CITIC SEC released a research report predicting that global new energy storage installations will reach approximately 290GWh in 2025, with long-term potential to hit 1.17TWh by 2030, citing data from CNESA, Wood Mackenzie, SolarPower Europe, TrendForce, and BNEF. The report highlights the significant advantages of China's energy storage supply chain, particularly in battery cells and energy storage systems, where global market share continues to expand. CITIC SEC recommends focusing on leading manufacturers in overseas energy storage supply chains, particularly system integrators, battery cell suppliers, and PCS providers. Key insights include:

**Domestic Market: Policy Support Drives Market Acceleration** Regulatory reforms, such as the "Document No. 136," which removes mandatory energy storage allocation for new renewable projects while advancing electricity market liberalization, are enhancing the economic viability of energy storage through diversified revenue streams like peak-valley arbitrage and ancillary services. CNESA data shows domestic new energy storage installations reached 32.0GW/81.6GWh in Q1-Q3 2025 (up 37%/42% YoY). Projections suggest 150GWh and 203GWh in new installations for 2025 and 2026, respectively, with 591GWh expected by 2030.

**U.S. Market: High Returns and Power Shortages Sustain Growth** Wood Mackenzie estimates U.S. energy storage installations will hit 19.0GW/52.5GWh in 2025 (up 53%/45% YoY). While tariff hikes and the OBBBA Act may slow traditional demand, rapid growth in AI data centers (AIDC) is expected to drive incremental demand, pushing U.S. new installations to 185.6GWh by 2030.

**Europe: Negative Electricity Prices and Government Backing Boost Large-Scale Storage** Frequent negative electricity prices in Europe have widened peak-valley spreads, lifting project returns to 10%-15%. Post-Spain blackout, governments are ramping up support, with 2025 likely marking a turning point for large-scale storage. CITIC SEC projects Europe’s new installations to reach 165GWh by 2030 (40% CAGR 2024-2030), translating to a market size of RMB 170 billion. Eastern Europe may see near-term growth, while Western and Southern Europe offer larger long-term potential.

**Emerging Markets: Addressing Basic Power Needs** Markets like Australia and the Middle East are accelerating energy storage deployment alongside solar development, backed by supportive policies.

**Risks:** Potential shortfalls in demand, unexpected policy shifts, geopolitical tensions affecting overseas expansion, raw material price volatility, and intensifying competition.