At the Central Financial Work Conference, General Secretary Xi Jinping proposed to accelerate the creation of stronger financial power by promoting the “five points” strategy: scientific and technological finance, green finance, inclusive finance, pension finance, and digital finance. In order to fully grasp the political and personal nature of this financial work in depth, he also outlined the proper direction for promoting the high-quality development of the financial sector.

It is important to fully cover these five points in order to serve the real economy and ensure high quality development. JIC Leasing has been actively expanding in the green and inclusive finance industries, continuously promoting the development of the energy storage business, targeting key customers at emerging industries, transforming its business model towards direct and operational leasing, and gradually changing its profit model towards “interest margin + asset return”, in order to ensure the improved selection and management of leasing items.

Energy Storage Is Becoming the Key Substance of the New Power System by Breaking Bottlenecks

Against the background of the country’s “dual carbon” goals, clean energy is beginning to thrive, with photovoltaic and wind power energy the two most prominent forms. As the overall coverage of clean energy continues to grow, it also has a certain impact on the safe and stable operation of the power grid due to its inherent unstable power characteristics. In order to balance the supply and demand of the grid, and to increase the utilization of clean energy, energy storage has become an indispensable link to improve the security, reliability, flexibility and sustainability of the power system.

Energy storage technology has changed the traditional power industry model, diversifying the balance within the power system. This is why energy storage is also regarded as a strategic support for transforming the future energy structure and changing power production and consumption models.

Depending on the different application scenarios, power energy storage can be subdivided into power side energy storage, grid side energy storage, and user side energy storage, of which the user side energy storage is regarded as the most promising area for development. In terms of user side energy storage, power users purchase, install and use the energy storage equipment themselves in their own space, in order to store and utilize electric energy. These can adjust the peaks and fill the valleys by storing electricity during the low valley hours and releasing it during the peak hours, which can in turn reduce the impact of electricity price fluctuations. In addition, user side energy storage can also provide a continuous and stable supply of electricity as a backup power source in the event of grid failure or blackouts.

Financial Leasing Empowers the Development of Industrial and Commercial Energy Storage by Stabilizing Growth

The industrial and commercial storage of user side energy mainly serves large industrial enterprises and business parks, and JIC Leasing has targeted these locations for building energy storage power stations. By relying on the policy of time-of-use power pricing for industrial and commercial electricity, users can charge during low tariff periods and discharge during peak tariff times. This can help enterprises save electricity costs while also alleviating pressure on the safe operation of the power grid, thus eliminating the spatial and temporal imbalance of the grid, while also shaving the peaks and filling the valleys of the power operating curve.

Industrial and commercial energy storage is a new industry, and has been primarily applied in small and medium-sized enterprises. However, it is limited by its long investment time and heavy asset requirements, while small and micro enterprises will face possible shortcomings in terms of resources, technology, talent and other aspects. This can lead to difficulties in financing due to the high costs involved.

As a new type of financial instrument that combines “financing + leasing assets”, the flexible transaction structure of financial leasing creates a greater “inclusiveness”, serving as a positive force to promote the innovation and upgrading of the real industry. In this way, it can drive the development of emerging industries and broaden the financing channels for micro, small and medium-sized enterprises. Industrial and commercial energy storage is characterized by a mature business model, clear application scenarios, standardized energy storage equipment, and remote technical management approaches, thus demonstrating natural compatibility with the financial leasing model. Financial leasing can connect various participants, including electricity owners, investment operators, equipment manufacturers, and engineering constructors, through direct leasing products. The ultimate goal is to help the manufacturing industry solve the problems of high energy costs, help small and micro enterprise operators solve the problem of long-term asset holding funds, help engineering constructors solve the problem of advancing funds, and help equipment manufacturers solve the problem of equipment sales and repayment. In addition, this model is able to promote equipment upgrades, while also expanding and accelerating fixed asset investment in the new energy field, something which is of far-reaching significance for the safe and stable operation of power grids.

Coordinated Development and Safety for Risk Prevention

China’s energy storage industry is currently displaying a development trend characterized by scale and diversification, with the associated industrial and supply chain coverage continuing to accelerate. Installed global energy storage capacity has increased from 35.8GWh in 2019 to 157.7GWh in 2023, achieving a compound annual growth rate (CAGR) of 44.9%. It is expected that global capacity will continue to maintain a high growth rate from 2023 to 2030, with a CAGR of 40.2%. It is expected to reach 1,677GWh by 2030, with a market size of more than 2 trillion.

Compared with other countries around the world, China’s energy storage equipment can boast a sharper leading edge both in terms of technology and market depth, with the Chinese market alone reaching about 1.3 trillion in 2030. Energy storage, the “new driving force” of economic development, is increasingly becoming the key technology for creating a new energy and power system in China.

Financial leasing can promote the rapid development of the energy storage industry with a focus on direct and operational leasing products. At the same time, it can also fulfill the responsibility of risk prevention as a financial enterprise, maintain vigilance, and coordinate development and safety at a high level. Financial leasing companies need to strengthen their selection of leasing items, enhance the control of energy storage equipment and cash flow, strengthen asset operating capabilities, and improve asset disposal methods and channels, thus realizing the closed-loop management of the entire equipment process and preventing risks.

“All good principles should adapt to changing times to remain relevant.” JIC Leasing has been actively cultivating the energy storage market, serving small and micro enterprises, and systematically growing in the field of clean energy with the goal of assisting in China’s energy optimization, promoting green development, and focusing on “green finance” and “inclusive finance”.