Why does the US energy storage market start to grow rapidly in 2020?

　　As we all know, the United States is the world's largest economy and it is also the main promoter of clean energy. However, due to economic principles, the US energy storage market did not develop rapidly at the beginning. However, starting from 2020, the US energy storage market has ushered in an explosion. Why has the US energy storage market started to grow rapidly in 2020?

　　(1) As the installed capacity and projects of new energy are increasing year by year, and the demand for electricity in the market is increasing day by year, but the grid in the United States is relatively old, many of which have been overdue, and the cost of renovation is high, making it difficult to adapt to new energy. The requirements for grid dispatching, so the market demand for Battery Storage is rigid.

　　(2) With the passage of the FERC841 Act in 2018, battery energy storage is allowed to participate equally in the auxiliary power services and the electricity wholesale market, which enables the establishment of a profit model for battery energy storage. After all, there is no possibility of profit, and capital will not enter this market. It is precisely because capital has seen the possibility of profit that the United States has started the upsurge of energy storage installations.

　　(3) 40% of the electricity generated in the United States comes from natural gas. As the cost of solar photovoltaic power generation panels and lithium batteries continues to decrease, according to the calculations of relevant agencies, the peak shaving effect and economic efficiency of solar power + energy storage are better than natural gas. As long as the power ratio of energy storage is controlled within 50%, most PPA projects are more competitive than natural gas power plants. Therefore, power companies that had doubts about photovoltaic power generation in the past are now highly motivated to invest.

　　Who are the main investors in the US energy storage market?

　　(1) Since Independent Power Producer (IPP) is the largest investor in American wind and solar power plants, accounting for 83%, and most independent power plants have insufficient peak-shaving power stations, energy storage systems must be configured. 83% of energy storage power stations are owned by IPP, of which the top five are Vistra, LSPOWER, NEE, AES, and Ventura, with CR5=53%.

　　(2) Take AES, the largest independent power plant in the United States, as an example. The energy storage part of the company’s front-line energy storage project was previously used to obtain power auxiliary service revenue, but recently it has been converted to a PPA (power purchase agreement, signed by the power user and the power supplier) The long-term power purchase agreement, the power price is set in advance, the power supplier must meet the real-time power demand of the power user), and the income stability is greatly improved.

　　After the high growth of the US energy storage market, which companies have benefited most?

　　(1) From the perspective of market space, according to Wood Mackenzie's forecast, the size of the US pre-watch energy storage market in 2020 will be 1.1 billion US dollars, and it is expected to reach 5.3 billion US dollars in 2025; according to EIA data, the US energy storage capacity is 0.5GW in 2020, it is estimated that it will be more than 4GW in 2021-2023.

　　(2) Judging from the choice of major energy storage power station investors, lithium iron phosphate batteries are the mainstream choice for owners.

　　Lithium-ion battery (LIB) has become the main energy storage solution in modern social life. Among them, lithium iron phosphate battery is a perfect replacement for lead-acid batteries, and it is the first choice for grid-connected peak shaving, off-grid energy storage, photovoltaic energy storage, UPS, data center and other industries.