CICC: The globalization of the energy storage industry is underway, with AIDC's energy storage contributions adding new growth.
Source：Futubull
According to Zhitong Finance App, CICC issued a research report stating that after the second half of 2025 (2H25), Chinese provinces will gradually introduce capacity-based electricity pricing policies. Independent energy storage exhibits excellent economic viability under the revenue model of 'peak-valley arbitrage + capacity-based pricing + auxiliary services,' with robust demand expected to sustain short-term growth momentum. In the European market, driven by energy shortages and insufficient grid flexibility resources, energy storage demand is favorable, with development focus shifting from residential storage toward large-scale storage and commercial-industrial storage. Looking ahead to the global energy storage market in 2026, demand in China, Europe, and emerging markets across Asia, Africa, and Latin America is expected to surge, alongside incremental contributions from AIDC-integrated storage. Investors are advised to pay close attention to high-growth opportunities in non-U.S. overseas markets, including both front-of-meter and behind-the-meter storage opportunities.
The key viewpoints of CICC are as follows:
Surging demand in China and Europe, rapid growth in Asia, Africa, and Latin America
After the second half of 2025 (2H25), as Chinese provinces gradually roll out capacity-based electricity pricing policies, independent energy storage demonstrates strong economic feasibility under the revenue model of 'peak-valley arbitrage + capacity-based pricing + auxiliary services,' with demand surging and short-term growth momentum expected to persist. In the European market, driven by energy shortages and insufficient flexible grid resources, energy storage demand remains positive, with development transitioning from residential storage toward large-scale and commercial-industrial storage. In Australia, where the power market is mature and large-scale storage economics are favorable, projects are accelerating implementation, while residential storage benefits from substantial subsidies, ensuring medium- to long-term demand. In the U.S., aging grid infrastructure continues to drive demand for large-scale storage, but policy constraints may accelerate the localization of lithium battery production. Across Asia, Africa, and Latin America, declining costs of solar-plus-storage systems, coupled with increasing renewable energy integration and grid stability needs, are driving significant demand for large-scale storage, while distributed solar-plus-storage solutions also benefit from the pursuit of stable power supply and reduced electricity costs.
AIDC-integrated storage contributes incremental growth; integrated wind-solar-storage-hydrogen-alcohol projects may see volume expansion
Currently, demand for AIDC in the U.S. is surging. Amid limited power capacity and grid connection challenges, an increasing number of AIDC facilities are incorporating energy storage to enhance flexible interconnectivity and expedite grid integration. Additionally, solar-plus-storage systems can partially meet self-consumption needs. By 2030, AIDC-related storage demand in the U.S. is projected to reach 100-200 GWh. In the green alcohol sector, the shipping industry provides a green premium for eco-friendly alcohol, catalyzing demand for green alcohol applications in maritime transport. Numerous domestic wind-solar-storage-hydrogen-alcohol projects are expected to accelerate construction and commissioning, driving additional energy storage demand.
Robust demand spurs cell supply shortages; companies expand overseas to build competitive barriers
Amid strong energy storage demand since the second half of 2025 (2H25), the supply-demand balance for energy storage cells has remained tight, with leading enterprises maintaining full order books and production schedules extending into the first quarter of 2026 (1Q26). We anticipate that as major players ramp up large-cell production capacity, the situation may ease gradually starting in the second quarter of 2026 (2Q26). Meanwhile, under the influence of localization policies in Europe and the U.S., leading firms are further establishing competitive barriers through overseas factory construction, technology licensing, and other strategies, capitalizing on high-growth demand in overseas markets.
In terms of specific targets,
Front-of-meter recommendations: CATL (300750.SZ, 03750), EVE Energy (300014.SZ), HiberSense (688411.SH); behind-the-meter storage recommendations: Deye (605117.SH), Alpha ESS (688717.SH), Pylontech (688063.SH).
Risk factors
Slower-than-expected global renewable energy transition, policy volatility impacting end-user demand, escalating geopolitical risks in overseas markets, intensified competition within the supply chain resulting in declining profit margins.