EnergyTrend recently reported that Narada Power, on September 7th, announced its intention to invest in the project with the annual production capacity of 4GWh. This strategic move aims to bolster the company’s energy storage system production scale. Narada Power is capitalizing on favorable market development opportunities within the electric power energy storage sector, aligning with its continuous growth in order demand. Simultaneously, the company is tapping into the flourishing China’s northwest energy storage market to boost its market share and competitiveness. Their plan includes investing in a 4GWh annual production capacity project for energy storage batteries and integration.
Announcement Details of Narada Power’s Project
Narada Power’s recent announcement outlines their foreign investment initiative, which is geared towards amplifying the production scale of their energy storage systems. This strategic move is designed to capitalize on market opportunities within the electric power energy storage sector. By doing so, the company can effectively meet the ever-growing demand for orders, while also seizing the opportunities presented by the thriving energy storage market in China’s northwest region. This, in turn, will further bolster the company’s market share and competitive edge.
According to previously disclosed research information from Narada Power, the company is making significant strides in expanding its production capacity. In the first half of 2023, Narada Power successfully completed the construction of a 3GWh lithium energy storage battery and integrated systems with a 3GWh capacity. Currently, their existing annual capacity includes 10GWh for lithium-ion batteries dedicated to energy storage and 10GWh for system integration. Additionally, they have a 4GWh lithium-ion battery capacity for energy storage currently under construction. Furthermore, they initiated a new project focused on intelligent energy storage systems with a 10GWh annual capacity at the end of June.
Narada Power’s Performance in the First Half of 2023
Narada Power maintains a strong focus on energy storage applications, offering comprehensive products, solutions, and operational services centered around lithium-ion and lead batteries. Their industrial integration spans from raw material recycling to system integration.
As per their recent announcement, Narada Power has successfully completed the construction of 300-400 power station projects, accumulating extensive project experience and a profound understanding of energy storage. Their new power energy storage business has achieved significant scale in user-side, grid-side, and power generation applications. Furthermore, their global installed energy storage capacity now surpasses 6GWh, placing them at the forefront of the industry.
In the first half of 2023, Narada Power celebrated a remarkable milestone in both revenue and profit. Their revenue for this period reached 7.895 billion yuan, marking a substantial year-on-year increase of 40.11%. Without the non-net profit of 285 million yuan, we can see an impressive year-on-year increase of 594.44% of its revenue. Notable highlights include power energy storage revenue amounting to 2.419 billion yuan, showcasing a remarkable year-on-year growth of 494.75%, with a gross profit margin of 19.24%—an increase of 3.54% year-on-year. Similarly, industrial energy storage revenue reached 1.755 billion yuan, experiencing a slight year-on-year growth of 0.31% but with an improved gross profit margin of 20.12%, an increase of 3.48% year-on-year. Quarterly, the company’s performance shines consistently throughout 2023, with the first quarter achieving a profit of 100 million yuan and the second quarter of 200 million yuan. Remarkably, even with a minor difference in operating income size, the profit margin has doubled quarter-on-quarter.
Narada Power attributes its profit growth to the increasing profits driven by the rise in revenue from the company’s large-scale power energy storage endeavors. Coupled with Narada Power’s extensive project experience, mature technologies, and integrated cost control measures, it is poised to further boost its profitability. Additionally, leveraging its advantages in global sales and service integration, Narada Power has witnessed a continuous improvement in market recognition and performance as it expands its market presence. As the energy storage business continues to evolve, the company anticipates a steady improvement in overall profitability.
Core Competitiveness of Narada Power’s Energy Storage Business
In 2023, the global energy storage market is poised for continued growth in both size and demand. Narada Power remains committed to developing energy storage markets in key countries worldwide, with a strategic focus on enhancing overseas service centers in Europe, North America, Japan, and South Korea. This approach will further strengthen the company’s global sales and service integration, deepening strategic collaborations with prominent domestic and international large-scale energy developers and equipment integrators. Narada Power has expressed confidence in its current order volume, with cumulative orders exceeding 6GWh in the first half of 2023.
Viewed from the perspective of the international market, breaking into the global power generation group’s supplier system is a challenging endeavor, often requiring a significant investment of 2-3 years to secure the necessary access certifications. Narada Power, however, has successfully obtained safety certifications and project verifications in numerous countries spanning North America, Europe, South Korea, and Japan. This achievement is a testament to the company’s ability to meet the stringent requirements across various segments of the industrial chain. Notably, Narada Power’s energy storage power station project in Germany has garnered global recognition, serving as a prominent demonstration project on a worldwide scale. Moreover, establishing collaborative relationships with most customers typically necessitates a time frame of three to five years, as overseas clients tend to exhibit stronger loyalty due to the higher costs associated with changing suppliers. Currently, Narada Power boasts a roster of key clients, including EDF, Enel, and prominent American energy companies.
From a technical perspective, the heart of the energy storage business lies in guaranteeing the comprehensive safety of the system and the durability of the battery. Narada Power embarked on the journey of constructing large-scale energy storage power stations since 2010 and has managed over 50 energy storage demonstration projects, both domestically and internationally. This extensive experience includes the operation of power stations that have run successfully for more than a decade. Notably, Narada Power has played an active role in shaping the development of domestic and international technical standards within the energy storage industry by participating in their drafting.
Simultaneously, leveraging its industry-leading energy storage battery technology, Narada Power is at the forefront of advancing the commercialization of energy storage. Through years of exploration and expansion, the company has honed its comprehensive technical capabilities, encompassing scheme design, system integration, operation and maintenance, as well as source-grid-load-storage integration. This has led to the widespread adoption of its products across various scenarios, spanning the main network, grid, and users. Narada Power’s energy storage business boasts a wealth of experience in ensuring system safety, spanning from the design and construction of power stations to installation, operation, and maintenance. Concurrently, the company remains at the forefront of cutting-edge energy storage technology, maintaining a sharp focus on research and development and technical innovation. This forward-thinking approach has led to extensive preparations in multiple fields, including hydrogen, sodium batteries, quasi-solid-state batteries, and other emerging technologies.
In terms of cost control, Narada Power has achieved full vertical integration within the entire industrial chain, from raw material recycling to integrated product offerings. This strategic positioning provides the company with a competitive advantage in cost management. Therefore, it can ensure the supply of raw materials for its products to enhance the profitability of the company’s business.