China's new energy storage industry has entered a stage of scaled development.

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　　In recent years, China’s new energy storage technologies have been developing rapidly, playing an increasingly prominent role in the new power system. This has strongly promoted the development and consumption of new energy sources and enhanced the safety and stability of the power system’s operation.

　　Recently, the National Energy Administration released the "China New Energy Storage Development Report (2025)," which pointed out that since the start of the 14th Five-Year Plan, China has preliminarily established the “four pillars and eight supporting components” of its new energy storage development policies, and new energy storage has been steadily advancing. As of the end of 2024, China had put into operation 73.76 million kilowatts/168 million kilowatt-hours of new energy storage capacity, accounting for over 40% of the world’s total installed capacity. The technological routes for new energy storage are flourishing, covering all major technology routes currently in global engineering applications; the level of dispatch and operational management has been steadily improving, providing strong support for the construction of a new power system.

　　International Development Trends in New Energy Storage

　　In 2015, at the 21st United Nations Climate Change Conference, nearly 200 parties jointly signed the Paris Agreement, setting a global goal of achieving net-zero greenhouse gas emissions. Since the signing of the climate change agreement, the global energy transition has entered a fast track, with the scale of renewable energy rapidly expanding. As a result, the “dual-high” challenge—characterized by high penetration of renewable energy and extensive use of power electronic devices—has become increasingly prominent. Under these circumstances, new energy storage technologies have emerged as critical equipment for ensuring the safe and stable operation of power systems and for promoting the global energy transition. Countries around the world are actively introducing policies and measures to accelerate the development of new energy storage, including technological R&D incentives, innovations in market regulations, and pilot project deployments.

　　Globally, strategic investments in new energy storage technologies are on the rise. In 2024, factors such as the global energy transition and tight regional energy supply-demand dynamics have driven rapid growth in demand for new energy storage. Countries and regions including the United States, the European Union, and the United Kingdom continue to step up their support for the development of the new energy storage technology industry, introducing a series of investment, subsidy, and tax incentive policies. They are actively deploying efforts to tackle key technological challenges in new energy storage and building independent, self-reliant new energy storage industrial chains.

　　The global market for new energy storage technologies is experiencing rapid growth. In 2024, driven by both supportive policies and strong market demand, the installed capacity of new energy storage systems worldwide surged rapidly. As of the end of 2024, the cumulative installed capacity of commissioned new energy storage projects globally reached approximately 180 million kilowatts, an increase of about 98% compared to the end of 2023, with newly added capacity totaling roughly 90 million kilowatts. Among these, the United States added about 11 million kilowatts of new capacity, the United Kingdom added about 600,000 kilowatts, and Australia added about 900,000 kilowatts. In 2024, global shipments of energy storage batteries reached 370 million kilowatt-hours, representing an increase of roughly 65% over the previous year. Global shipments of energy storage systems totaled 240 million kilowatt-hours, up more than 60% from the previous year.

　　New energy storage technologies continue to expand their applications. In 2024, countries around the world are steadily pursuing innovative explorations in new energy storage technologies. In the field of electrochemical energy storage, Australia is promoting the application of silicon-based anode materials for next-generation lithium-ion batteries; the United States and Japan are deploying research on metal-air battery technologies—specifically iron-air and zinc-air batteries—and are advancing technology demonstrations. In the area of long-duration energy storage, countries including the United States, Germany, and Japan are pushing ahead with research on adiabatic compressed air energy storage technology. The United Kingdom has also built a pilot-scale liquid-air energy storage facility with a capacity of 350 kilowatts/2,500 kilowatt-hours. In the field of energy storage regulation, research institutions in the United States and the European Union are making technological arrangements for optimizing the operation and centralized control of new energy storage systems. Meanwhile, countries such as the United Kingdom and Germany are exploring intelligent scheduling technologies for new energy storage, thereby driving the substitution of new energy storage for grid investments.

