Research on China's Electricity Market and Photovoltaic and Electrochemical Energy Storage Industry

The reform of China's electricity market has been steadily advancing, and the construction of a unified national electricity market, the connection between the intra-provincial market and the inter-provincial market, the connection between the medium- and long-term market and the spot market, and the market design to promote the absorption of renewable energy are the focus of recent reforms. By 2030, China's total installed power supply capacity will reach 3.65 billion kilowatts, of which 700 million kilowatts of wind power and 1 billion kilowatts of photovoltaics, which are twice and three times that of the end of 2021, respectively. The new installed capacity was 379 million kilowatts and 707 million kilowatts, respectively, with a 9-year compound growth rate of 10% and 16%. The core reason why wind power and photovoltaic growth requires energy storage is to meet the power balance in their seasonal and diurnal fluctuations and ensure the security of the power grid. It is estimated that by 2030, the scale of China's photovoltaic EPC market will reach 3.2 trillion. It is estimated that by 2030, China's installed capacity of electrochemical energy storage is expected to reach 138GW, with a compound annual growth rate of 52% compared to 2020. The cumulative energy storage capacity of electrochemical energy storage is expected to reach 552GWh, and the market size is close to 600 billion.