Energy security fears drive global surge in orders for Chinese storage firms
In the first two weeks of June, Contemporary Amperex Technology Co Limited (CATL) bagged a combined 5.4 GWh of storage orders
The lingering energy shock is driving overseas orders for China’s energy storage companies, with more than 25 gigawatt-hours (GWh) of capacity to be built in the US and European countries.
The global demand for energy storage facilities has been driven by disruptions to oil and gas supply chains stemming from the Middle Eastern conflicts and the urgent need by developed markets to upgrade ageing grids, according to Matty Zhao, co-head of China equity at BofA Global Research.
Regardless of the recent US-Iran agreement to end the war, “governments realise they need structural energy security,” said Zhao, adding that it would push the governments of the US and Europe to allocate more funding for energy storage in the coming years.