Full Cooperation Between China and Germany in Energy Storage! The 2025 CIES Energy Storage Conference and Exhibition Held in Hangzhou
On March 23, 2025, the 15th Energy Storage Conference and Exhibition (referred to as “CIES2025”), hosted by the China Chemical and Physical Power Industry Association and supported by over 500 organizations, took place at the Hangzhou International Expo Center.
The CIES Conference, themed “Green, Intelligent, Integrated, and Innovative,” engaged in extensive discussions on the opportunities and challenges faced by the energy storage industry, sharing insights on sustainable development policy mechanisms, capital markets, international markets, cost reduction, intelligent system integration technology, supply chain systems, business models, technical standards, demonstration project applications, new products, and solutions for large-scale engineering applications.
More than 1,651 supply chain enterprises from various sectors, including industry authorities, domestic and foreign institutions in China, research institutions, power grid companies, generating enterprises, system integrators, and financial institutions, participated in this year’s CIES Energy Storage Conference. A total of 61,290 online guests registered, with approximately 90,000 viewers participating in the live broadcast on the Energy Storage Network video channel. Over 300 companies showcased energy storage products, covering the entire industry chain of new energy storage, including system integration, lithium-ion batteries, sodium-ion batteries, flow batteries, solid-state batteries, PCS, BMS, containers, fire protection, testing and certification, flywheel storage, molten salt thermal storage, compressed air storage, grid interaction, virtual power plants, and source-network-load-storage systems.
The organizers invited two academicians from the Chinese Academy of Sciences, top industry think tank experts, and representatives from leading enterprises to deliver keynote speeches at the opening ceremony.
Wang Zesheng, Secretary-General of the China Chemical and Physical Power Industry Association, emphasized in his address that the development of China’s new energy storage industry is always in sync with national strategies, receiving significant attention from the Central Government. The goal of “developing new energy storage” has been included in government work reports. The recently enacted Energy Law of the People’s Republic of China stipulates the need to promote high-quality development of new energy storage and leverage various storage types in power system adjustments. The Ministry of Industry and Information Technology and seven other ministries jointly released the Action Plan for High-Quality Development of New Energy Storage Manufacturing, highlighting the goals of high-end, intelligent, and green development.
The National Energy Administration is scientifically coordinating the development of new energy storage, which has become a significant manifestation of cultivating new productive forces in the energy sector. A series of policies have not only strengthened confidence in the development of the new energy storage industry but also provided robust momentum for advancing the industry’s growth towards higher, more stable, and greener standards.
According to incomplete statistics from the Energy Storage Application Branch of the China Chemical and Physical Power Industry Association, in 2024, China’s new energy storage installations are expected to reach 42.46 GW/109.58 GWh, accounting for over 60% of global new installations, with a year-on-year increase of 99.17% (power growth) and 129.56% (capacity growth). By the end of 2024, total installed capacity in China is projected to reach 74.66 GW/176.45 GWh, representing a year-on-year increase of 131.86% (power growth) and 163.8% (capacity growth), surpassing pumped storage for the first time.
The top ten provinces each have installed capacities exceeding 3 GW. Inner Mongolia is the first and only province to exceed 10 GW, leading the country in power scale. Xinjiang ranks first in capacity, with both Xinjiang and Inner Mongolia having installed capacities exceeding 20 GWh. Wang Zesheng noted that Guangxi, Qinghai, Shanxi, Anhui, Hubei, Henan, and Guizhou have cumulative installed capacities above 2 GW. Jiangsu ranks second nationally in new power capacity and third in capacity, with new installations on both the grid and user sides leading the nation. The top ten provinces have all surpassed 1.5 GW/3 GWh in new installations, with the top four provinces together accounting for more than half of the national total, while the top ten collectively account for over 80%.
By 2024, East China, North China, and Northwest regions will each witness new installations exceeding 10 GW, with East China leading at over 13 GW. The Northwest region will see the largest capacity increase, exceeding 36 GWh, while East and North China will also exceed 27 GWh. The Northwest and North China regions primarily focus on source-grid-side projects, while East China leads in both grid-side and user-side new installations.
Wang Zesheng pointed out that lithium iron phosphate battery storage projects will see new installations of 39.38 GW/96.14 GWh, accounting for 92.64% of the total power, remaining the mainstream technology. Flow battery projects have entered the GWh level, with five compressed air energy storage projects newly installed, including two 300 MW projects in Hubei and Shandong, along with a successful grid connection of the Hebei Jian Investment liquid air energy storage power station. The first 100 MW sodium-ion battery storage project has been grid-connected, along with the first 100 MW semi-solid battery storage project. The 30 MW flywheel storage independent frequency regulation station in Changzhi has also been connected to the grid. In 2024, the total scale of newly installed hybrid storage projects will reach 3.39 GW/9.386 GWh, primarily consisting of the “lithium iron phosphate + ” model, with the largest scale being lithium iron phosphate + flow battery storage.
