Navigating the Shift: From Policy Dependence to Value Creation in the Energy Storage Sector

From Policy Dependency to Value Creation: The Breakthrough Battle for Energy Storage Companies

At the beginning of 2025, with the implementation of Document No. 136, the market-oriented reform of renewable energy grid prices officially commenced, marking the end of mandatory energy storage requirements. This pivotal document has transformed the entire energy storage industry, prompting business owners to reassess energy storage systems. They are now viewed not merely as a policy cost but as a significant investment that requires careful financial planning.

This shift is forcing energy storage companies to transition from a reliance on policy to a focus on value creation. The technological foundation is increasingly determining the success of these companies. Many small integrators that once thrived on enforced storage policies are now facing elimination, while firms with core technologies are seizing new opportunities.

Commercial Energy Storage Needs Economic Model Reconstruction

With the adjustment of time-of-use pricing policies, the arbitrage opportunities for energy storage projects that rely on peak and off-peak pricing have been severely curtailed. For instance, in Jiangsu Province, the new time-of-use electricity price has been reduced to approximately 0.6 yuan/Wh, leading to an internal rate of return (IRR) dropping below 6% and a static payback period exceeding 10 years. Owners are now questioning, “Is the electricity savings enough to cover the battery costs?”

At the same time, provinces such as Hunan, Sichuan, and Shandong are refining time periods (for example, adding midday low-peak or peak periods), which requires energy storage systems to enhance their response speed and scheduling flexibility. Otherwise, the arbitrage opportunities will significantly diminish. In this context, commercial energy storage is undergoing fundamental changes. The singular profit from price differentials is no longer sufficient to cover the entire life-cycle cost, and the economic model of energy storage urgently needs to be reset. Companies lacking diversified profit strategies will face severe challenges in the marketplace. Only through technological innovation and realization of multi-scenario revenue can commercial energy storage truly achieve dual value in economics and green development.

Given the complex electricity usage scenarios, stringent environmental requirements, and ongoing cost pressures, a storage system that balances long cycle life with comprehensive safety has become crucial for companies looking to succeed. Keda’s 125kW/233kWh commercial energy storage system exemplifies a versatile solution centered on long-term economic viability and multi-value creation. This system employs a highly integrated design, making it perfectly suited for various settings such as factories, hotels, charging stations, and shopping malls. Its built-in STS switch supports automatic switching between grid-connected and off-grid modes within milliseconds and features intelligent generator linkage, which automatically starts and stops diesel generators during grid anomalies to ensure continuous power supply for critical loads. Coupled with flexible expansion capabilities, it effectively meets complex electricity demands.

Addressing the primary safety concerns of users, Keda has ingrained safety into its DNA by constructing a comprehensive protection system from the battery cell to the entire unit. The system utilizes CATL LFP battery cells, which are safe and reliable, boasting an extended cycle life of 10 years. The battery cell modules, certified by UL9540A, are complemented by a dual fire protection system and efficient smart air/liquid cooling technology, ensuring full operation even in high-temperature environments of 45°C, eliminating safety hazards from within.

In terms of technological integration and intelligent management, the system features a self-developed 3S system that ensures high compatibility and operational reliability among all components. Its integrated energy management system (EMS) with an open API interface offers users flexible energy access and management solutions. This robust technical foundation allows it to support both distributed and centralized installations, adapting seamlessly to various deployment environments. Additionally, the comprehensive design from transportation and installation to maintenance provides users with a hassle-free experience.

The Race for All-Scenario Energy Storage Begins

As the share of renewable energy rapidly increases, the grid’s requirement for primary frequency modulation capabilities from renewable energy stations continues to escalate, with increasing scrutiny. Simultaneously, the inherent volatility and intermittency of renewable energy are further amplified in a market-driven environment—leading to severe price fluctuations, and even negative pricing, during peak generation periods, creating significant uncertainty for project revenues. In this context, energy storage, with its rapid response and flexible adjustment capabilities, has become a key support for balancing renewable energy generation fluctuations and ensuring grid stability. By participating in frequency modulation and peak shaving auxiliary services, energy storage can effectively smooth out renewable output curves, reduce curtailments, and leverage price arbitrage for income, significantly enhancing the overall economic viability and risk resilience of renewable projects, thereby driving the renewable energy sector towards a high-quality and sustainable future.

