Guosheng Securities has released a research report highlighting the commencement of China's first commercial smart DC power supply project using SST (Solid-State Transformer) technology at a Qinhuai Data computing center, achieving a power supply efficiency of 98.5%. This marks a paradigm shift in power distribution for computing centers from traditional AC to DC systems.
In the new energy vehicle sector, preliminary production schedules for July among sampled domestic battery manufacturers indicate a month-over-month increase of 5.7%, with all segments showing an upward trend. For energy storage, domestic battery shipments in May surged by 100.2% year-over-year. The report recommends focusing on the large-scale storage sector, which shows high growth certainty both domestically and internationally. The key points from Guosheng Securities are as follows:
Wind Power & Grid: First Domestic Commercial SST Project Commences
On July 2nd, the industry's first commercial SST smart DC power supply project for a computing center officially began operations at the Qinhuai Data Yanhuai Cloud Computing Industrial Base near the capital. This signifies a fundamental breakthrough in power distribution architecture for computing centers. The project, a collaboration between Qinhuai Data, Meituan, Dongyang Sunshine Group, and Delta Electronics, pioneers a 10kV delta-connection SST mode. It eliminates multiple redundant conversion stages in traditional power supply chains, enabling a direct one-step conversion from 10kV AC grid power to 800V DC.
The project achieves a power supply efficiency of 98.5%, currently the highest in the industry. It reduces the required footprint by over 50% compared to conventional solutions, doubling space utilization. Its integrated storage and charging design allows for all-weather peak-valley arbitrage and secure backup power. The firm believes that with the accelerated development of global AI supercomputing centers, SST, as the next-generation power supply framework, stands to benefit directly. The successful implementation of Qinhuai Data's SST project is expected to drive domestic technological iteration and accelerate the maturation of the industrial chain, reinforcing a positive outlook for SST development.
Hydrogen Energy: Yunnan Releases Green Hydrogen Production Project List
On July 2nd, the Yunnan Provincial Development and Reform Commission and the Provincial Energy Bureau issued the "2026 Green Electricity-to-Hydrogen Integrated Demonstration Project List," comprising eight demonstration projects with a total planned green hydrogen production capacity of 8,032 tons per year. Among them, the Chuxiong High-tech Zone Wind-Solar Integrated Green Ammonia Synthesis Project has the largest planned capacity at approximately 4,200 tons per year.
Energy Storage: May Domestic New Installations Decline Year-over-Year Due to High Base Effect
According to CESA, China added 2.98GW/7.18GWh of new energy storage capacity in May 2026, representing a year-over-year decrease of 66.85%/68.96%, primarily attributed to a high comparative base in the same period last year. In 2025, influenced by policy document No. 136, there was a rush to install storage projects in May, leading to the early grid connection and operation of large-scale storage projects. With the conclusion of that policy window in 2026, the market has entered a phase of policy digestion and normalized development.
New Energy Vehicles: July Battery Production Schedules Show 5.7% Monthly Increase
In May, domestic sales of new energy vehicles reached 1.049 million units, up 14.8% month-over-month but down 4.1% year-over-year. Sales of new energy passenger vehicles were 947,000 units, a 15.6% monthly increase but an 8.1% annual decrease. Sales of new energy commercial vehicles were 103,000 units, rising 7.8% month-over-month and 58.4% year-over-year.
For power batteries, domestic installations in May totaled 71.9GWh, increasing 15.2% from the previous month and 25.9% from a year earlier. Ternary batteries and lithium iron phosphate batteries accounted for 18.6% and 81.2% of installations, with year-over-year growth of 27.3% and 25.4%, respectively.
For energy storage batteries, domestic shipments in May were 94.5GWh, surging 100.2% year-over-year and rising 5.1% month-over-month. According to data from Xinluo Lithium Battery, preliminary production schedules for July among sampled domestic battery enterprises indicate a 5.7% month-over-month increase. Schedules for cathode/anode/separator/electrolyte materials in July show projected monthly increases of 3.8%, 5.6%, 1.4%, and 7.3%, respectively. It is anticipated that new energy vehicle sales will recover quarter by quarter, with battery production schedules continuing their sequential upward trend.
Photovoltaics: Prices Decline Across the Industry Chain
This week, only a small number of orders were executed in the polysilicon market. The mainstream price for dense polysilicon settled between 31-33 yuan per kilogram, with mixed-grade material around 30-32 yuan/kg and granular polysilicon around 32-33 yuan/kg. Wafer prices showed no significant average change: 183N wafers were priced at 0.88 yuan per piece, 210RN at 0.98 yuan per piece, and 210N at 1.18 yuan per piece.
N-type cell prices this week declined: the average prices for 183N, 210RN, and 210N cells fell to 0.27 yuan per watt, 0.27 yuan per watt, and 0.28 yuan per watt, respectively. Their price ranges dropped to 0.265-0.275 yuan/watt, 0.265-0.275 yuan/watt, and 0.275-0.28 yuan/watt, respectively.
Overall module prices changed this week. The price for TOPCon utility-scale modules in China was lowered by 0.01 yuan to 0.71 yuan per watt. The overall average price decreased to 0.737 yuan per watt. Current actual delivery prices for TOPCon modules are in the range of 0.65-0.73 yuan/watt for utility-scale and 0.73-0.76 yuan/watt for distributed projects. For overseas TOPCon modules, the average price this week remained stable at $0.116 per watt.
Risk Factors
Potential risks include new energy installation volumes falling short of expectations, new energy power generation policies underperforming, and macroeconomic conditions being weaker than anticipated.
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