Energy storage is seen as the core link of the new power system and an important support for the global goal of net zero emissions. In this context, the domestic and foreign energy storage markets are growing rapidly.
Among them, China has become an important leader and promoter of the energy storage industry, accounting for more than half of the total use of energy storage batteries in the global energy sector.
With the overall competitiveness and technological innovation of the industrial chain, the export of Chinese energy storage enterprises to overseas markets is also accelerating. Some companies stand out and become the leaders of energy storage companies going overseas.
Recently, BloombergNEF released the Tier 1 list of global Tier 1 energy storage manufacturers in the second quarter of 2024. Envision Energy Storage has emerged from hundreds of companies around the world and successfully ranked among the world's first-tier energy storage manufacturers by virtue of its professional and reliable product quality, excellent global project performance and strong bankable strength.
BNEF is one of the most credible third-party industry research institutions in the field of new energy in the world. The BNEF Global Energy Storage Manufacturers Tier 1 list is widely recognized around the world, and the list is based on the full investigation and strict screening of hundreds of energy storage brands in the BNEF energy storage project database, and its independent development and establishment of a strict supplier rating system, which is considered to be a fair, objective and highly credible basis in the industry.
Compared with the first quarter, BNEF has added two more review criteria to the list in the second quarter, which must be supported by actual supply and delivery and core energy storage technology.
Envision Energy Storage's success in ranking in the first echelon of the world's first-tier energy storage manufacturers not only reflects the high recognition of Envision energy storage products in the global market, but also demonstrates the strong comprehensive strength of Envision Energy Storage as an industry leader.
Envision's overseas market development is even more in the leading position in the industry. By the end of 2023, Envision Energy Storage has participated in more than 200 projects around the world, with a cumulative delivery of more than 10 GWh and more than 15 GWh of orders in hand. In the 2023 annual shipment ranking of China's energy storage (battery) system integrators, Envision Energy Storage ranks fourth in China and fifth in the world.
The picture shows the top 10 domestic market shipments of Chinese energy storage system integrators in 2023
Source: CNESA, unit: MWh
Envision energy storage market orders are located in Europe, Southeast Asia, the Middle East, Africa, Central Asia and other regions, adapting to personalized scenario requirements and different climatic conditions. Among them, the UK market is one of the most important markets, with a clear leading edge.
The overseas energy storage market not only tests the reliability of energy storage products and the technical ability to provide solutions for different scenarios, but also tests the comprehensive capabilities of energy storage companies in overseas markets, such as brand, supply chain, and after-sales service, so the challenges and risks are very huge.
Taking the warranty period of energy storage as an example, in China, the warranty period of energy storage products is generally 2-5 years, after which the energy storage assets are the responsibility of the customer, and the system provider has no great responsibility. Overseas, however, system providers are required to be responsible for the entire product life cycle. If the product is not too hard, or the performance is not too hard, the later maintenance will pay a heavy price. The little profit earned from selling products in front of you may all be taken into it.
As a result, the BNEF rules specifically state that they cannot be built to meet the requirements for the integration of renewable energy projects (such as those already in place in many provinces in China), which often do not place a high priority on system performance.
As Tian Qingjun, Senior Vice President of Envision and President of Envision Energy Storage, pointed out at the 6th Energy Storage Carnival Ceremony, the market will have higher and higher requirements for energy storage companies in the future. The success of energy storage companies in the Chinese market is not really successful, and it is a truly qualified energy storage company that has withstood the test of the energy storage market in overseas developed countries.
By combing through the classic cases built by Envision Energy Storage overseas, it can be found that these projects are of benchmarking significance, representing the demanding requirements of overseas markets at multiple levels.
For example, the Jurong Island energy storage project in Singapore, where Envision provides a smart liquid-cooled energy storage system, is the largest energy storage project in Singapore and Southeast Asia, with a total planned capacity of 200MW/200MWh.
The picture shows the Jurong Island project in Singapore equipped with Envision Smart Liquid-cooled Energy Storage System.
Singapore's Jurong Island project needs to meet the SCDF EI120 standard, which is the world's highest technical requirements and the most stringent fire insulation standard with the most stringent test methods, requiring the energy storage container to be overheated for two hours, and the average temperature rise in the environment outside the box does not exceed 140K (Kelvin).
The Jurong Island energy storage project is also the first independent energy storage project in Singapore, and the energy storage grid connection standard is still blank. Envision Energy Storage has rich technical experience in the integrated control of wind, solar and storage and the coordination with the power grid, and has helped Singapore establish grid-connected test standards and output standards through system simulation modeling.
