Long-term energy storage: A New Era for New Energy
As of March 20, 2025, the energy storage industry is increasingly becoming a significant player in the new energy sector. A recent report stated that in the context of policy and market strength, energy storage is likely to transition into a new phase. Currently, it is generally recognized that when the share of renewable energy generation in a country’s energy portfolio exceeds 20%, the need for energy storage becomes critical. Energy storage systems must achieve a capacity utilization rate of 50-80% to meet demand efficiently, and the duration of energy storage must reach at least 10 hours.
According to national energy statistics, by 2024, the total renewable energy generation capacity is projected to reach 3.46 million kilowatt-hours, with an estimated share of about 35% from wind and solar power combined, reaching approximately 1.83 million kilowatt-hours.
China’s renewable energy generation capacity has already exceeded 20%, but by 2024, the average energy storage duration is expected to stabilize at 2.3 hours, with projects lasting 4 hours and longer at 15.4%. Projects with a duration of 2 to 4 hours are expected to reach a peak utilization of 71.2%.
According to the latest data, the current energy storage technology, especially for long-duration storage, still has limitations, severely affecting the development of new energy enterprises. Notably, the average energy storage duration in China is 2.2 hours, while short-duration storage solutions are inadequate for stabilizing the electric grid and meeting fluctuating power demand.
In response, various policies have been introduced to promote long-duration energy storage and the advancement of new energy technologies. For instance, in August 2021, the National Energy Administration and the Energy Bureau released a guideline to enhance the renewable energy generation portfolio, requiring a greater share of long-duration storage. By December 2023, the National Development and Reform Commission is set to release the “Guideline for Industrial Structure Adjustment (2024 Edition),” which will address the need for the development of long-duration energy storage technologies.
By March 2024, the first report on new renewable energy projects will be presented. On February 27, the National Energy Administration released the “2025 Energy Industry Work Guidelines,” emphasizing the construction of a new renewable energy system that ensures stability and security while promoting green energy transition strategies.
According to the report, the development of long-duration energy storage technologies, specifically for large-scale applications, must meet several criteria: security, efficiency, and scalability. These foundational elements are essential for the successful implementation of energy storage systems.
Looking forward, the renewable energy storage sector is projected to increase significantly, with estimates suggesting that by 2030, China’s electricity consumption will surpass 10 billion kilowatt-hours, and by 2030, it is expected to exceed 12 billion kilowatt-hours.
In the context of new energy storage technologies, we estimate that energy storage systems may need a capacity of 200GW-300GW. Based on various analyses, it is predicted that by 2025, the share of long-duration energy storage in the market could increase to 21% to 50%, with projects ranging from 100GW in scale.
Furthermore, the latest estimates from the Global Energy Storage Initiative indicate that by 2024, the long-duration energy storage capacity in China will reach 1.81GWh. This includes significant contributions from pumped hydro storage, which will account for over 80% of the total capacity.
As we continue to develop these technologies, it is essential to address current challenges and ensure that long-duration energy storage meets the necessary performance and efficiency requirements. Overall, the future of energy storage in China looks promising, with ongoing advancements and strategic initiatives aimed at enhancing the industry.
