The new energy sector has recently welcomed a heavyweight "cross-industry player." A tender notice for the Wuliangye Industrial Park Energy Storage Station Project was recently published on the Yibin Public Resource Trading Platform. The 10MW/20MWh energy storage project, backed by Sichuan Zhongxin Green Energy Co., Ltd. with an investment of 16 million yuan, is set to open bidding for its design and construction contract on December 1.

Notably, Sichuan Zhongxin Green Energy Co., Ltd. is a joint venture between Wuliangye New Energy Investment Co., Ltd. and PetroChina, with Wuliangye holding a 51% controlling stake. This ownership structure indicates Wuliangye’s strategic intent to lead in the new energy sector rather than merely participate.

**Wuliangye’s Planned Move into New Energy** The project, located in Cuiping District, Yibin, Sichuan, will be built adjacent to the Jiusheng 110kV substation. It includes a 10MW/20MWh centralized electrochemical energy storage system, featuring two 5.015MWh lithium iron phosphate battery cabins and two 5000kW/10kV energy storage converter-booster units. The system will connect to the substation’s 10kV distribution room.

This is not Wuliangye’s first foray into new energy. In April 2023, the company established Wuliangye New Energy Investment Co., Ltd. with a registered capital of 1 billion yuan, focusing on emerging energy technologies, energy management, and related sectors. By August 2023, Wuliangye partnered with PetroChina to form Sichuan Zhongxin Green Energy, targeting solar, energy storage, hydrogen, and charging infrastructure.

In February 2025, Wuliangye deepened its commitment by teaming up with LONGi Green Energy to establish Yibing Yingfa Derui Technology Co., Ltd., a 1-billion-yuan joint venture specializing in photovoltaic equipment and solar power services.

**Why New Energy?** Wuliangye’s pivot aligns with Yibin’s transformation from a liquor hub to a new energy powerhouse. Since CATL’s arrival, Yibin has attracted over 110 new energy projects, totaling 270 billion yuan in investments and projected output exceeding 500 billion yuan.

**Strategic Motivations** 1. **Cost Reduction**: Liquor production is energy-intensive. Energy storage can cut electricity costs by 10%–15% through peak shaving. 2. **Policy Alignment**: National initiatives like the "New Energy Storage Scale-Up Action Plan (2025–2027)" encourage green transitions, offering Wuliangye regulatory advantages. 3. **New Growth**: Facing slowing liquor sales, Wuliangye sees energy storage as a revenue stream through grid services like frequency regulation.

**Industry Trend** Wuliangye isn’t alone. Among 2024’s "World’s Top 500 Brands," 28 Chinese firms—including State Grid, Kweichow Moutai, and Xiaomi—are expanding into energy storage. Moutai invested in energy storage tech firm Jiasilicon, while Haier’s subsidiary Navitas New Energy covers commercial and residential storage. Even Acer entered the market by acquiring an 11% stake in lithium battery maker Longli Tech.

**Market Boom** CITIC Securities reports China’s energy storage sector has hit an economic inflection point, with installations expected to reach 300GWh in 2026. By July 2025, national new energy storage capacity hit 96.7GW, a 30-fold increase from 2020. The government aims for 180GW by 2027, driving 250 billion yuan in investments.

**Challenges Ahead** Despite growth, risks loom: - **Safety**: Over a dozen global storage fires occurred in H1 2025, including incidents at U.S.’s Vistra Energy and South Korea’s Gangjin County. - **Profitability**: Long payback periods and reliance on volatile grid service revenues strain margins. - **Competition**: Over 200,000 new energy storage firms registered from 2021–2024, but 30,000 have already exited.

**Outlook** Energy storage is shifting from a supporting role to a central player in energy transition. However, only firms with strong technology, capital, and strategic patience will endure the coming industry shakeout.