In 2024, new energy storage installations from the power source side are expected to reach 13.47 GW/38.41 GWh, with a capacity share of 35.05%, primarily concentrated in Xinjiang and Inner Mongolia. On the grid side, new installations of independent/shared storage are projected at 26.32 GW/64.82 GWh, with a capacity share of 59.15% and a total investment exceeding 93.5 billion yuan, mainly in Jiangsu, Inner Mongolia, Shandong, Qinghai, and Xinjiang.
By 2024, user-side storage installations are estimated at 2.67 GW/6.35 GWh, with a capacity share of 5.79%, predominantly in Jiangsu, Zhejiang, and Guangdong. East China’s user-side installations will account for 1.45 GW/3.47 GWh, exceeding half of the national user-side capacity. Stand-alone commercial storage projects will make up about 80% of user-side capacity, while storage charging, solar storage charging, distributed photovoltaic storage, and microgrid projects will constitute around 20%.
Wang Zesheng highlighted that in 2024, a total of 1,189 energy storage procurement activities were completed domestically, with EPC/PC (including equipment), energy storage systems, cells, etc., reaching 63.51 GW/187.44 GWh. After removing repeated procurements for different types within the same project, the actual demand for energy storage systems corresponds to 61.04 GW/179.18 GWh, marking a year-on-year growth of 72.42%, with a total procurement amount of 158 billion yuan.
In 2024, major state-owned enterprises such as Huadian Group, State Energy Group, Guodian Investment, China National Nuclear Corporation, and China Energy Construction had procurement scales exceeding 8 GWh. Huadian Group had the largest procurement scale, exceeding 10 GWh.
In 2024, the procurement scale of energy storage from the five major and six minor power generation groups totaled 20.41 GW/61.72 GWh, accounting for over one-third of the national total. The five major power generation groups accounted for 12.46 GW/41.57 GWh, constituting more than two-thirds of the total from both groups. The six minor power generation groups accounted for 7.95 GW/20.14 GWh.
Xinjiang led the nation with a procurement scale of 6.48 GW/23.42 GWh, while Jiangsu, Inner Mongolia, and Shandong each surpassed 4 GW/10 GWh. The Northwest, North China, and East China regions are the main forces in the development of new energy storage.
In 2024, the decrease in the price of lithium iron phosphate storage systems is closely related to market supply and demand as well as raw material prices. The price of battery-grade lithium carbonate fell from over 100,000 yuan/ton to below 80,000 yuan/ton, slightly rebounding after hitting a low in September, stabilizing around an average of 75,550 yuan/ton in December.
The prices of 314 Ah and 280 Ah cells have continued to decline, decoupling from the strong correlation with battery-grade lithium carbonate prices after September, with market supply and demand becoming the main factors influencing prices. The market share of 300 Ah+ energy storage cells in the global large storage market is expected to approach 50% in Q4 2024, with 500 Ah+ cells anticipated to enter mass production in the second half of 2025.
As of now, the top 15 lithium-ion battery manufacturers have a total production capacity of nearly 1,700 GWh. In 2024, there are 93 planned lithium-ion battery production projects in the country with an annual production capacity of 832.2 GWh. Among these, 77 projects have disclosed a total investment of 303.775 billion yuan, with an expected annual output value of 292.316 billion yuan upon reaching full production.
There are 108 planned energy storage system integration manufacturing projects with an annual production capacity of 621.42 GWh, of which 76 have disclosed a total investment of 164.62 billion yuan, with an expected annual output value of 242.065 billion yuan upon reaching full production.
Forty-eight planned liquid flow battery manufacturing projects have an annual production capacity of 124.28 GWh, with 34 projects disclosing a total investment of 92.654 billion yuan, leading to an expected annual output value of 132.85 billion yuan upon reaching full production.
Forty-eight planned sodium-ion battery manufacturing projects are expected to have an annual production capacity of 254.7 GWh, with 39 projects disclosing a total investment of 126.77 billion yuan.
Forty-two planned solid/half-solid battery production projects are expected to achieve an annual production capacity of 235.5 GWh, with 31 projects disclosing a total investment of 127.529 billion yuan, and 16 projects disclosing expected annual output values totaling 96.6 billion yuan.
