(Electronic Enthusiast Network Report/Zhang Ying) The old era dominated by traditional energy sources is coming to an end, and a new era combining electric vehicles, new energy sources, and energy storage is beginning. Renewable energy sources such as solar and wind power require battery storage for use when the wind and sun are not present. Demand for these large-scale energy storage systems is rising as countries around the world set goals to transition to renewable energy. According to Grand View Research, the market for grid-scale battery storage is expected to reach $15 billion by 2027.

Recently, there have been two major news in the industry. Huawei and Tesla’s big moves in the field of energy storage have greatly increased everyone’s attention to energy storage. According to the latest news from foreign media, Tesla is working with large Japanese power companies to deploy energy storage systems. Tesla will initially supply batteries for an energy storage project in Hokkaido, Japan. A representative of the Japanese energy company said the 6-megawatt-hour system would be able to meet the electricity needs of about 500 households. The system will start operating in 2022. andIn the second quarter of 2021, Tesla deployed 1,274 MWh of energy storage capacity, an increase of 204% over the same period last year.

On October 16, at the 2021 Global Digital Energy Summit held in Dubai, Saudi Arabia, Huawei Digital Energy Technology Co., Ltd. and Shandong Electric Power Construction Third Engineering Co., Ltd. successfully signed the Saudi Red Sea New City Energy Storage Project, with a scale of 1300MWh. The two parties will work together to help Saudi Arabia build a global center for clean energy and green economy. For Huawei, winning this major project means that Huawei has achieved a substantial breakthrough in its continuous layout of the energy storage track.

Picture from Huawei WeChat

What is the magic of the energy storage business that Tesla and Huawei have successively entered? How do their business models differ? This article explains it in detail for you.

Tesla’s road to energy storage, from home energy storage to public utilities! Clean energy policies help accelerate progress

As early as April 2015, Tesla CEO Elon Mask announced that the company entered the energy storage business and demonstrated two products, Powerwall and Powerpack. The energy wall is a rechargeable 18650 lithium-ion battery, and the product capacity includes 7KWh and 10KWh, while the energy pack can provide a capacity of more than 100 kWh through series and parallel connection.

At that time, the energy storage business was an emerging industry in the United States, and Tesla dared to enter it boldly, which was risky, but also made unexpected progress. Shortly after Powerwall went online, Tesla received more than 38,000 orders, of which more than 2,500 orders came from companies that needed power storage.

Later, Tesla made efforts in the field of public utilities. In 2015, a natural gas leakage accident in Aliso Canyon in Portland, USA caused a power shortage. In order to make up for the power shortage, California will deploy 100 megawatts of energy storage equipment within six months. Tesla La, as one of the suppliers, completed the delivery of the 20MW/80MWh energy storage project in only 88 days. In 2016, Tesla completed the deployment of 100MW/129MWh of energy storage in South Australia in 55 days, avoiding power outages because the local power grid could not support the peak load of electricity consumption.

Figure: Tesla’s Megapack supports high-density utility projects in the gigawatt-hour range by integrating battery modules, inverters, thermal systems, and 24/7 monitoring.
Picture from Tesla official website

With the global climate crisis and power supply gap widening, energy storage is a key enabler of the transition to renewable energy. In July 2019, Tesla designed and produced a new energy storage product, Megapack, specifically for utility-scale projects. Tesla says that each Megapack can store 3MWh of energy at a time, and that enough Megapacks can be connected in series to produce a super energy storage device with a storage capacity of more than 1GWh, enough to provide “6 hours of electricity for every home in San Francisco.” .

Compared with similar energy storage systems in the market, the space required by Megapack is reduced by 40%, the number of parts is only 1/10 of similar products, and the installation speed is increased by 10 times. With Megapack, Tesla can build a 250 MW/1 GWh zero-emission power plant on 3 acres of land in less than 3 months, four times faster than a conventional fossil fuel power plant of the same size.

Tesla’s 2019 financial report shows that the annual installed capacity was 1.65GWh, a year-on-year increase of nearly 60%, exceeding the sum of the total installed capacity in 2017 and 2018. According to the forecast of Bloomberg New Energy, the newly installed capacity of electrochemical energy storage in the world will be about 10GWh in 2019, which means that Tesla occupies more than 15% of the global energy storage market share. In this emerging field, Tesla has become a veritable energy storage giant.

In 2020, a total of 1,464MW/3,487MWh energy storage systems were deployed in the United States. Compared with 2019, the installed power increased by 180% year-on-year. Biden announced at the leaders’ climate summit that by 2030, the greenhouse gas emissions in the United States will be reduced by 50% compared with 2005. Energy storage, as a driving force for the transformation of renewable energy, has once again become the focus.

In 2021, Tesla’s energy storage business will officially take off. Tesla CEO Elon Mask revealed in the latest Q2 financial report communication meeting that Megapack’s production capacity by the end of 2022 has been sold out, and a few weeks before the conference call, Tesla launched the Megapack order page and made the pricing public for the first time. Sold to businesses, it starts at $1,235,890 in California. In particular, we noticed that last year, the total installed capacity of Tesla’s energy storage batteries reached 3.02GWh, a year-on-year increase of 83%, which can also be attributed to the popularity of Megapack.

