China Recycling Energy Corp., a waste-to-energy solution provider in China, recently entered into a Letter of Intention with a shareholder of Xi'an Xinhuan Energy Co., Ltd., to acquire 20 percent ownership of Xinhuan by issuing new shares of CREG. The company and Xinhuan will make joint efforts to develop the energy storage business in China.
The Chinese government is promoting the large-scale development of the energy storage industry. It is seen as the "first aid" to the grid at the critical moment to provide backup power supply and reduce the risk of power outage. It is also viewed as an "energy sponge" to store power during electricity peak-off hours and release during peak hours to fill the gap. Lastly, it is the 'flexible energy resource' of the power system to guarantee the stable operation of the power grid and provide a new green means to alleviate the problems between power supply and demand.
Xinhuan provides the standard module energy storage system of MW-level "reserving - storing - supplying". The system includes power station management system (BMS), energy management system (EMS), GW core PACK integration system, intelligent "cloud" operation management system and other core energy storage technologies. The standardized energy storage system module designed by Xinhuan can respond to user demand easily and quickly. It can also be assembled into energy supply systems of various power and capacity according to the different requirements to meet various market demands and applicable to various application fields. The system module can be used independently or combined into larger energy storage systems. The energy storage module adopts the international standard container, which is convenient for transportation, site installation and quick use.
Guohua Ku, Chairman of the Board of Directors of China Recycling Energy commented, "We are excited about the opportunity to acquire ownership of Xinhuan, which is an important step for our energy storage business. With the driving force of market demand and policy support in China, the energy storage industry will have a large probability of explosive growth and provide exciting development of this business.”