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China’s energy storage sector set for strong growth in 2023 as electric cars, clean energy projects boost demand

  • Industry leaders forecast strong earnings amid surging demand from the EV sector and as the country rolls out more renewable power projects
  • Energy storage is becoming more important as the electricity generated by wind and solar sources tends to fluctuate with changing weather

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Analysts expect the energy storage sector to maintain its momentum in 2023 as China deploys more large-scale renewable energy projects. Photo: Xinhua
Yujie Xuein Shenzhen
China’s energy storage industry will go from strength to strength in 2023, say analysts, after its leading companies forecast strong earnings amid surging demand from the electric vehicle (EV) sector and as the country rolls out more renewable power projects.
It is estimated that China’s demand for advanced energy storage could surge by roughly 50 per cent to 30 gigawatt-hours (GWh) in 2023, driving global demand to 100GWh.

Shenzhen-listed Sungrow Power Supply, China’s leading energy storage company, estimated late last month that its net profit could have reached 3.2 billion to 3.8 billion yuan (US$560 million) in 2022, double the figure the previous year.

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Other major players, including Shanghai-listed Pylon Technologies and GoodWe Power Technology, also posted strong forecasts. Pylon estimated its annual net profit may have reached 1.18 billion to 1.31 billion yuan in 2022, a year-on-year increase of almost 300 per cent.

The robust profit forecasts followed a rapid increase in new energy storage capacity in China in 2022. According to the China Industrial Association of Power Sources (CIAPS), the capacity of advanced energy storage projects put into operation last year was 6.21 gigawatts (GW) / 14.32GWh, a year-on-year increase of about 1.5 times.

03:25

Wind turbine maintenance worker’s sky-high work in China

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Analysts expect the energy storage sector to maintain its momentum in 2023 as China deploys more large-scale renewable energy projects.

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