Eleven compressed air energy storage industry projects are planned to have an annual production capacity of 3.4 GW, with total investments exceeding 4.978 billion yuan, leading to expected annual output values exceeding 20.5 billion yuan.
Twenty-five flywheel energy storage manufacturing projects are projected to achieve an annual production capacity of 40.81 GW, with total investments exceeding 18.5 billion yuan, resulting in expected annual output values exceeding 36.6 billion yuan.
According to incomplete statistics from the Energy Storage Application Branch of CESA, by the end of 2024, nearly 30 provinces and cities have announced their value targets for the new energy storage industry chain and supply chain for 2025, with a total target exceeding 2 trillion yuan. The target for new energy storage value by 2027 is nearly 3 trillion yuan, and by 2030, this target is expected to approach 4 trillion yuan.
As of now, 26 Chinese enterprises, including CATL, EVE Energy, Guoxuan Hi-Tech, and Envision AESC, have jointly invested in 65 lithium-ion battery and energy storage system integration manufacturing projects overseas, with production/in-construction/planned capacities totaling 823 GWh. Among these, 34 projects have disclosed total investments of 355.8 billion yuan, primarily concentrated in countries such as the USA, Hungary, Morocco, Indonesia, Spain, Germany, and Southeast Asia.
According to the CESA energy storage application branch’s industry database, in 2024, the domestic energy storage cell shipment volume reached 301.04 GWh, marking a year-on-year increase of 55.87%; the global energy storage cell shipment volume reached 323 GWh, with a year-on-year growth of 53.81%. The top nine companies in the energy storage sector are all Chinese firms, and domestic companies’ shipments of energy storage lithium batteries now account for 93.2% of the global market. In 2024, approximately 43.3% of domestic energy storage cell shipments were exported, totaling roughly 130.4 GWh. The global market for energy storage cells is expected to maintain a growth rate of over 20% in 2025, with global shipments projected to exceed 390 GWh.
In the meeting, CESA’s energy storage application branch’s industry database tracked 115 global energy storage-related safety incidents. An analysis of the incidents indicates that there were 17 accidents in battery production facilities (including four in battery recycling plants), five during transportation, one at an engineering testing center, and 92 at energy storage plants, with a total scale of over 5 GWh for the affected plants. These incidents primarily involved the production, transportation, installation, commissioning, grid connection, and operation and maintenance phases.
Wang Zesheng noted that the development of China’s energy storage industry has transitioned from “policy-driven” to “innovation-driven,” and from “scale expansion” to “quality and efficiency first.” The construction of new energy storage plants must consider the current status of provincial grid frameworks, adjustment capabilities, and absorption capacities, integrating the three dimensions of optimal construction costs, maximum adjustment capabilities, and highest absorption capacities, employing systematic, collaborative, and holistic thinking to overcome developmental barriers.
China’s development is inseparable from the world, and the world’s development also requires China! The Chinese energy storage industry will engage in international cooperation with a stronger and more determined innovative spirit, better integrating into the global industrial chain, supply chain, and value chain, and working together with other countries to address global climate change and energy transition, continuously contributing Chinese wisdom and solutions for a green and low-carbon lifestyle for humanity.
Sun Ying, Deputy Director of the Energy Research Institute of the China Macroeconomic Research Institute, stated that the global energy structure is accelerating its transformation, with renewable energy generation capacity, particularly from photovoltaics and wind power, continuously increasing. Energy storage has become a crucial supporting technology for the new power system. In recent years, China’s energy storage industry has entered a rapid development phase, with diverse technology routes and breakthroughs in application scenarios. By the end of 2024, the installed capacity of new energy storage projects is expected to reach 73.76 million kilowatts, surpassing pumped storage. Lithium battery storage remains the market leader, with compressed air, flow batteries, and flywheel technologies being promoted rapidly, and multiple 300 MW compressed air energy storage projects, 100 MW flow battery energy storage projects, and MW-level flywheel storage projects under construction, showcasing a diversified development trend in storage technologies.
Sun Ying further emphasized that in February, the National Development and Reform Commission and the National Energy Administration issued a notice to deepen the market-oriented reform of on-grid electricity prices for renewable energy, promoting high-quality development. This initiative guides renewable energy participation in the power market while creating an outward environment for the marketization of energy storage. In the same month, the Ministry of Industry and Information Technology and other departments released the Action Plan for High-Quality Development of the New Energy Storage Manufacturing Industry, indicating direction for future technological innovation, industrial layout, and demonstration applications. The new energy storage industry is gradually transitioning from the initial stage of commercialization to large-scale development.
