Lin Yang Energy Storage: Empowering the Upgrading of the Entire Energy Storage Value Chain
As we approach 2024, the new energy storage installed capacity is set to exceed 73 million kilowatts, marking an impressive year-on-year growth of over 130%. However, industry participants are lamenting the challenges of profitability. The past year has seen the energy storage industry struggling, caught between extremes of opportunity and difficulty. According to data from Beijing Polaris Energy Storage Network, the current bidding prices for energy storage systems in the domestic market have fallen to around 0.4-0.5 yuan/Wh, while lithium iron phosphate battery prices have dropped to approximately 0.3 yuan/Wh, reflecting a decline of 60-70% over just two years.
To navigate the challenges of balancing cost, safety, and quality—a dilemma often referred to as the “impossible triangle”—Lin Yang Energy Storage is highlighting its competitive advantages. On one hand, the company employs AI to enhance six core elements of new energy storage: high safety, long lifespan, high efficiency, low degradation, intelligence, and high returns. On the other hand, leveraging the opportunities presented by Document No. 136, they are comprehensively positioning themselves throughout the entire energy storage value chain while taking on the critical role of a “system integrator” in leading industry innovation.
Dr. Zeng Fanpeng, CTO of Jiangsu Lin Yang Energy Technology Co., believes that Document No. 136 is not a sword of Damocles for the energy storage sector but rather a pivotal opportunity to shift the entire industry from a price-driven approach to one focused on value. This transformation is essential for ushering in the next stage of high-quality development in the industry. He pointed out two reasons for this industry shift during the recent “2025 China Energy Storage Technology Innovation Application Seminar”: first, the overall capacity of battery manufacturers is nearing saturation, with profit margins resting at the edge of viability; second, the levelized cost of electricity (LCOE) from integrating wind, solar, and storage now holds a competitive advantage over traditional energy sources.
While market supply and demand dictate prices, the overall capacity of the energy storage industry is currently in a reasonable state of supply and demand. Continuous capacity expansion could lead to a surplus similar to that seen in the wind and solar sectors. As for electricity prices, the LCOE of new energy storage has already reached 0.2-0.3 yuan/kWh, with some integrated solar and storage projects in certain regions falling below local benchmark price levels, thereby enhancing their competitive edge.
Dr. Zeng emphasizes that the transition from a price-driven to a value-driven model in energy storage is crucial, particularly regarding its future role in the new power system. In this context, energy storage plays two major roles: reducing wind curtailment and increasing the absorption of renewable energy, while also providing excellent peak regulation and frequency adjustment capabilities, allowing renewable energy to support the grid rather than merely adapt to it.
In the existing model, the value creation pathways for energy storage also include participating in frequency regulation for ancillary service compensation and engaging in peak shaving and valley filling in electricity markets to capitalize on price differentials. “With the comprehensive promotion of large-scale wind and solar bases and the rapid development of user-side energy storage, future projects will increasingly focus on grid-side frequency regulation and commercial and user-side applications,” Dr. Zeng stated. “Energy storage is not simply about energy transfer; a singular function cannot fully capture its true value. In the future, the market will assign different value spaces to energy storage based on its various roles.”
Currently, Lin Yang Energy Storage is actively expanding its business across multiple lines to meet diverse market demands. This includes shared energy storage stations aimed at large wind and solar bases, grid-side storage in response to electricity market reforms, and user-side commercial energy storage. Additionally, the company is leveraging AI to optimize system control through lifecycle operation technology, enhancing system economy and flexibility, and promoting a deeper integration of energy storage with the electricity market.
AI Empowerment for Full Lifecycle Management of Energy Storage Systems
So, how can AI be harnessed in this new landscape? Dr. Zeng points out that with the open-source nature of AI and its ongoing technological proliferation, Lin Yang has integrated digital twin technology with edge intelligent terminals to establish a comprehensive health management framework for energy storage systems throughout their lifecycle. The underlying logic of this framework is to use AI to merge digital energy storage solutions with data-driven insights, employing innovative technologies such as battery current, voltage, temperature data, digital management, and fully modular designs to achieve superior discharge efficiency, optimal investment, simplified operations, and robust safety throughout the lifecycle of energy storage systems. This approach addresses the limitations of traditional Battery Management Systems (BMS) in monitoring and balancing control.
“The proliferation of AI has a transformative impact on our R&D framework, essentially reconstructing it,” Dr. Zeng noted. He explained that for more flexible applications, the development cycles for Energy Management Systems (EMS) and algorithms have shortened, leading to reduced costs. The ability to respond swiftly to market changes, particularly in real-time control and multi-objective optimization, is faster and more effective with AI compared to manual processes. During the operational phase, AI’s various simulation algorithms can explore ways to enhance plant profitability, a key focus for Lin Yang moving forward.
As a leading provider of intelligent energy storage systems and solutions, Lin Yang Energy Storage is fully integrating AI into its large-scale energy storage plants and commercial energy storage systems. Their innovative “3S Fusion New Energy Storage System Solution” achieves intelligent management across the entire chain—from battery production to power plant operation—through the three-dimensional collaboration of hardware, data, and AI models. This significantly enhances both system safety and economic efficiency, setting a benchmark for high-quality development within the energy storage sector.
Driving Industrial Chain Transformation and Innovation
History often reveals striking similarities. By the end of 2024, domestic wind and solar power installations are expected to exceed 1.4 billion kilowatts, achieving the goal of having over 1.2 billion kilowatts of wind and solar power installed in China by 2030—six years ahead of schedule as promised at the Climate Ambition Summit. This achievement can be attributed to the continuous expansion of the domestic renewable energy market and the increasingly refined industrial chain, as well as the technological innovations, industry consolidation, and international strategies of Chinese wind turbine and solar module manufacturers.
Now, as energy storage applications and business models undergo a significant value transformation, system integrators are taking on a more profound role in driving industrial chain innovation. “From Lin Yang’s perspective, there are three key focus points for future efforts: the critical technologies needed for long-term application—such as safety, availability, and intelligence,” Dr. Zeng explained. “The second focus is extending the industrial chain towards the backend by building data analysis and intelligent operation capabilities to deeply explore efficient operations using AI technology, thus positioning ourselves in the post-operation market service for energy storage.” The third focus is on leveraging comprehensive solution capabilities to expand global business, enabling domestic energy storage ecosystem firms to gain a first-mover advantage in entering international markets.
According to data, Lin Yang Energy Storage has established a collaborative industrial chain from upstream battery cells to downstream energy storage plant construction and operation, thanks to its partnership with Lin Yang Energy and EVE Energy, which provides a dedicated production capacity of 10GWh for lithium iron phosphate battery cells, along with a wholly-owned company that has an annual production capacity of 6GWh for energy storage packs and systems. With its EPC qualification and renewable energy operation service capabilities, Lin Yang Energy Storage has developed integrated management and operational advantages and core competitive strengths.
