Global Energy Substitution Trading Returns Once Again

The tree of the global energy structure… The narrative of new energy, which is green energy (wind, solar, storage), is increasingly gaining recognition from institutional private equity and others…

This time, the Middle East incident has a far-reaching impact… Overseas attention and support for green energy will undoubtedly increase… Making energy and electricity more diversified.
I have definitely made an early judgment on green energy—also provided corresponding reasons, logic, and a series of analyses…
Now, if you ask institutions—11 out of 10 will tell you to reduce holdings to cope with uncertainty… After all, if oil prices stay high, the global economy is prone to stagflation…
Looking at most institutional views… there is a growing consensus… which aligns with my previous prediction that the substitution of green energy is accelerating.
Moreover, our country’s new energy (wind, solar, storage) is undoubtedly the world’s No. 1…
In the past, rare earths were called our main foreign trump card, and the same applies to new energy.

【HuaAn Electric New】Energy Storage Recommender: Multiple narratives converge—focus on high/low switching and data center opportunities brought by energy storage

➡AI: Energy storage is expected to become the main power source in the next generation of data centers in the U.S., with potential for multi-scenario growth.
◆ Data center energy storage becoming the main power source, with its value being re-evaluated. Gas turbines address the energy transition for existing data centers, while energy storage defines the energy architecture for the next generation. Future green data center parks will integrate land, energy, and power supply systems, making them more suitable for wind, solar, and storage collaboration than existing facilities. Energy storage will become the primary power source. Google and OpenAI are already exploring solar and storage solutions.
◆ Google and Tesla have established grid utilization alliances, and energy storage is expected to enter a multi-scenario growth phase. Companies aim to utilize energy storage and virtual power plants to more efficiently leverage existing grid assets to handle additional loads.
◆ Energy storage is no longer just an independent device outside the park but is evolving into a backup power source, main power supply, and grid interaction role, with potential for increased storage capacity and profitability.

➡U.S.-Israel conflict: Global energy prices rise, integrated solar and storage solutions become more cost-effective
◆ The narrative shifts from the U.S.-Israel conflict → Qatar LNG production halt / Strait of Hormuz restrictions → global energy prices increase. The cost-effectiveness of new energy is highlighted, and integrated solar and storage energy supply methods are favored by many countries.
◆ Rising electricity prices, economic substitution demand, and war-driven essential electricity needs jointly boost demand for residential storage, commercial storage, and large-scale storage.

➡Computing and power synergy: First inclusion in government work report, deep integration of computing power and electricity
◆ Domestic new data centers need to achieve over 80% green electricity consumption. The inherent volatility of wind and solar energy cannot meet data center power demands, making energy storage a crucial link between data centers and new energy sources.
◆ Currently, some domestic data centers operate in grid-connected scenarios, with projects only partially connected to the public grid, most of their power supplied by new energy. This confirms that domestic computing and power synergy and next-generation data center energy storage in the U.S. are expected to become primary power sources.

➡Wind bias shift: High odds + increased win rate, focus on storage opportunities from high/low switching and data centers
◆ 2025 will see significant growth in energy storage installations, with large-scale storage accounting for 50% of the annual installations in Q4 2025, and small-scale storage in Australia benefiting from installation rushes and tax rebate periods. Overall performance is expected to grow sharply. Data center storage projects are gradually disclosed, and success rates are improving.

➡Recommendations to watch:
◆ Large-scale storage: Sungrow (global leader in large-scale storage, PE below 20x in 2026, rapid progress in North American data centers), Haibo Sichuang (ample overseas projects), Sungrow Electric (private placement, performance release in 2026, collaborations with Fluence/FlexGen in North America), Artes, Xidian New Energy.
◆ Small-scale storage: Deye, Sungrow, Airo Energy, Gudewei, Jinneng Technology, etc.
◆ Battery sector: CATL, CALB, EVE Energy (battery segment is a major global storage bottleneck, benefiting from rising global energy prices).

➡【U.S. Power Shortage Deep Report】/High-frequency data on energy storage/Europe, U.S., Middle East markets
Still aligned with previous views.
Green energy—wind, solar, storage inverters—are replacing traditional energy sources like coal and chemical industries… Some niche chemical segments face mismatches and shortages… Green hydrogen, green ammonia, green methanol, etc…
If you can’t keep up, focus on energy storage inverters!