As renewable energy generation capacity further increases, new energy storage is expected to become a core means of ensuring power supply security and absorbing renewable energy, with a strategic opportunity period for industry development accelerating its arrival.
Li Shunda, President of the China Electric Power Equipment Management Association, highlighted that in 1987, China’s total installed power capacity was only 100 GW, but by the end of last year, it had surged to 350 GW, with wind and solar energy accounting for 42%. This achievement reflects the rapid development and structural optimization of China’s electric power industry over the past few decades. However, despite the significant increase in installed power capacity, the proportion of electricity in end-use energy is still less than 30%. In particular, in 2014, the government called for a push towards three transformations in Chinese manufacturing and four revolutions in energy along with international cooperation, indicating a need to intensify the development and application of renewable energy, especially in new energy storage technologies, which face new opportunities and challenges.
President Li also mentioned that in 2022, the China Electric Power Equipment Management Association proposed the initiative “Safe Supply and Orderly Transition” and elaborated on its core concept: “One Body, Three Characteristics” to guide the direction; “One Body” refers to the community of destiny of the new power system; “Three Characteristics” emphasize the importance of systematic, holistic, and collaborative approaches. The proposal also included “Two Verticals and Four Horizontals” for overarching management, where “Two Verticals” refers to unified planning and dispatch, while “Four Horizontals” pertains to unified standards, platforms (markets), calculations, and evaluations. The “Three Rings and Four Chains” ensure implementation, with “Three Rings” focusing on demand, issues, goals, results, and visible outcomes, and “Four Chains” including standard chains, quality chains, responsibility chains, and digital chains.
Looking into the future, President Li expressed the hope that the industry would focus on a significant undertaking, uniting efforts towards shared goals.
Jikan, Chairman of China Electric Power Equipment Group Energy Storage Technology Co., Ltd., stated that the company has shipped over 35 GWh of energy storage systems, maintaining a leading position in the industry. The firm has contributed to building the world’s largest virtual synchronous technology demonstration project, the first 100 MWh intelligent string-type grid energy storage project, and numerous other projects, actively responding to the country’s Belt and Road Initiative and providing high-quality service to Africa’s largest single-capacity electrochemical energy storage projects.
Jikan emphasized that as a practitioner and leader in the energy revolution, China Electric Power Equipment Group Energy Storage Technology Co., Ltd. is dedicated to sharing technological achievements with society, promoting research and application in energy storage technology, and contributing Chinese wisdom and solutions to the global energy transformation.
As the national team in the energy storage sector, China Electric Power Equipment Group Energy Storage Technology Co., Ltd. focuses on the national dual carbon strategy, seizing opportunities for constructing new power systems, and aims to become a world-class intelligent energy storage equipment system integrator.
Gao Xiubing, Executive President of Zhejiang Nandu Power Supply Co., Ltd., highlighted that the global energy industry is in a crucial stage of green and low-carbon transformation, with energy storage as a key support for large-scale and efficient development and utilization of renewable energy.
Gao emphasized that recent initiatives from the National Development and Reform Commission and the National Energy Administration promote renewable energy’s full market entry, establishing a price settlement mechanism to support sustainable development. This reform will accelerate marketization in the renewable energy sector, improve resource allocation efficiency, and facilitate high-quality development, presenting new opportunities for the energy storage industry.
Chen Jian, President of Xiamen Kehua Energy Technology Co., Ltd., stated that in 2024, new energy storage projects will enter the GWh era, transitioning to large-scale development conditions. This year, the energy storage industry is experiencing explosive growth in market size, technological breakthroughs, and policy innovations.
Chen acknowledged the industry’s rapid growth but also pointed out the challenges: competitive pricing leading to quality sacrifices for short-term market share, declining asset returns from energy storage, and the need for innovative commercial models. As the industry faces these pressures, it is essential to approach them with objective analysis and calm reflection.
In the context of global energy transition and dual carbon goals, Kehua Energy Technology consistently centers on customer needs, enhancing products and solutions through advanced technology. In 2024, the company achieved breakthroughs in liquid cooling technology and grid-type energy storage technology, introducing a comprehensive energy storage system solution integrating full liquid cooling and full-site ventilation.
Li Lei, co-founder and Chief Manufacturing Officer of Weijing Energy Storage Technology Co., Ltd., noted that with the global energy structure transformation, energy storage technology is becoming crucial in building new power systems. The Chinese government strongly promotes the “source-network-load-storage integration” model, rapidly increasing energy storage demand and presenting unprecedented development opportunities for flow batteries.