In Africa, Envision won the bid for a photovoltaic energy storage project in Mauritius to provide 72MW/258MWh energy storage system equipment, which is a lighthouse project to build a power system with new energy as the main body under the local decarbonization goal, which requires adaptive grid technology (grid construction technology), and is the world's first large-scale energy storage project with 100MW seamless on-grid and off-grid seamless switching technology and black start technology.
The new power system lighthouse project in Mauritius is not an isolated case, and globally, with the increase in the penetration rate of new energy, the safety and stability of the power system has been challenged, especially in isolated and weak grid areas, and such demand is on the rise in Europe, Australia and other regions.
In the UK, Envision has partnered with leading local utility-scale battery storage developers and operators to supply battery energy storage systems (BESS) for its power stations in Wormald Green and Hawthorn Pit in the UK.
The picture shows Envision energy storage AC cabinet arriving at Teesport in the UK
These two energy storage projects are more demanding, in addition to requiring energy storage system suppliers to meet the UK's stringent product quality and safety standards, as well as providing energy storage investment and trading solutions for investment developers.
The UK power market is mature, investors invest in energy storage power stations based on business logic, and hope that energy storage companies can provide one-stop solutions, and Envision integrates local EPC resources to provide customers with end-to-end whole-process solutions, including intelligent trading terminals designed based on the integration of Envision energy storage hardware to provide customers with trading solutions. UK customers use Envision's hardware equipment, as well as Envision's software and algorithms to participate in local electricity spot market transactions, pursuing lower LCOE and higher electricity returns, creating greater value for energy storage investment.
At the 2023 High-tech Energy Storage Annual Conference, Qian Zhenhua, Chief Technology Officer of Envision Energy Storage, said in his keynote speech on "New Challenges of Energy Storage Batteries and Systems from the Perspective of Going Overseas" that energy storage going overseas can be divided into four levels, and the technical requirements of each level are different.
The first layer is the battery cell and PACK providers, which mainly focus on product performance improvement and certification access, and can be supplied to system integrators through overseas market certification;
The second layer is the battery system provider, focusing on the adaptation of the AC system and product standardization, in addition to passing the certification, it is also necessary to do a good job in the design of safety and fire protection, etc., mainly for system integrators;
The third level is the energy storage system supplier, which needs to meet the requirements in terms of grid access and later operation and maintenance.
Qian Zhenhua said that these three layers are common energy storage routes to the sea.
However, as an energy storage system supplier, in the face of the access and certification requirements of the local power grid, it must have the ability of system modeling, do a large number of model simulations to obtain access, and in addition, it must have the ability of long-term operation and maintenance, and sign a warranty operation and maintenance contract with customers.
This also brings the fourth level of technical requirements, energy storage system suppliers must have adaptive grid technology, be able to actively support the power grid, and have matching wind, solar, and storage collaborative control capabilities.
The integration of source, grid, load and storage will be a mainstream form of new energy development in the future, which will coexist with the large power grid and form a new power system.
Qian Zhenhua said that the integration of source, grid, load and storage will be the ultimate mode of energy storage. In the future, energy storage companies need to have the integration technology of source-grid-load-storage and become a comprehensive solution provider of "source-grid-load-storage". Envision has built the world's first zero-carbon industrial park, and is at the forefront of the integration of source, grid, load and storage.
As Qian Zhenhua said, "going to sea is difficult but must be done", which is also the consensus of many enterprises in the energy storage industry. However, looking at Envision Energy Storage's successful overseas experience, it is not easy to go overseas, and the high technical requirements are only the threshold, but also need overseas industrial chain layout, full-cycle services and the blessing of global brands.
For Chinese energy storage companies, the overseas world is vast, and going to sea is the general trend, but in the face of high thresholds and high risks overseas, energy storage companies must also do what they can and go to sea prudently.
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Resources:
[1]彭博新能源财经：BNEF Energy Storage Tier 1 List 2Q 2024
[2] Energy storage headlines: People's Daily focuses on Jurong Island energy storage project How does Envision Energy Storage create a benchmark for the sea?
[3] Energy storage 100 people: Envision Energy Storage Qian Zhenhua: Energy storage companies go to sea to test their real skills
[4] Energy storage 100 people: Envision Energy Storage Qian Zhenhua: It is difficult to go to sea, but it must be done
[5] Vision: Envision Energy Storage was rated as a global first-class energy storage manufacturer by Bloomberg New Energy Finance
Source: Envision Energy Storage
Source: Global Zero Carbon