　　Several major new energy storage projects have been launched. In 2024, countries have actively promoted the implementation of new energy storage projects across various application scenarios, with numerous large-scale new energy storage power stations now in operation. In California, USA, a lithium-ion battery energy storage project with a single-station capacity of 3.287 million kilowatt-hours has been put into operation; in Maine, a 85,000-kilowatt/8.5 million kilowatt-hour iron-air battery energy storage system is under construction. In Scotland, UK, a 300,000-kilowatt/600,000-kilowatt-hour grid-forming energy storage project is being developed to enhance Scotland's power supply reliability. Belgium has also initiated a 700,000-kilowatt/2.8 million kilowatt-hour lithium-ion battery energy storage project—the largest single-station facility of its kind in Europe. In the Middle East and Africa, Saudi Arabia’s Red Sea New City independent microgrid project has been commissioned, equipped with a 1.3 million kilowatt-hour intelligent string-type grid-forming energy storage system; South Africa’s largest photovoltaic energy storage power plant has also begun operations, featuring a lithium-ion battery energy storage capacity of 220,000 kilowatts/1.14 million kilowatt-hours.

　　The Development Status of New Energy Storage in China

　　Under the guidance of the new energy security strategy of “Four Revolutions and One Cooperation” and the “Dual Carbon” goals, China is accelerating the planning and construction of a new energy system and promoting the development of a new power system. New energy sources continue to grow rapidly, placing ever-higher demands on the flexibility and regulation capabilities of the power system. As a key technology supporting the construction of the new power system, advanced energy storage serves as an important pillar for facilitating the large-scale development and consumption of new energy sources, ensures the safe and stable operation of the power system, and provides a crucial means for promoting low-carbon energy use across various industries. Since the start of the 14th Five-Year Plan, China’s supportive policies for advanced energy storage have become increasingly comprehensive, technological innovation and industrial development have continuously achieved breakthroughs, and installed capacity has grown rapidly. As a result, the advanced energy storage industry is gradually transitioning from its early commercialization phase into a stage of scaled development.

　　First, the policy framework for new energy storage is continuously being refined and improved.

　　At the national level, top-level design has been further clarified. Since the 14th Five-Year Plan, the policy framework for new energy storage has continued to improve. Documents such as the "Guiding Opinions on Accelerating the Development of New Energy Storage" and the "Implementation Plan for the Development of New Energy Storage during the 14th Five-Year Plan" have been issued one after another, providing overall arrangements for the scaled, industrialized, and market-oriented development of new energy storage and outlining key tasks to promote high-quality development of new energy storage. The "Provisional Management Standards for New Energy Storage Projects" have been formulated, specifying detailed requirements for managing various stages of new energy storage projects, including planning and layout, filing and construction, grid connection and dispatch, as well as monitoring and supervision.

　　In 2024, “developing new types of energy storage” was included in the Government Work Report for the first time. The Energy Law of the People’s Republic of China was promulgated, explicitly stating that “we should promote the high-quality development of new energy storage and leverage the regulatory role of various types of storage in the power system,” thereby clearly defining the functional positioning of new energy storage at the legal level.

　　The provincial-level support policy system continues to be refined and improved. Since the start of the 14th Five-Year Plan, various provinces, autonomous regions, and municipalities have, based on local conditions, issued guiding opinions, development plans, and implementation schemes to promote the development of new energy storage. These documents outline approaches and goals for the development of new energy storage and provide support from technical, industrial, and market-mechanism perspectives.

