Colin Electric Ventures into Energy Storage: Strategies for Tapping Market Opportunities

Colin Electric Expands into Energy Storage: How Will It “Open Up” Market Opportunities?

From April 10 to 12, the 13th International Energy Storage Summit and Exhibition (ESIE 2025) took place in Beijing, where Colin Electric showcased a range of energy storage products. Just days prior, the company signed a contract with the Maldives Ministry of Tourism and Environment for the EPC general contracting of a 38MWh energy storage system, valued at nearly 130 million RMB.

Founded in 2000 and based in Shijiazhuang, Colin Electric is a well-established player in the electrical industry, having developed three main business areas: smart grids, renewable energy, and integrated energy services. Why is Colin Electric venturing into energy storage? In a market already embroiled in fierce price competition, how does the company plan to carve out its own niche?

In an interview with Hua Xia Energy Network, Zhang Dong, General Manager of Colin Electric’s New Energy Business Unit (BU), shared insights into these questions.

Strengthening Power Distribution and Expanding Renewable Energy

“Our current development goals are to strengthen power distribution and expand renewable energy,” said Zhang Dong. Colin Electric originally focused on grid operations, offering comprehensive automation equipment for the power industry, public utilities, and large industrial clients, providing complete solutions and high-quality products and services.

Last year, the New Energy BU was formed by merging the previous New Energy Department and the Integrated Automation Department. Energy storage represents a crucial segment for this unit, focusing mainly on user-side energy storage while also supporting source-side storage, charging stations, and other renewable energy products.

Zhang explained that the company’s move into energy storage aligns with the global energy transition and the ongoing reform of China’s electricity market. The acceleration of the energy transition offers significant growth opportunities for the energy storage industry. With the continuous increase in new energy installations under China’s dual carbon goals, the intermittent and volatile nature of renewable energy presents challenges to grid stability. Energy storage acts as a “regulator” within the power system, enhancing grid resilience and compensating for the limitations of renewable energy generation.

Furthermore, the reforms in the power market have paved the way for diversified business models in energy storage, broadening its profit potential. Innovations such as time-of-use pricing, ancillary service markets, and capacity leasing are allowing energy storage to demonstrate economic value in scenarios like peak shaving, demand response, and backup power. Particularly in the commercial sector, the increasing penetration of distributed energy shows the growing value of energy storage in reducing electricity costs and ensuring supply reliability, which is why Colin Electric is focusing on commercial storage.

With over 20 years of experience in the power sector, Colin Electric has developed strong technical capabilities in areas like smart substations and distribution network automation, providing a natural advantage for entering the energy storage market. “Our New Energy BU’s products, including integrated AC/DC power supply screens, photovoltaic inverters, and charging station products, are closely related to the core technologies of energy storage systems. Our in-depth research on these devices makes our entry into the energy storage sector a logical step,” Zhang stated.

Colin Electric’s energy storage systems boast a self-manufacturing rate of 90%, covering key components such as Battery Management Systems (BMS), Power Conversion Systems (PCS), Energy Management Systems (EMS), and thermal control systems. This commitment to developing core components independently enables Colin Electric’s energy storage systems to excel in integration, maximizing charge and discharge efficiency while ensuring transformer load safety.

In addition to user-side and source-side energy storage systems, Colin Electric is also expanding into charging stations and integrated photovoltaic storage solutions. Zhang noted that the company is focusing research efforts on integrated source-load-storage systems, low-carbon parks, zero-carbon parks, and virtual power plants to overcome technological bottlenecks. By leveraging photovoltaic storage systems as a business entry point, Colin Electric aims to build a robust foundation in the renewable energy sector. “I am confident in our technical strength and the resources we can leverage, which gives us great assurance in expanding our renewable energy business,” Zhang concluded.

Creating High-Value Products Amidst Price Competition

The current energy storage industry is characterized by intense competition, particularly in the commercial storage sector, where price wars are escalating. In this challenging environment, how can Colin Electric stand out? The answer lies in creating stable, safe, and guaranteed revenue-generating star products that genuinely deliver value to users.

At the ESIE 2025 exhibition, Colin Electric showcased several new products, prominently featuring the Grid-Forming 261kWh liquid-cooled energy storage cabinet. This product is designed for comprehensive application scenarios; it not only generates revenue through peak shaving and price differentials in typical commercial settings but can also integrate with photovoltaic systems and charging stations to enable self-consumption of green electricity, ensuring reliable power supply for high-consumption commercial users.

“At this exhibition, there are many similar products to our 261kWh liquid-cooled energy storage cabinet. This reflects strong market demand but also highlights significant competition. However, our product has distinct advantages,” Zhang emphasized. The Grid-Forming 261kWh cabinet not only benefits from stable performance due to in-house development but also features a self-developed 135kW hybrid energy storage inverter that enhances operational efficiency and control response times, making it an ideal match for the 261kWh energy storage cabinet. Additionally, the proprietary high-performance liquid cooling system and multi-layer battery protection strategies ensure system safety while increasing user profitability.

The Grid-Forming 261kWh energy storage cabinet’s modular design allows for flexible scaling according to user needs. Colin Electric remains composed in the face of the intensifying price competition. Zhang stated, “As the price war has progressed, users’ attitudes have shifted; they are less sensitive to price and more focused on product value and profitability.” On a strategic level, Zhang provided an example with charging stations: “We position our charging station prices between leading brands and secondary manufacturers, yet our quality competes with the top brands. Moreover, our service system is well-developed, which has contributed to strong sales.”

Looking ahead, Zhang is particularly optimistic about the prospects for integrated photovoltaic storage and microgrid applications. The recently signed 38MWh energy storage system EPC contract with the Maldives Ministry of Tourism and Environment is part of a microgrid project. Southeast Asia has become a popular region for domestic energy storage companies to expand internationally. The region’s fragile power grids and numerous islands make it challenging to achieve comprehensive electricity distribution like in China, resulting in many off-grid projects where microgrids can play a crucial role. Zhang stated, “In the future, our domestic and international markets will grow simultaneously, jointly driving the development of our energy storage business.”