According to data from the National Energy Administration, China’s cumulative installed capacity of operational new energy storage projects reached 73.76 GW/168 GWh by the end of 2024, marking a 20-fold increase compared to the end of the 13th Five-Year Plan period12. When including pumped hydro storage, the total energy storage capacity reached 140 GW, reshaping the energy map at a 40% compound annual growth rate34.
Previously regarded as a “minor player” in power systems, energy storage has now become a central pillar in the green energy transition, operating at the gigawatt-hour scale for the first time4. The technological landscape has diversified beyond lithium-ion batteries to include compressed air storage, flow batteries, solid/semi-solid-state batteries, and sodium-ion storage systems4. Notably, electrochemical storage capacity surged from less than 4 GWh in 2021 to over 100 GWh in 2024, a growth rate described as “unprecedented in any sector”5.
This transformation stems from policy empowerment and technological breakthroughs. Since 2017, over 2,200 specialized policies have been issued to support energy storage, with nearly 500 new policies added in 2024 alone, establishing a comprehensive framework covering R&D, market mechanisms, and safety standards4. The completion of a unified national electricity market system in 2024 further enabled energy storage to participate independently in power markets, with capacity pricing for grid-side storage formalized in policies34.
Economic viability has significantly improved. In Guangdong and Shandong, energy storage projects achieved 12% internal rates of return through peak-valley arbitrage, capacity leasing, and ancillary services6. Jiangsu’s “shared storage” model aggregated distributed resources for demand response, boosting annual revenue by 3 million yuan per project6. These advancements propelled electrochemical storage additions to over 100 GWh in 2024, a 25-fold increase from 20215.
Capital markets also reflected optimism, with 107 financing deals totaling 17.6 billion yuan in 2024, including investments in system integration, lithium batteries, and emerging technologies like sodium-ion and solid-state batteries4.
Technological innovations laid the groundwork for expansion. For example, a 300 MW advanced compressed air storage system developed by the Chinese Academy of Sciences achieved 72% conversion efficiency, while CATL’s third-generation sodium-ion battery reached 165 Wh/kg with 200% improved low-temperature performance4.
The Action Plan for High-Quality Development of the New Energy Storage Manufacturing Industry, jointly issued by eight departments, aims to accelerate diversified technology development and integrate storage into multi-scenario applications, including virtual power plants and vehicle-grid interactions4. Experts emphasize that storage will play a strategic role in enhancing grid flexibility, stability, and participation in electricity spot markets and carbon trading4.