Moreover, as the energy storage market continues to deepen, the competitive landscape is rapidly evolving from a focus on “single-track deep cultivation” to “building all-scenario capabilities.” Companies with cross-scenario technical integration abilities are achieving breakthroughs through “hardware standardization + software scenarioization,” thereby creating a comprehensive ecosystem that spans the generation side, grid side, and user side. At the SNEC ES+ 2025 International Energy Storage Exhibition held on October 10, Keda showcased its full matrix of products. In response to the stringent demands for efficiency and responsiveness from both the generation and grid sides, Keda launched its GSE3600D outdoor energy storage inverter and GSE7200D-MV energy storage boosting unit. These products utilize a three-level topology PCS design, achieving a maximum efficiency of over 99% and enabling rapid charging and discharging switchovers within 30 milliseconds, precisely responding to grid dispatch directives. Their integrated design and strong environmental adaptability allow them to operate stably under various climatic conditions across the country, providing reliable support for renewable energy station grid connections and grid frequency modulation.

On the user side, as distributed photovoltaics become more widespread and household electricity demands evolve, the household energy storage market is experiencing rapid growth. Keda’s smart home energy solutions are capitalizing on this trend, offering options such as single-phase and three-phase solar storage hybrids. The products are available with CATL and Yiwei Lithium Energy LFP battery cells, which are safe and reliable, promising 10 years of performance assurance, effectively addressing core safety and longevity concerns for household users. Their innovative plug-and-play design significantly lowers installation barriers, with built-in EMS supporting off-grid and grid-connected operation modes, and a modular structure that facilitates future expansions, truly realizing a new experience in household energy management that is “easy to install, smart to use, and flexible to expand.”

Additionally, as a leading player in the domestic UPS industry, Keda’s renewable energy UPS solutions exhibit exceptional environmental adaptability, meeting a wide operating temperature range from -30°C to 60°C. Key components undergo special protective treatments, supporting automatic startup and unattended operation to provide uninterrupted power supply for various critical loads.

In addition to its impressive achievements in the renewable energy storage sector, Keda also demonstrates robust capabilities in the data center business segment. Leveraging a full range of high-reliability products, its data center solutions can be widely applied across key industries such as finance, telecommunications, internet, government, rail transportation, industrial manufacturing, electricity, healthcare, and education.

Accelerating Global Expansion

While refining its full-scenario product matrix, Keda is also advancing its global strategy, promoting Chinese smart energy storage solutions in international markets. With deep technological expertise in power electronics and precise insights into global market needs, its energy storage business has expanded to regions including Europe, Asia-Pacific, and Africa, with Europe being a core overseas market, and actively exploring emerging markets in the Middle East, Southeast Asia, and Africa.

In terms of sales strategy, Keda employs a dual-drive model of “projects + channels” to strengthen core channel development through its global customer network, supporting the growth of high-quality clients. After years of deep cultivation in Europe, Keda has distinguished itself with innovative technology, high-quality products, and a comprehensive localized service system. Its BluePulse commercial energy storage products are precisely aligned with European market demands, supporting photovoltaic integration, battery storage, and featuring grid-connected and off-grid switching capabilities. They possess advantages such as easy integration, long lifespan, high safety, ease of deployment, and flexible expansion, making them applicable in scenarios such as backup power, peak shaving, and frequency modulation, thereby effectively facilitating the local energy structure transformation and upgrading.

Currently, this product has been deployed in various projects, including a 1MW/2MWh commercial energy storage station in Slovenia, a 600kW/1.2MWh commercial energy storage station in Spain, and a 200kW/400kWh & 1MW/1.72MWh commercial energy storage station in Ukraine.

Amid the wave of renewable energy transformation, Keda continues to provide intelligent, reliable, and efficient comprehensive energy solutions for global users, driven by its profound technological accumulation, complete product matrix, and global strategic layout, leading the industry towards a brighter future.