　　In 2024, various regions have actively explored innovative market models and cost-allocation mechanisms through methods such as capacity leasing, electricity spot markets, ancillary services, and capacity compensation, thereby promoting the sustainable development of new energy storage. Several provinces have already set clear guiding prices for capacity leasing. The electricity spot markets in Shanxi, Guangdong, Shandong, Gansu, and Western Mongolia, as well as the inter-provincial spot market operated by State Grid, have officially entered into operation. Additionally, seven electricity spot markets—including those in Hubei, Zhejiang, Fujian, Shaanxi, Anhui, Liaoning, and Southern Hebei—have conducted continuous trial settlements. The Southern Regional Electricity Market, as the nation’s first regional electricity market, has completed a full-month trial settlement. Thirteen provinces have launched trial operations of electricity spot markets at varying degrees, encouraging independent energy storage providers to participate in these markets either by "reporting volume without quoting prices" or by "reporting both volume and price." Such flexible and accurate market price signals are guiding new energy storage systems to actively engage in system regulation. Nearly 20 provincial-level regions have clarified the entry conditions, trading models, and pricing mechanisms for new energy storage participation in ancillary service markets. Provinces including Guizhou, Shanxi, and Yunnan have specified rules for new energy storage participation in auxiliary services such as reserve power, ramp-up capability, and black-start capabilities. Meanwhile, provinces including Shandong, Inner Mongolia, Xinjiang, and Hebei have been actively exploring capacity compensation mechanisms, clearly defining compensation periods and the entities responsible for cost-sharing.

　　Second, the installed capacity of new energy storage is rapidly increasing.

　　The installed capacity of new energy storage has doubled year after year. As of the end of 2024, the cumulative installed capacity of newly commissioned new energy storage projects nationwide reached 73.76 million kilowatts/168 million kilowatt-hours—about 20 times the level at the end of the 13th Five-Year Plan period—and increased by more than 130% compared to the end of 2023. In 2024 alone, the newly added installed capacity of new energy storage totaled 42.37 million kilowatts/101 million kilowatt-hours. The average duration of energy storage nationwide is 2.3 hours, an increase of approximately 0.2 hours from the end of 2023, and the duration of energy storage has been on the rise since the start of the 14th Five-Year Plan period.

　　The development of new energy storage in key regions is accelerating. As of the end of 2024, the top five provinces and regions in terms of installed capacity of new energy storage are Inner Mongolia with 10.23 million kilowatts, Xinjiang with 8.57 million kilowatts, Shandong with 7.17 million kilowatts, Jiangsu with 5.62 million kilowatts, and Ningxia with 4.43 million kilowatts. Nationwide, a total of 17 provinces, regions, municipalities, and the Xinjiang Production and Construction Corps have new energy storage installations exceeding one million kilowatts.

　　The scale and duration of individual energy storage stations are on the rise. As of the end of 2024, among nationwide new-type energy storage projects, those with a single-station capacity of 100,000 kilowatts or more and a storage duration of 2 hours or longer account for a relatively high proportion. The total installed capacity of projects with a single-station capacity of 100,000 kilowatts or more amounts to 45.96 million kilowatts, accounting for approximately 62%; the total installed capacity of projects with a single-station storage duration of 2 hours or longer reaches 63.86 million kilowatts, accounting for about 86%. Judging from the current status of projects under construction, large-scale and medium-to-long-duration new-type energy storage projects are showing an upward trend.

　　Third, the effectiveness of new energy storage applications is gradually becoming apparent.

　　New energy storage applications are focused on key scenarios. In 2024, the primary application scenarios for China's new energy storage projects include standalone energy storage, shared energy storage, and energy storage integrated with new energy sources, collectively accounting for nearly 90% of the total installed capacity. Among these, standalone and shared energy storage have installed capacities of 34.12 million kilowatts and 74.32 million kilowatt-hours, respectively, representing approximately 46% of the total installed capacity; while energy storage integrated with new energy sources has an installed capacity of 30.97 million kilowatts and 73.79 million kilowatt-hours, accounting for roughly 42% of the total installed capacity.

　　The multiple values of new energy storage are gradually being realized. In 2024, the utilization of new energy storage significantly increased compared to 2023, with an average annual equivalent utilization duration of 911 hours—an increase of approximately 300 hours over 2023. The average annual equivalent charge-discharge cycles reached 221, up by about 59 cycles from 2023. Provinces, autonomous regions, and municipalities such as Zhejiang, Jiangsu, Chongqing, Xinjiang, Guangdong, Tibet, Hubei, and Ningxia recorded average annual equivalent utilization durations exceeding 1,000 hours.

