BYD Co., the Chinese carmaker partially owned by Warren Buffett’s Berkshire Hathaway Inc., said it expects to double deliveries of energy-storage products this year amid rising global demand.
BYD delivered energy-storage units last year with a capacity to store 57 megawatt hours -- enough to power industrial parks -- according to an e-mailed statement. Besides domestic sales, BYD exports storage units to markets including the U.S., Germany, Japan and Australia, the company said.
Ranging in size from residential units to stations for industrial use, companies like BYD are developing storage products to solve a key problem with electricity distribution: meeting demand that fluctuates throughout the day with a relatively fixed supply. These devices also help ensure a continuous supply from renewable energy sources such as solar and wind, whose output can’t be controlled.
“Like other companies doing business in the sector, BYD is still in an early exploratory stage and still has a long way to go,” said Harry Chen, an analyst at Guotai Junan Securities Co. in Shenzhen, China. “It’s unclear how this business will contribute to BYD’s overall profitability.”
BYD fell as much as 2.7 percent before trading 2.1 percent lower at 60.05 yuan as of 10:58 a.m. in Shenzhen. The benchmark Shanghai Composite Index gained 1.4 percent.
Tesla Motor Inc.’s shares rose after Chief Executive Officer Elon Musk’s Twitter posting led to speculation that the company will unveil stationary storage batteries for residential customers on April 30. SolarCity Corp., where Musk is chairman, has installed Tesla batteries at 13 Wal-Mart Stores Inc. outlets in California.
BYD completed a ferrous-battery energy storage station in Shenzhen last year, with enough capacity to allow an industrial park to manage and adjust its power needs.
— With assistance by Tian Ying