China Recycling Energy (CREG) said that its subsidiary Shanghai TCH Energy Technology has entered into a Letter of Intention (LOI) to acquire 20% stake in energy storage firm Xi’an Xinhuan Energy by issuing new shares of CREG.
The Company and Xinhuan will make joint efforts to develop energy storage business in China.
In the context of the national efforts to promote the development of energy storage industry, the energy storage industry has ushered in a golden decade of development.
The Chinese government encourages energy storage enterprises to become larger and stronger in order to compete internationally, and promotes the large-scale development of energy storage industry.
The energy storage industry, firstly as the “first aid” to the grid at the critical moment to provide backup power supply and reduce the risk of power outage; secondly as an “energy sponge” to store power during electricity peak-off hours and release during peak hours to fill the gap; thirdly as the ‘flexible energy resource’ of the power system to guarantee the stable operation of the power grid and provide a new green means to alleviate the problems between power supply and demand.
Xinhuan provides the standard module energy storage system of MW-level “reserving – storing – supplying”. The system includes power station management system (BMS), energy management system (EMS), GW core PACK integration system, intelligent “cloud” operation management system and other core energy storage technologies.
Meanwhile, a series of advanced system solutions, such as power generation side concentrated energy storage power supply solutions, smart micro grid and industrial and commercial power supply, are introduced and used in this system.
The standardized energy storage system module designed by Xinhuan can respond to user demand easily and quickly. It can also be assembled into energy supply system of various power and capacity according to the different requirements to meet various market demands and applicable to various application fields.
The system module can be used independently or combined into large megawatt energy storage systems. The energy storage module adopts the international standard container, which is convenient for transportation, site installation and quick use.
China Recycling Energy board of directors chairman Ku said: “We are excited about the opportunity to acquire ownership of Xinhuan, which is an important step for our energy storage business. With the driving force of market demand and policy support in China, the energy storage industry will have a large probability of explosive growth and provide exciting development of this business.
“For the energy storage business in China, Xinhuan has taken the lead by investing and constructing several power storage projects. Its standardized, fast, low cost, high safety and flexible energy storage solutions are bound to attract more and more business and investment opportunities.
“With this acquisition of minority position of and cooperation with Xinhuan, we plan to quickly grow our energy storage business and take the market shares in the energy storage industry, which will bring new sources of revenues to the Company and benefit the environment.”
Source: Company Press Release