CITIC Securities: By 2025, there is potential for a breakthrough point in the European energy storage market. We are optimistic about the layout of European energy storage business and the battery cell manufacturers and system integration companies.

CITIC Securities research report indicates that large-scale energy storage in Europe is showing accelerated growth, accompanied by frequent increases in peak-valley price differentials due to negative electricity prices in Europe. The yield of most energy storage projects in various countries has increased to 10%-15%, and European governments have increased their support for energy storage after the major power outage in Spain. It is expected that 2025 will be a turning point for the explosive growth of large-scale energy storage in Europe. In terms of European demand volume, it is estimated that the newly installed capacity in Europe is expected to reach 165GWh by 2030, with a compound annual growth rate of 40% from 2024 to 2030, corresponding to a market space of 170 billion yuan. In terms of breakdown, energy storage projects in Eastern Europe are expected to have a rapid outbreak in the short term, while Western Europe and Southern Europe have larger volumes in the long term. Domestic manufacturers, relying on cost advantages, are expected to continue to increase their share of the European energy storage market, and it is promising to focus on battery cells and system integration manufacturers that are developing European energy storage business.