CITIC Construction Investment: The era of energy storage is expected to usher in a qualitative change for concentrated solar power generation.

Citic Securities believes that concentrating solar power, as a highly stable renewable energy source, is of great significance for the construction of a new power system; in recent years, the newly installed capacity of concentrating solar power has increased significantly, but the base is still relatively small, and the industry has great development potential. By the end of 2024, China's accumulated concentrating solar capacity reached 838.2MW, and from 2021 to 2024, China added 300MW of concentrating solar capacity, compared to the annual target of 3GW, indicating that the industry still has vast development space. Since the development of China's concentrating solar industry in 2016, the installed capacity of concentrating solar energy has shown significant fluctuations in different years, mainly due to the lack of economic viability of concentrating solar power, policy uncertainties related to electricity prices causing fluctuations; our calculations show that under the current concentrating solar electricity price policy in Qinghai Province, concentrating solar power has preliminary economic viability. From the distribution of value of concentrating solar systems, concentrating systems, heat absorption systems, thermal systems, and thermal storage systems account for a large proportion of the value.