North America's Power Shortage Remains Entrenched, Energy Storage Concepts Continue to Surge; Deye Share Hits New Historical High

(Source: Caixin)

Dongwu Securities expects global energy storage installations to grow by over 60% by 2026, with a compound growth rate of 30-50% from 2027 to 2029.

On March 20, energy storage concepts continued to strengthen during trading, led by inverter-related stocks. Chuanghang New Energy (301658.SZ) and Deyei Co., Ltd. (605117.SH) hit the daily limit, reaching new historical highs. Previously, Shangneng Electric (300827.SZ) and Chint Power (002150.SZ) also hit the limit. Several stocks, including Airo Energy (688717.SH), Huabao New Energy (301327.SZ), Jinneng Technology (300763.SZ), Yunneng Technology (688348.SH), and Pntech (688063.SH), rose over 10%.

It is reported that the U.S. peak power load forecast for 2030 has been significantly revised upward by 166GW to nearly 1000GW, with data centers contributing 54%. This has led to long-term increases in regional electricity prices, continued new highs in capacity prices, and shortages of backup capacity in regional grids. The large-scale construction of AIDC reflects the ongoing intensification of supply and demand conflicts in U.S. electricity, with the gradual retirement of thermal power and other sources exacerbating power shortages. The U.S. faces persistent electricity shortages, and tight supply and demand are expected to become the norm.

CITIC Construction Investment Securities believes that currently, North American power systems face issues such as long grid connection cycles, aging and retiring power sources and grid equipment, and insufficient backup capacity. The explosive demand for AIDC will lead to North American power shortages of 39.9GW, 51.8GW, and 67.8GW in 2026-2028. Gas turbines, energy storage, and grid equipment are expected to become core beneficiaries. Currently, the market only recognizes the prosperity of gas turbines; in the next six months to a year, investments in grid and energy storage are expected to increase steadily. North America’s profit scale far exceeds that of other regions globally, making the related industry chain highly attractive.

Dongwu Securities forecasts that global energy storage installations will grow by over 60% in 2026, with a compound growth rate of 30-50% from 2027 to 2029. The reason behind the explosive growth in energy storage capacity, according to Huaxi Securities, is that on one hand, countries are continuously strengthening energy transition policies, accelerating new energy storage construction; on the other hand, the significant increase in grid peak regulation and frequency regulation demands is rapidly expanding energy storage installations.

Looking ahead at the future supply and demand relationship in the energy storage industry, Guotai Haitong Securities believes that the demand for energy storage in 2026 is highly promising, and supply shortages are expected.