When the industry was still exploring the commercialization path of energy storage, an order list from China Power Construction exploded in the energy circle. Recently, China Power Construction has signed a series of new energy storage project orders with a total amount of about 50 billion yuan, which is particularly impressive against the backdrop of a 41.97% decline in its traditional thermal power business during the same period. This is not only a breakthrough in the company's own business, but also an important symbol of the entire new energy storage industry moving from pilot demonstrations to large-scale commercial applications.

Interpreting the underlying logic of the industry from demonstration to commercialization

Through the details of the 50 billion order, we can clearly see the key turning point in the development of the new energy storage industry.

Firstly, the project scale has achieved a leap from "megawatt level pilot" to "gigawatt level mass production". For example, the 300MW/1200MWh electrochemical energy storage project at Texas Fengyi uses third-generation lithium iron phosphate batteries, with an energy density exceeding 200Wh/kg and an annual reduction of 83000 tons of carbon dioxide emissions; The 1 million kilowatt/4 million kilowatt hour energy storage project at Xilingol Dongsu Substation is specifically designed for low-temperature environments, with a capacity retention rate of 90% even at -30 ℃. The concentrated implementation of such large-scale projects marks the formal entry of the energy storage industry into the stage of large-scale development.

Secondly, the technological roadmap presents diversified and scenario based characteristics. China Power Construction has established a comprehensive technology system of "electrochemistry+mechanical energy storage" to achieve precise scene matching. The 300MW advanced compressed air energy storage power station in Longquanshan, Yueyang, Hunan Province adopts a 15 meter ultra large hole diameter storage tank, with a system efficiency increased to 70%, designed specifically for long-term peak shaving; The Energy Storage Technology Ningxia Zhongwei Battery Energy Storage Project adopts liquid cooling technology, with a response time of less than 50ms, perfectly matching the frequency regulation needs of the power grid.

Thirdly, achieve innovative breakthroughs in business models. More than 60% of the projects in the order have adopted an integrated model of "investment+construction+operation", successfully solving the industry's profitability problem. A provincial power grid side energy storage project is expected to achieve an internal rate of return of 8% -10%, with a return cycle compressed to 8-12 years, providing a replicable profit model for the industry.

Finally, the cost advantage is fully demonstrated. According to supporting procurement data, the cost of lithium iron phosphate energy storage system has been reduced to 0.6 yuan/Wh, a decrease of 25% compared to 2023; The cost of sodium ion battery system is as low as 0.35 yuan/Wh. The cost per kilowatt hour of a 300MW sodium electricity storage project in Xinyang, Henan is only 0.25 yuan/kWh, which is close to the cost level of traditional thermal power and lays the foundation for large-scale commercial use.

Industry explosion under the resonance of policies, markets, and technology

The rapid development of new energy storage is due to the coordinated promotion of policies, markets, and technologies.

At the policy level, energy storage is shifting from being "encouraged" to being "mandatory". The Action Plan for Large scale Construction of New Energy Storage (2025-2027) clearly requires that the installed capacity of new energy storage should reach over 60GW by 2027, and the proportion of supporting energy storage for new energy power stations should not be less than 15%. In the first three quarters of 2025, the installed capacity of new energy storage in China increased by over 150% year-on-year, making energy storage a "must-have" option for energy companies.

At the market level, the demand for new energy consumption continues to grow. As of the end of 2024, China's installed capacity of renewable energy reached 1.889 billion kilowatts, accounting for 56% of the total installed capacity, but the pressure of new energy consumption still exists. Taking the Northwest New Energy Base as an example, the wind power curtailment rate will reach 2.8% and the solar power curtailment rate will reach 2.2% in 2024. Energy storage facilities can reduce the curtailment rate to below 1%, which will stimulate huge market demand.

At the technical level, continuous breakthroughs are driving down costs. The efficiency of the all vanadium flow battery system has reached 85%, and the design life of compressed air energy storage exceeds 40 years. Since taking the lead in establishing the New Energy Storage Research Center in March 2024, China Power Construction has focused on tackling core technologies such as liquid cooling systems and grid based energy storage. The gross profit margin of its clean energy business has reached 28.7%, far exceeding traditional infrastructure business.

50 billion orders will trigger industry changes

The landing of a 50 billion order from China Power Construction Corporation indicates a profound transformation in the energy storage industry. The industry concentration will further increase. Central enterprises have significant advantages in large-scale energy storage projects due to their financial strength, full industry chain capabilities, and project resources. The entry threshold for future industries will be significantly raised, and the market will shift from "wild growth" to "standardized integration". Small and medium-sized players will focus more on sub sectors such as distributed energy storage.

The technological roadmap will accelerate differentiation. Different application scenarios will give rise to differentiated technological choices: sodium ion batteries and cold resistant lithium iron phosphate batteries are mainly used in high latitude regions; Long term energy storage scenarios mainly involve compressed air and flow batteries; The frequency regulation of the power grid is mainly based on high rate ternary lithium batteries. Accurate technology scene matching ability will become the core competitiveness.

The profit model will become more diversified. With the promotion of the "integrated investment, construction, and operation" model, the revenue sources of energy storage projects will expand from engineering construction to multiple fields such as electricity spot trading, auxiliary services, and capacity leasing. Taking the spot market of Shandong Electric Power as an example, energy storage power stations can achieve an annualized return rate of 12% -15% through peak valley arbitrage and frequency regulation services. In the future, operational capability will become the key to enterprise competition.

This 50 billion yuan order is not only a breakthrough for China Power Construction's business, but also a sign of the first year of large-scale commercial use of China's new energy storage industry, indicating a profound restructuring of the entire energy industry landscape. Editor/Yang Beihua