[SMM Analysis] China's energy storage bid winning capacity declined slightly in January, stand-alone energy storage projects increased

Based on the EPC/system bid winning results of energy storage projects tracked by SMM in January, the total capacity reached 1.6GW/3.0GWh. The capacity of bid wins in a single month declined compared to December. The largest bid winning volume this month came from the EPC general contracting project for Phase I of the 100MW/200MWh Guanling Yueliangwan electrochemical energy storage power station, with the energy storage power station having a capacity of 100MW/200MWh. The planned site of the energy storage power station is 3.2km west of Guanling County, Anshun City, Guizhou Province. It is an electrochemical energy storage power station adopting lithium iron phosphate lithium batteries. The operation mode of the energy storage power station focuses on smoothing renewable energy power plant output and peak shaving, while taking into account a certain frequency regulation capability. In terms of prices, the average bid winning price of 2-hour energy storage systems was RMB 0.74/Wh, still at low levels; the average bid winning price of 2-hour energy storage EPC was RMB 1.22/Wh, with little change compared to December. Entering 2024 Q1, most energy storage projects are still in the demonstration phase, and bid winning capacity declined notably. It is worth mentioning that based on the project information tracked by SMM, the proportion of shared energy storage projects increased markedly. Currently, problems of low utilization