China has achieved a remarkable milestone in the field of energy storage, with its overall capacity in the “new type” energy storage sector tripling to over 35 gigawatts (GW) by the end of March this year. This represents a significant 12 per cent growth from the end of 2023 and an astonishing 210 per cent growth from a year earlier, according to China’s National Energy Administration (NEA).
One of the key drivers of this growth is the large-scale energy storage projects, which contribute to over half of the country’s storage capacity in the sector. These projects, with a capacity of more than 0.1GW, are crucial for ensuring a consistent supply of power, especially when generation from intermittent sources like wind and solar fluctuates. Notably, northwestern China, rich in wind and solar energy, accounts for nearly 30 per cent of China’s in-operation energy storage capacity, as reported by the NEA.
This surge in energy storage projects comes as China’s installed capacity of renewable energy exceeded 1,450GW by the end of last year, which makes up more than half of the country’s total installed power generation capacity. The nation has set an ambitious goal of having 80 per cent of its total energy mix come from non-fossil-fuel sources by 2060, highlighting the significance of renewable energy technologies in China’s energy landscape.
The term “new type” energy storage encompasses a range of technologies including lithium-ion batteries, electrochemical, compressed air, flywheel, and thermal energy storage, specifically excluding pumped hydro storage. The NEA revealed that lithium-ion batteries dominate the operational energy storage capacity in China, accounting for a striking 97 per cent, while other emerging technologies make up the rest.
China’s commitment to further developing the new-type energy storage sector is evident in the action plan released by the National Development and Reform Commission, outlining a five-year roadmap until 2025, with the goal of achieving large-scale commercialisation within this timeframe.
Several provinces and cities in China have also introduced local plans for energy storage, in alignment with the national agenda. State-owned enterprises and industry leaders have shown great interest in this burgeoning sector, with China Southern Power Grid launching the country’s first large-scale energy station based on sodium-ion batteries in the Guangxi autonomous region, showcasing the potential of new technologies as a viable alternative to the prevalent lithium batteries.
Furthermore, Tesla’s battery supplier, CATL, has made significant strides in China’s energy storage sector, launching what it claims to be the world’s first mass-producible energy storage system that offers zero capacity loss for five years. With these key players investing heavily in energy storage technology, the sector is poised for exponential growth in the coming years.
Looking ahead, BloombergNEF projects that the global energy storage sector is expected to reach a total capacity of 137GW by 2030, with China emerging as the largest regional market, accounting for over a third of the global capacity. This underscores China’s pivotal role in driving the future of renewable power storage technology, as the nation continues to make impressive strides towards a sustainable and greener energy landscape.