Explosive Growth Ahead for Energy Storage Fuse Market

As new energy power generation capacity continues to grow rapidly, the storage and allocation of renewable energy have become a major trend. Due to the inherent volatility and intermittency of wind power generation, coupled with its unpredictability, it is unable to generate electricity on overcast days or meet power demands during periods of low generation. This is where energy storage systems can be integrated to smooth out fluctuations and achieve greater efficiency. Several Chinese provinces including Tibet, Xinjiang, Qinghai, Inner Mongolia, Jiangsu, Anhui, Zhejiang, Hunan, and Shandong have issued policies to prioritize the grid connection and incentivize renewable energy stations with energy storage to increase the number of power generation hours.

The energy storage market is expected to grow rapidly in line with the development of new energy power generation. In 2020, China's cumulative installed capacity of energy storage reached 34.9 GW, with a year-on-year increase of about 8%. With about 6000-10000 main fuses and about 30000-50000 internal fuses used for each 1GW of the energy storage system, the market space for fuses used for each 1GW of installed capacity was estimated to be about 10-14 million yuan in 2020. As the installed capacity of new energy power generation continues to increase, the installed capacity of energy storage is expected to accelerate, driving the corresponding fuse market space to expand rapidly.

The New Energy Chamber of Commerce of the All-China Federation of Industry and Commerce predicts that the composite growth rate of the installed capacity of energy storage in China will be 10.8% from 2018 to 2023. If this growth rate is maintained, it is expected that the cumulative installed capacity of energy storage projects in China will reach 64.06GW in 2025, an increase of about 6 GW compared to 2024. The corresponding fuse market space is estimated to be about 60 million to 84 million yuan in 2025, with a CAGR of more than 18% from 2020 to 2025. The energy storage market will be a major trend for the allocation and storage of new energy, as cooperation with the energy storage system can better reduce and smooth fluctuations and achieve higher efficiency in new energy power generation. Several provinces in China have issued policies to prioritize grid connection and increase power generation hours for renewable energy stations with energy storage in proportion.