functionality. Considering that these markets are more fragmented, with significant information gaps, companies that offer reliable product performance and excellent cost-effectiveness still have the opportunity to succeed. The main participating company from China is DYU. North American market: Emphasis on localization, price wars are meaningless. According to Energy Sage statistics, despite the significant decline in lithium carbonate prices in H1 2023, the cost of residential energy storage systems in North America did not decrease significantly. The average installation cost of residential energy storage in North America reached $1,352 per kWh, an increase of 2% compared to the previous period. Taking Tesla Powerwall 3 as an example, a 13.5 kWh system costs $7,300, and with additional costs for installation, transportation, and taxes, the total installation cost is approximately $7,600. The system cost accounts for only 50% of the total installation cost. In addition to the product itself, users are paying increasing attention to software based on intelligent charging and discharging strategies, localization teams, and after-sales services. Image: Changes in the average installation price of residential energy storage systems in the United States (USD/kWh) Using the example of BYD, which was established in 2019 and launched its home energy management system in North America in January 2022, its market share in the North American residential energy storage market increased significantly to fourth place in H1 2023, following Enphase, Tesla, and SolarEdge. The company's success is mainly attributed to: Building overseas teams with substantial assets to achieve localization of the Chinese brand. Following Tesla's channel strategy, skipping distributors and directly cooperating with installers. The company targets numerous small and medium-sized EPC (Engineering, Procurement, and Construction) companies in the United States. According to institutional statistics, the number of cooperating EPCs had exceeded 1,000 as of March 2023. By providing more incentives to installers, the company encourages them to promote the brand. Placing importance on quality commitment, with a system warranty of 12 years, exceeding the market's average of 10 years. The market share of residential energy storage brands in the United States varies, but some of the leading brands include Tesla, Enphase, SolarEdge, and BYD. These brands have established a strong presence in the residential energy storage market in the US. In South Africa, the demand for residential energy storage is driven by the country's significant power supply challenges. Eskom, the state-owned power company, has been facing difficulties in meeting electricity demand due to aging power infrastructure and financial constraints. This has led to frequent power outages, and as a result, there is a growing need for off-grid solutions and residential energy storage systems. The South African government has introduced tax incentives to encourage the installation of renewable energy systems, stimulating the rapid development of the country's renewable energy market. Similarly, Brazil is also facing challenges in its power grid infrastructure, leading to frequent large-scale power outages. This has created a strong demand for off-grid solutions and residential energy storage among residents. However, considering the local economic conditions, cost-effectiveness is an important factor for residential energy storage products in these regions. Taking DEYE as an example, the company has targeted the Asian, African, and Latin American markets and has achieved rapid growth in its inverter and residential energy storage products. DEYE initially started with injection molding and sheet metal businesses and became a core supplier to Midea, a leading home appliance manufacturer, after entering the air conditioning heat exchanger field in 2007. The company demonstrated its technological iteration and commercialization capabilities. After entering the inverter market in 2016, DEYE achieved rapid revenue expansion. The company's inverters feature low voltage, wide power range, and high reliability. By utilizing domestically produced IGBTs, self-supply of components, and achieving economies of scale, DEYE successfully reduced costs and met the demand for cost-effective solutions in emerging markets, leading to rapid revenue growth. Translation: The market share of residential energy storage brands in the United States varies, with Tesla, Enphase, SolarEdge, and BYD being some of the leading brands. In South Africa, where power supply challenges are prominent, there is a growing demand for residential energy storage solutions. The Brazilian market also faces similar challenges, with frequent power outages and a strong demand for cost-effective residential energy storage products. DEYE, for example, has achieved significant growth in the Asian, African, and Latin American markets with its inverter and residential energy storage products.

In 2023, Germany, the United Kingdom, and Italy were the top three markets for energy storage installations in Europe. According to TrendForce, the installed capacity in Germany, the UK, and Italy in 2023 was approximately 6.1/4.0/3.9 GWh, respectively. The global energy storage market remained active in the first quarter of 2024. In Europe, Germany, Italy, and Spain continued to experience high growth in the energy storage market during the first quarter, with both Germany and Italy announcing or approving projects exceeding 1 GW. TrendForce predicts that the new installations in Germany, the UK, and Italy in 2024 will be approximately 7.1/7.7/6.2 GWh, representing growth rates of 17%/92%/62%, respectively. Italy's energy storage market is expected to be further integrated with renewable energy generation facilities in 2024, driven by favorable policies. On February 27, 2024, the Italian Council of Ministers approved the "National Recovery and Resilience Plan," which includes the introduction of the "EU Industry 5.0" plan, with an investment of 6.3 billion euros in digitization and energy transition. Prior to this 6.3 billion euro allocation, Italy's National Recovery and Resilience Plan had already committed 59 billion euros between 2021 and 2026 to incentivize renewable energy. Italy's electricity consumption and renewable energy generation rank third in Europe, while electricity prices rank first. The combination of high electricity demand, high prices, and the Superbonus program introduced by the Italian government in 2020 has made Italy the second-largest market for residential energy storage installations and the third-largest market for overall energy storage in Europe.   According to ANIE data, as of June 30, 2023, Italy had a total installed energy storage capacity of 3,045 MW/4,893 MWh, with residential energy storage accounting for over 80% of the new installations. However, in Q2 2023, residential energy storage installations declined by 13% compared to the previous quarter due to the reduction in subsidies under the Superbonus program.   In December 2023, the European Union approved Italy's energy storage plan, allocating up to 17.7 billion euros to help Italy build over 9 GW/71 GWh of energy storage facilities. The plan is expected to run until the end of 2033, with the aim of constructing large-scale storage facilities in southern Italy and Sicily by 2030.   According to TrendForce, Italy's new energy storage installations in 2023 were approximately 2.4 GW/3.9 GWh, representing a year-on-year growth of 117%/90%, primarily driven by residential installations. TrendForce predicts that Italy's new energy storage installations in 2024 will reach 2.6 GW/6.2 GWh. So far, the market size of Italy's energy storage grid is relatively small, but in the coming years, it is expected to become one of the most active markets in Europe. There are also expected to be significant opportunities in the commercial and industrial capacity market.   The fluctuation of energy storage policies in Italy has affected residential energy storage demand. The high subsidies have brought market prosperity but also significant fiscal pressure. The government temporarily suspended the Superbonus subsidy program between February and April 2023 due to budgetary pressures and subsequently reduced the subsidy levels for 2024 and 2025. This has led to construction delays in thousands of projects, affecting residential energy storage demand. The Superbonus program was limitedly extended in December 2023.   The local energy storage demand environment in Italy may undergo significant changes. In 2023, residential energy storage still accounted for the largest share of new installations in Italy. However, in 2024, there is potential for significant development in large-scale and commercial/industrial energy storage. It is important to monitor policy changes and adjust business strategies accordingly to mitigate risks.   Additionally, careful market planning and sales strategies should be implemented to avoid high inventory and to ensure flexible adjustment of product and service supply based on market demand and policy trends, enabling businesses to develop steadily in the context of policy fluctuations.       Source: TrendForce Energy Storage (translated from Chinese)