Lin Yang Energy: Empowering the Upgrade of the Entire Energy Storage Value Chain
As we approach 2024, the installed capacity of new energy storage is expected to exceed 73 million kilowatts, representing a year-on-year growth of over 130%. However, industry professionals are finding it increasingly difficult to turn a profit. Over the past year, the energy storage industry has continued to struggle amidst a stark contrast of opportunities and challenges. According to data from North Pole Energy Storage Network, the price of energy storage systems in the domestic bidding market has dropped to approximately 0.4-0.5 yuan per watt-hour, while the price of lithium iron phosphate batteries has fallen to about 0.3 yuan per watt-hour, marking a dramatic decline of 60-70% in just two years.
In response to the rapidly changing demands of the energy storage market, Lin Yang Energy has introduced a unique strategy. On one hand, the company is leveraging 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, taking advantage of the opportunities presented by Document No. 136, Lin Yang has laid out a comprehensive strategy to engage in the entire energy storage value chain, positioning itself as a “system integrator” that plays a significant role in leading industry innovation.
According to Dr. Zeng Fanpeng, CTO of Jiangsu Lin Yang Energy Technology Co., Ltd., Document No. 136 is not a sword of Damocles hanging over the industry; rather, it is a crucial turning point that encourages the entire sector to shift from a price orientation to a value orientation. This pivotal change is expected to usher in a new phase of high-quality development for the industry. He noted that the space for further price reductions is now minimal. At the recent “2025 China Energy Storage Technology Innovation Application Seminar,” Dr. Zeng elaborated on two reasons for this assessment: first, the overall production capacity of battery manufacturers has reached saturation, and profit margins are nearing rock-bottom; second, the levelized cost of energy (LCOE) for integrated wind and solar storage is now competitive with traditional energy sources.
If market supply and demand dictate prices, the overall production capacity in the energy storage sector is currently balanced. However, continued expansion of capacity may lead to a path of overcapacity similar to that seen in wind and solar industries. Notably, the LCOE for new energy storage has already dropped to 0.2-0.3 yuan per kilowatt-hour, with some integrated solar-storage projects in specific regions even falling below local benchmark electricity prices, enhancing their competitive edge against traditional energy sources.
Dr. Zeng emphasized that the shift in energy storage development from price to value orientation is vital, particularly regarding its future role in the new power system, which reflects the true value of energy storage. In this context, the integration of energy storage within wind and solar energy facilities serves two primary functions: reducing curtailment and increasing the consumption of renewable energy, as well as providing essential peak-shaving and frequency regulation capabilities that allow renewables to support the grid.
Under the current model, the pathways for creating value from energy storage also include participating in ancillary services for peak-shaving and frequency regulation, as well as engaging in the electricity market to capitalize on price differentials. “With the comprehensive advancement of large wind and solar bases and the rapid development of customer-side storage, future projects will increasingly focus on grid-side frequency regulation and applications in commercial and industrial sectors,” Dr. Zeng stated.
Lin Yang Energy is actively addressing diverse market demands by pushing forward with multiple business lines, including shared energy storage stations for large wind and solar bases, grid-side storage in response to electricity market reforms, and commercial and industrial storage solutions for customer-side applications. The company is also harnessing AI to optimize system control and enhance economic viability and flexibility throughout the lifecycle of energy storage systems.
AI Empowerment in Energy Storage Systems’ Lifecycle Management
As the landscape evolves, how can AI be effectively utilized? Dr. Zeng highlighted that with the open-source nature of AI and its increasing accessibility, Lin Yang has developed a comprehensive lifecycle health management framework for energy storage systems through the integration of digital twin technology and edge intelligence. This framework’s underlying logic involves merging AI with digital energy storage solutions, leveraging data from battery currents, voltages, temperatures, and innovative technologies to achieve heightened discharge efficiency, optimal investment, simplified operations, and enhanced safety throughout the entire lifecycle of the storage system.
“The widespread adoption of AI presents a comprehensive upgrade to our R&D framework, effectively reconstructing it,” Dr. Zeng noted. He provided examples of how the development cycles for Energy Management Systems (EMS) and algorithms have shortened, leading to reduced costs and the ability to swiftly adapt to market changes, especially in areas requiring immediate control and multi-objective optimization. During the operational phase, various AI algorithms can be simulated to explore avenues for enhancing energy station profits, an area that Lin Yang is increasingly focusing on.
Currently, as a leading provider of intelligent energy storage systems and solutions, Lin Yang’s large-scale energy storage stations and integrated commercial storage systems are fully integrating AI. Success stories include projects in Qidong, Jiangsu (160MWh) and Wuhua, Anhui (1.08GWh). Their innovative “3S Fusion New Energy Storage System Solution” achieves intelligent management across the entire chain from battery production to power station operation through the three-dimensional collaboration of hardware, data, and AI models, significantly enhancing system safety and economic performance, thereby leading the industry towards high-quality development.
Driving Innovation and Transformation Across the Industry Chain
History often reveals striking similarities. By the end of 2024, it is projected that domestic wind and solar power installations will exceed 1.4 billion kilowatts, achieving the target of having over 1.2 billion kilowatts of total installed capacity for wind and solar power by 2030—six years ahead of schedule. This achievement can be attributed to the continuous expansion of the domestic renewable energy market and the increasingly refined industry chain, coupled with significant technological innovations, industry integration, and international expansion efforts by Chinese wind and solar manufacturers.
In light of the comprehensive elevation of energy storage application scenarios and business models, system integrators are now playing a deeper role in driving transformative innovation across the industry chain. “From Lin Yang’s perspective, there are three critical focal points for future efforts: first, key technologies in the long-term application of systems, such as safety, availability, and intelligence,” Dr. Zeng explained. “Secondly, we aim to extend the industry chain downstream, building data analysis and intelligent operation maintenance capabilities, and utilizing AI to achieve in-depth insights into efficient operations, thereby positioning ourselves in the post-operation maintenance market for energy storage.” Third, he added, is the ability to provide a comprehensive suite of solutions that unlocks global business opportunities, enabling domestic energy storage enterprises to gain an early advantage in moving beyond domestic competition to an international scale.
Data shows that Lin Yang has achieved full industry chain cooperation from upstream battery cell production to downstream energy storage station construction and operation maintenance, thanks to its joint venture with Yiwei Lithium Energy for 10GWh of lithium iron phosphate battery production capacity, an annual production capacity of 6GWh for energy storage packs and systems, and subsidiaries with EPC qualifications and renewable energy operation services. This creates a unique integrated management and operational advantage and core competitive strength.