A few days ago, the research institution HIS Market stated that the global energy storage industry will continue to grow rapidly in 2021, and it is expected that the total installed capacity of energy storage systems deployed this year will exceed 12GW. Countries such as China, the United States, the European Union, the Middle East, and Japan have all stepped up policy-driven energy storage markets. For example, the Chinese government recently announced a goal of deploying 30GW of energy storage by 2025.

In 2020, the U.S. Department of Energy officially launched the energy storage grand challenge roadmap, requiring the establishment and maintenance of the United States’ global leadership in energy storage utilization and exports by 2030, and the establishment of a resilient, flexible, economical, and secure energy system. On September 4, 2021, the U.S. Department of Energy announced the “Long-term Energy Storage Research” plan, announcing that it will strive to reduce the cost of systems with an energy storage duration of more than 10 hours by more than 90% within 10 years.

The rise in upstream materials for energy storage batteries has affected the development of the energy storage industry. In May of this year, Tesla has decided to change the battery used by Megapack to lithium iron phosphate battery in order to reduce production costs to drive up sales and ease the tight supply of nickel. On September 23, the construction of Tesla’s Lathrop (Lathrop) MegaFactory officially started, and the main production of energy storage products MegaPack. This is the first expansion of the Nevada Gigafactory to produce the battery packs required for Megapack, which also means that in order to meet the upcoming demand for energy storage in the United States, the production capacity of Tesla’s Lathrop plant in California is expected to be high.

1300Mwh! Huawei signed a large order for global energy storage projects

On October 16, the 2021 Global Digital Energy Summit was held in Dubai. At the meeting, Huawei Digital Energy Technology Co., Ltd. and Shandong Electric Power Construction Third Engineering Co., Ltd. successfully signed the Saudi Red Sea New City Energy Storage Project, with a scale of 1300MWh. It is reported that the Red Sea New City energy storage project is a key project included in Saudi Arabia’s “Vision 2030” plan. The developer is ACWA Power, and the EPC general contractor is Shandong Power Construction No. 3 Company.

Tianyancha information shows that Huawei Digital Energy Technology Co., Ltd. was established on June 7, 2021. The legal representative is Hu Houkun, with a registered capital of 3 billion yuan. The company is wholly-owned by Huawei Technologies Co., Ltd. This company was established in response to the national dual carbon goals of “2030 carbon peak and 2050 carbon neutrality”. Tang Jieling, vice president of Huawei Digital Energy China, said in his latest speech that the key to carbon neutrality is to build a new power system with photovoltaic new energy as the main body. The energy storage system will be distributed in each link of “generation, transmission, distribution, and use” in the new power system, and will play the role of “reservoir” and “regulator, stabilizer” to ensure the safe and stable operation of the power grid.

This time, Huawei Digital Energy won the big order, which also implements Huawei’s original intention to establish four new armies, including customs and port army, smart road army, data center energy group and smart photovoltaic army. Yang Yougui, the former president of Huawei’s Middle East region, served as the CEO of the Data Center Energy Corps. One of the strategic goals of the establishment of these legions is to harvest more food, try to find opportunities to survive, and bring more revenue to Huawei.

In the past ten years, the energy storage industry has experienced rapid development and is currently in the early stages of commercialization and large-scale application. “Compared to the United States, the energy storage system will grow by 100GW in the next ten years, while China plans to install 30GW by 2025. In the next ten years, energy storage will be a trillion-dollar industry.” Secretary of the Energy Storage Application Branch of the China Chemical and Physical Power Industry Association Chief Liu Yong told the media. Liu Wei, Secretary-General of Zhongguancun Energy Storage Industry Technology, said that it is predicted that the compound growth rate of electrochemical energy storage will remain at about 57% in a conservative scenario, and it will exceed 70% in an ideal scenario.

Huawei is obviously optimistic about this track. Huawei Digital Energy Technology Co., Ltd. was upgraded from the digital energy department, including five major businesses: site energy, data center energy, smart photovoltaic, vehicle power supply, and module power supply.

In September, at the 2021 Tokyo Solar Photovoltaic Exhibition in Japan, Huawei’s large-scale ground power station energy storage solution made its debut. One of the highlights is the smart string energy storage solution. In traditional large-scale ground power station energy storage solutions, differences in battery modules will cause mismatches, resulting in problems such as reduced battery capacity, rapid attenuation, difficult operation and maintenance, and high risks. Huawei uses the controllability of power electronics to solve lithium The inconsistency of the battery has reduced the levelized cost of the energy storage system by 20%.

summary:

The global energy storage market is growing rapidly. The United States, China, the European Union, and Japan have introduced policies to promote the implementation of clean energy and the effective connection of energy storage systems. Tesla and Huawei are currently adopting different strategies to enter the energy storage market. Among the customers. Musk prefers to regard Tesla as an energy company, establishing an industrial chain from household photovoltaics, energy storage to electric vehicles. Tesla is trying to complete the closed loop of energy production, storage and utilization, and build a The distributed energy system is developing in an all-round way in the direction of a renewable energy provider.

Huawei is based on its own technological advantages, adopting large-scale operations to focus on breakthroughs among enterprise customers. In the future, we expect the two companies to perform better in this market.

This article is an original article, the author Zhang Ying, WeChat account zy1052625525, please indicate the above sources for reprinting. If you want to join the group, please add WeChat elecfans999, and send an email to [email protected]

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