　　Fourth, practical steps have been firmly taken in technological innovation.

　　Multiple technological approaches are accelerating their implementation and deployment. As of the end of 2024, among various new energy storage technologies, lithium-ion battery storage remains dominant, accounting for approximately 96.4% of the installed capacity already in operation. Compressed air energy storage and flow battery energy storage represent the primary alternative technologies to lithium-ion battery storage, each accounting for 1%. Several 300,000-kilowatt-class compressed air energy storage projects, 100,000-kilowatt-class flow battery energy storage projects, and single-megawatt-class flywheel energy storage projects have been put into operation. A number of grid-forming energy storage projects have also been successfully implemented. Innovative technologies such as gravitational energy storage, liquid air energy storage, and compressed carbon dioxide energy storage are rapidly gaining traction, and overall, new energy storage technologies are showing a trend toward diversified development.

　　New progress has been made in various energy storage technology innovations. The technological level of lithium-ion battery energy storage continues to improve, with rapid iterative advancements focused on objectives such as large-capacity cells, large-scale integration, wide-temperature-range operation, and long service life. Several new types of energy storage technologies are transitioning toward commercial applications: In compressed-air energy storage, China has achieved breakthroughs in key equipment for 300,000-kilowatt-class compressed-air energy storage systems; in all-vanadium redox flow battery energy storage, a 70-kilowatt high-power-density single-cell stack has been successfully developed, nearly doubling the volumetric power density of individual stacks, and highly efficient non-fluorinated ion-exchange membranes have entered continuous pilot-scale production; in flywheel energy storage, multiple combined-frequency-regulation power stations integrating thermal power plants with flywheel energy storage, as well as standalone flywheel energy storage stations, have been connected to the grid and are now in operation; additionally, a single-unit 4,000-kilowatt/1,000-kilowatt-hour magnetic levitation flywheel energy storage project has completed grid connection and commissioning.

　　A batch of new energy storage technologies is accelerating demonstration applications. In the field of sodium-ion battery energy storage, cell capacities have reached 200 amp-hours, with a cycle life exceeding 5,000 cycles and stable operation at temperatures as low as minus 40 degrees Celsius; some products have already entered mass production and are being applied commercially. In the area of flow battery energy storage, iron-chromium flow batteries have now produced 500-kilowatt stack modules, with individual stacks capable of enduring up to 20,000 charge-discharge cycles; significant progress has also been made in the development of high-performance electrolyte materials for aqueous organic flow batteries. Regarding compressed carbon dioxide energy storage, the design of an integrated subcritical compressed carbon dioxide energy storage system featuring gas-liquid phase transition has been completed, along with the development of a complete set of equipment. Key core technologies and manufacturing processes—including compressors, expanders, heat exchangers, and flexible gas bags—have been mastered. In liquid air energy storage, critical equipment manufacturing technologies have been established for large-scale compressors, expanders, cryogenic tanks, cryogenic pumps, and solid-phase cold storage devices. As for gravity-based energy storage, independent R&D has been achieved for key equipment such as integrated power-generation/propulsion units, heavy-object transportation systems, and loading/unloading systems.

　　A number of disruptive, cutting-edge new energy storage technologies—such as solid-state batteries, thermal pump-based energy storage, and hydrogen-based energy storage—are accelerating their development to meet the future power system’s demand for multi-timescale, high-safety-performance storage.

　　Pilot applications are accelerating the commercialization of new technologies. Pilot projects are facilitating the implementation of innovative energy-storage technologies. In January 2024, the National Energy Administration announced 56 pilot projects for new energy storage systems, which have demonstrated effectiveness in various scenarios—including large-scale new-energy bases and supporting power supply security—and have generated positive demonstration and driving effects. Several of these pilot projects represent the first-ever engineering applications in China, significantly boosting breakthroughs in key technologies and equipment for new energy storage and promoting coordinated development across the upstream and downstream sectors of industries such as compressed-air energy storage and flow-battery energy storage. In November 2024, the National Energy Administration released the fourth batch of lists of first-of-its-kind (set) major technical equipment in the energy sector, highlighting the advanced technological level of equipment in the field of new energy storage.

