On August 12, Baota Industrial issued an announcement stating that its controlling subsidiary will invest RMB 1.011 billion to construct three large-scale energy storage projects, with a total capacity of 640 MW/1,280 MWh. The average investment payback period is estimated at approximately 17.96 years.
Yingshuiqiao Energy Storage Project
Subsidiary Ningguoyun Zhongwei New Energy Co., Ltd. (“Zhongwei New Energy”) plans to invest in the Yingshuiqiao 80 MW/160 MWh energy storage power station, with a total dynamic investment of approximately RMB 145.23 million. The facility will house eight 5 MW/5 MWh units and eight 5 MW/15 MWh units, each comprising battery containers and power conversion systems (PCS). Construction is scheduled to take around six months and will be located in Yingshuiqiao Town, Shapotou District, Zhongwei City, Ningxia, within the Yingshuiqiao wind-solar hybrid site.
According to the feasibility study, the project has a post-tax project IRR of 2.54% and an equity IRR of 2.52%. The investment payback period is 18.66 years, with a total investment return of 2.02% and an equity net profit margin of 3.68%.
Majia Tan Energy Storage Project
Subsidiary Ningguoyun New Energy (Lingwu) Co., Ltd. (“Lingwu New Energy”) plans to invest in the Majia Tan 240 MW/480 MWh energy storage power station, with a total dynamic investment of approximately RMB 372.98 million. The project will consist of 48 units rated at 5 MW/10 MWh, each with battery containers and PCS. Construction will take about six months, located in Majia Tan Town, Lingwu City, Yinchuan, Ningxia, within the Lingwu Majia Tan 1 GW PV zone.
The project’s post-tax IRR is 3.36%, equity IRR is 5.00%, payback period is 17.64 years, total investment return is 2.64%, and equity net profit margin is 6.04%.
Gaoshawo Energy Storage Project
Subsidiary Ningguoyun New Energy (Yanchi) Co., Ltd. (“Yanchi New Energy”) plans to build the Gaoshawo 320 MW/640 MWh energy storage power station, with a total dynamic investment of approximately RMB 492.33 million. The facility will include 64 units rated at 5 MW/10 MWh, each equipped with battery containers and PCS. Construction will last around six months and will be located in Gaoshawo Town, Yanchi County, Wuzhong City, Ningxia, within the Gaoshawo 920 MW PV zone.
The project’s post-tax IRR is 3.41%, equity IRR is 5.16%, payback period is 17.59 years, total investment return is 2.68%, and equity net profit margin is 6.18%.
Corporate Background
Baota Industrial’s core business includes the production and sales of bearings and marine electrical equipment. On July 25, 2024, the company announced plans to acquire 100% equity of Ningxia Electric Power Investment New Energy Group via an asset swap. The assets to be acquired were valued at RMB 1.071 billion, while the assets to be disposed of were valued at RMB 547 million, with the RMB 524 million difference to be funded through a capital raise.
Electric Power Investment New Energy focuses on the investment, development, and operation of PV, wind, and energy storage power station projects. It currently holds 780 MW of PV and wind projects, about 200 MW/400 MWh of energy storage projects, and has secured approvals for an additional 1.1 GW of new energy capacity.
Source：https://mp.weixin.qq.com/s/UOcTzSQME_TCyDKhUTCQhA