In an era where the global community is earnestly battling climate change and advocating for sustainable development, China has embarked on a resolute journey towards optimizing its energy structure while transitioning to a low-carbon economyThis mission is not a mere declaration but a moving reality supported by tangible advancements, notably within the realm of energy storageThe energy storage market in China is emerging as a star, revealing phenomenal growth dynamics and capturing significant attention from stakeholders across the energy sector.
Recent statistics from the National Energy Administration underline this growth, revealing that by the first half of 2024, the cumulative installed capacity of new energy storage projects had soared by over 40% in comparison to the end of 2023. Such figures clearly reflect the vigor and potential thriving within the energy storage market
Specifically, commercial and industrial (C&I) energy storage has distinguished itself, showcasing an unstoppable momentum that is hard to overlookPredictions from industry experts at EESA paint an even brighter picture, estimating that the installed capacity of C&I energy storage will reach 4.8 GW in 2024 and jump to 6.15 GW in 2025. This compelling trend not only suggests that C&I energy storage will continue to accelerate its growth but also indicates an increasingly significant role within the broader energy market, emphasizing its growing contribution to energy sustainability and security.
In this context, Yongfu Co., Ltd(300712.SZ) has recently made a crucial strategic decision by announcing its investment in and acquisition of Sichuan Yongfu Energy Technology Co., Ltd
This strategic move marks a significant expansion of Yongfu’s operational footprint within the energy storage sector, laying a robust foundation for its technological and market advancementLeveraging its strong technical prowess and dedicated service team, Yongfu Energy Technology is committed to providing state-of-the-art distributed energy storage solutions and comprehensive operational servicesTheir ambitions are reflected in their relentless pursuit of excellence, ensuring that every detail—from product performance and quality to operational professionalism and responsiveness—aligns with clients' diverse energy storage needs, enabling efficient, stable, and sustainable growth.
However, Yongfu Coisn’t stopping thereThe company harbors a grander vision for the future
Plans are in motion to create an intelligent operational system that plays a pivotal role in aggregating distributed renewable energy and storage assetsBy harnessing advanced technologies along with a smart management strategy, Yongfu aims to create a flexible and efficient virtual power plantWithin this virtual power plant, various energy resources will be optimally configured and utilized, while also offering market power trading services, thereby enhancing Yongfu’s business portfolio and competitiveness in the energy sector.
Yongfu Cohas operated within the energy industry for three decades, with years of meticulous effort leading to its recognition as a premier provider of zero-carbon and low-carbon power system solutions and productsThe company's expertise shines particularly in the energy storage domain, where its competency in delivering tailored solutions across various technical avenues and application scenarios is noteworthy
They offer comprehensive designs tailored for both large-scale energy storage projects and specific smaller-scale energy needsRemarkably, Yongfu also boasts a suite of products ranging from intelligent battery diagnostic systems and energy management systems to industrial energy storage EMUs and cloud storage platformsEach of these digital products is uniquely powerful, enabling real-time monitoring of battery statuses and ensuring operational safety while delivering exceptional service to clients, ultimately optimizing energy use throughout the storage system.
It is also crucial to recognize the strategic partnership with Sichuan Yongfu Energy Technology Co., wherein lies a wealth of strength and experience in the electric power sectorAs one of the top electricity sellers in Sichuan, it has an annual sales volume exceeding 10 billion kilowatt-hours and a deep-seated expertise gained through navigating various challenges within energy trading over the years
This collaboration presents a powerful synergy—combining Yongfu’s robust foundation in zero-carbon solutions, storage technologies, and related arenas with Sichuan Yongfu's adeptness in electricity transactionsSuch a powerful alliance is bound to foster collaboration, catalyze rapid expansion in the C&I energy storage market, and solidify Yongfu’s share amidst an evolving landscape.
Beyond these developments, Yongfu has also shown remarkable progress in the distributed photovoltaic sector and digital energy productsTheir tailored offerings in distributed photovoltaic stations are crafted around delivering top-tier products and services to clientsIn 2023 alone, this segment of the business experienced an astounding fivefold revenue increase, reflecting a deep market recognition of their contributions
The well-established strategy of “scaled development, standardized products, platform-driven operations, and intelligent maintenance” has proven to play a pivotal role—reducing costs, ensuring product reliability, fostering collaboration, and utilizing Smart Operations to monitor and respond swiftly, thereby securing stable photovoltaic operations.
When addressing digital energy products, Yongfu also shines brightly, delivering superior offerings across categories such as digital energy storage, digital renewable energy, and digital grid technologiesThe company is closely aligned with the ongoing digital transformation of the power energy sector, bridging advanced power technology with automation and information technologyWith advancements in monitoring, big data analytics, artificial intelligence, cloud collaboration, and digital twins, Yongfu has a knack for creating exceptional digital energy solutions
Their products showcase an extensive technological foundation, fulfilling the growing demand for energy digitalization in the current market landscape.
As the electricity system continues to reform and deepen, the market has entered a golden era of rapid developmentDuring this phase, virtual power plants are emerging as a significant nexus of energy and information technology, accentuating their irreplaceable importanceThey are crucial in enhancing the flexibility of new power systems and facilitating the integration of distributed renewable energy resourcesBy pooling scattered power resources and operating with advanced information technology, virtual power plants exhibit flexible regulation capabilities, adeptly responding to fluctuations in electricity demands and ensuring stability within power systems
Additionally, with the vigorous promotion of green electricity trading, virtual power plants open up substantial revenue opportunities for companies, further refining their business models and driving sustainable growth.
Yongfu has been quick to identify and seize this opportunity, leveraging its advanced zero-carbon and low-carbon power systems alongside its strategic positioning in distributed renewable energy storage and digital energy domainsThe company is now rapidly advancing plans to construct an integrated digital energy management system—one that synergizes Internet capabilities with sources, networks, loads, and storage elementsThis system will facilitate effective aggregation of electrical loads, executing efficient demand responses and precisely aligning supply with demand