　　Innovative breakthroughs in various technological approaches have received national support. In 2024, the National Energy Administration released the 2024 Project Application Guidelines for the Key Special Project “Energy Storage and Smart Grid Technologies” under the National Key R&D Program. The guidelines provide support for seven key technological areas, including medium- and long-term energy storage technologies, short-term high-frequency energy storage technologies, and ultra-long-term energy storage technologies, thereby charting a clear path for innovative breakthroughs in diverse technological approaches for next-generation energy storage.

　　Fifth, the scale of the new energy storage industry continues to grow.

　　In 2024, the lithium-ion battery energy storage industry is experiencing rapid growth. Meanwhile, the development potential of industries such as compressed air energy storage and all-vanadium redox flow battery energy storage continues to be unleashed.

　　The production of new energy storage devices continues to show a growth trend. In 2024, the nation's lithium-ion battery output continued to rise, reaching a total of 1.17 billion kilowatt-hours—a year-on-year increase of 24%. The industry’s total output value exceeded 1.2 trillion yuan. Among this, the output of lithium-ion batteries designed for energy storage reached 260 million kilowatt-hours, accounting for 22% of the nation's total lithium-ion battery production and marking a three-year consecutive increase.

　　The cost of new energy storage technologies has been steadily declining. In 2024, the cost of lithium-ion battery energy storage dropped significantly compared to 2023. The winning bid prices for EPC contracts for lithium-ion battery energy storage fell by approximately 25% from 2023 levels, while the winning bid prices for lithium-ion battery energy storage systems declined by about 44% compared to 2023. Lithium-ion battery cell prices have been heavily influenced by fluctuations in international lithium carbonate prices. In 2024, the price of battery-grade lithium carbonate gradually declined and stabilized, leading to an overall steady decrease in cell prices. The scale of the all-vanadium redox flow battery industry continues to expand, and both the winning bid prices for all-vanadium redox flow battery energy storage systems and the EPC winning bid prices have decreased. In 2024, the winning bid prices for all-vanadium redox flow systems at comparable scales were roughly 20% lower than those in 2023.

　　Sixth, standards and specifications for new energy storage continue to be improved and refined.

　　A new standard system for energy storage is gradually being established. In 2023, the National Standardization Administration and the National Energy Administration jointly issued the "Guidance on Building a New Energy Storage Standards System," which proposed a framework for a new energy storage standards system covering eight areas, including basic general standards, planning and design, equipment testing, and more. Under this framework, China’s level of development in building a new energy storage standards system has further improved. In 2024, the National Energy Administration issued the "Notice on Issuing the 2024 Plan for the Formulation and Revision of Industry Standards in the Energy Sector as well as the Translation Plan for Foreign-language Versions." This notice covers the formulation of four industry standards for compressed air energy storage, one industry standard for flywheel energy storage, and two industry standards for molten-salt energy storage. In 2024, a total of 26 national standards and 18 industry standards in the field of new energy storage were released.

　　Standards for various stages of engineering applications are becoming increasingly comprehensive. In 2024, more than 20 standards for electrochemical energy storage were released and implemented, covering multiple stages including planning and design, grid connection, operational control, maintenance and testing, and post-evaluation.

　　The development of standards for various technological approaches is progressing smoothly. Currently, China’s standard system for lithium-ion battery energy storage is becoming increasingly comprehensive, and technological approaches represented by compressed-air energy storage, flywheel energy storage, and flow battery energy storage are gradually emerging as key focuses in standard-setting efforts.

　　Prospects for the Development of New Energy Storage in China

　　2025 is the concluding year of the 14th Five-Year Plan, the inaugural year for laying the groundwork for the 15th Five-Year Plan, and also a pivotal year marked by continuous breakthroughs in new energy storage technology innovation, the gradual refinement of industry management systems, and sustained high-quality development.

　　The research and drafting of the "Implementation Plan for New Energy Storage during the 15th Five-Year Plan" are currently underway. The focus is on studying key issues related to the development of new energy storage during the 15th Five-Year Plan, clarifying the positioning and role of new energy storage in building a new power system, scientifically and reasonably determining the demand and spatial layout for new energy storage development during the 15th Five-Year Plan period, and coordinating the development of new energy storage with the development of various links—sources, grids, and loads—in the new power system.

　　New energy storage technologies play a variety of critical roles in new power systems, including peak-shaving and frequency regulation, ensuring reliable power supply, and providing capacity support. The corresponding value of these technologies needs to be reflected at the revenue level. As medium- and long-term markets, spot markets, ancillary service markets, and capacity compensation mechanisms are gradually refined, the various values of new energy storage can be better realized through different trading products, fully leveraging the market’s decisive role in resource allocation. It is important to study and improve pricing mechanisms for regulatory resources—including new energy storage—to guide investment in new energy storage in a rational manner. We should scientifically assess the cost-effectiveness of replacing transmission and distribution infrastructure with new energy storage facilities, and encourage the deployment of grid-replacement energy storage systems in areas where distribution network expansion is constrained or in remote regions.

　　In light of the diverse application scenarios of the new power system, we will clarify the development direction of new energy storage technologies and pool our strengths to tackle key technological challenges. We will encourage leading enterprises to collaborate with high-level science and technology innovation platforms, universities, and research institutes to conduct joint research on common technologies and develop major strategic products. Specifically, we will promote breakthroughs in technologies such as large-capacity, wide-temperature-range lithium-ion battery energy storage, high-performance, low-cost flow battery energy storage, large-scale compressed-air energy storage, grid-forming energy storage, and hybrid energy storage systems. We will fully leverage national key R&D programs and national energy R&D and innovation platforms to drive innovation in new energy storage technologies. Moreover, we will rely on pilot projects for new energy storage and the first-of-its-kind (set) major technical equipment in the energy sector to facilitate the commercialization and application of innovative new energy storage technologies.

　　Promote the full realization of the multiple roles of new energy storage. Further implement the "Notice on Promoting the Grid Connection and Dispatching Operations of New Energy Storage," standardize the management of grid connection and access for new energy storage, enhance operation and maintenance management levels, encourage upgrades and renovations aimed at improving grid-related performance, and fully tap into the regulatory capabilities of new energy storage. Conduct research to refine and improve the evaluation indicator system for the dispatching of new energy storage, timely release key industry development information, guide the industry in scientifically and rationally assessing the dispatching performance of new energy storage, further leverage new energy storage to facilitate the development and consumption of new energy sources, enhance the safety and stability of power system operations, and bolster power supply security—thereby contributing to the construction of a new energy system and a new power system.

　　Faced with an increasingly complex international competitive landscape, it is essential to consolidate China’s advantageous position in the new energy storage industry chain, strengthen coordination across the upstream and downstream segments of the chain, promote the continuous improvement of the industry chain and the development of a robust industrial ecosystem, and steadily enhance the industry’s competitiveness. We must foster deep integration among research, academia, industry, and application, accelerate technological advancements and cost reductions in new energy storage, and leverage multilateral and bilateral cooperation mechanisms to intensify exchanges and dialogue with foreign partners. We should proactively stay abreast of international policy developments and closely follow the cutting-edge trends in global new energy storage technologies and industrial growth. Furthermore, we should support Chinese new energy storage enterprises in pursuing a global expansion strategy, conduct research to strengthen alignment between domestic and international standards for new energy storage, and deepen technological and industrial cooperation with foreign partners, thereby helping Chinese companies better “go global.”

　　(Excerpted from the “China New Energy Storage Development Report (2025)”)