Li emphasized that flow batteries, as long-duration storage solutions, have a promising market outlook and are expected to significantly increase market share, becoming an essential component of the energy storage sector. Weijing Energy Storage has made significant advancements in industrialization, recently launching the world’s first GW-level flow battery factory in Zhuhai, marking the entry into large-scale production.
Li called for more enterprises and research institutions to join the innovation of flow battery technology, advancing the high-quality development of this trillion-level industrial chain through collaboration. He stressed that the progress of energy storage technology relies on cooperation, and only through collaboration can flow battery technology continue to innovate, reduce costs, and expand application markets.
During the high-end dialogue session for leading enterprises in new energy storage, representatives from exceptional companies discussed the influences of policy regulations, grid characteristics, meteorological factors, and electricity load on energy project pricing volatility. They noted that fluctuations in prices may lead to challenges in revenue stability and predictive returns.
The participants made several suggestions: first, the market-oriented development of energy storage will require higher safety and quality assurance standards, emphasizing performance and costs over the entire lifecycle. Second, establishing and improving new pricing mechanisms for energy storage as independent market entities in both spot and medium-term markets can enhance revenue levels. Lastly, regions should strengthen the comprehensive analysis of various flexibility resources, establishing flexible dynamic adjustment mechanisms that align with national policies and industry development needs.
Following extensive consultations between the China Chemical and Physical Power Industry Association and the German Energy Storage Association, both associations reached a consensus on the global impact and international cooperation of the China-Germany energy storage industry. They signed a Memorandum of Understanding for Cooperation in the Energy Storage Industry during the conference, actively promoting practical cooperation and global resource channel development between China and Germany.
At the signing ceremony, Wang Zesheng, Secretary-General of the China Chemical and Physical Power Industry Association, and Gerrit Lühring, Senior Expert from the German Energy Storage Association, signed the agreement. In the new context, both associations are committed to mutual cooperation, enhancing communication and coordination in the renewable energy and new energy storage industry chains and supply chains, broadening cooperation mechanisms, and elevating the level of technological innovation cooperation in new energy storage.
Academician Zhao Tianshou from the Chinese Academy of Sciences and Director of the Carbon Neutral Energy Research Institute at Southern University of Science and Technology delivered a keynote report on the development and application of safe long-duration flow battery storage technology. He noted that while China leads globally in installed solar and wind capacities, these energy sources face challenges in substituting fossil fuels and achieving carbon neutrality due to their variability and uncontrollability. Therefore, the study and application of energy storage technology, particularly flow batteries, are crucial.
Zhao emphasized that flow batteries possess high safety due to their use of aqueous solutions as electrolytes, maintaining stability under high temperatures and short circuits. Additionally, the energy and power of flow batteries can be decoupled, providing high flexibility to meet varying storage needs, and their longer cycle life reduces operational costs. Flow batteries are suitable for use on the generation side, grid side, and user side, showcasing significant market potential.
Despite their advantages, Zhao acknowledged that flow batteries still face cost challenges, particularly in the electrolytes and stacks. He argued that reducing flow battery costs hinges on improving current density and electrolyte utilization rates, which can decrease material requirements and enhance efficiency. Zhao also discussed the latest technological innovations in flow batteries, particularly the application of interdisciplinary research to better understand internal reaction mechanisms and improve battery performance.
He highlighted the innovation and application prospects of all-vanadium flow batteries, which feature a symmetrical electrode structure to reduce cross-contamination, extend battery life, and improve energy conversion efficiency. This technology is particularly suitable for large-scale storage, promising extensive market applications in various scenarios.
Zhao concluded that flow battery technology is rapidly advancing, attracting attention from governments and enterprises worldwide. With continuous breakthroughs in flow battery technology, especially regarding safety and flexibility, it is poised to play a vital role in renewable energy storage. However, to facilitate widespread application of this technology, the industry must overcome cost barriers and further promote technology innovation and the refinement of the supply chain.
Academician Shu Yinbiao, a member of the Chinese Academy of Engineering and Chairman of the China Electrotechnical Society, presented a report titled “New Energy Storage Aiding the Construction of New Power Systems.”
Visiting Professor Liu Yafang from Zhejiang University pointed out in her report on “New Situations and Tasks in the Development of New Energy Storage in China” that wind and solar power generation features volatility, randomness, and intermittency. The large-scale development of wind and solar power requires traditional power systems to enhance flexibility and regulation capabilities. New energy storage demonstrates significant value in ensuring the safe and stable operation of power systems, increasing the proportion of wind and solar power entering the grid, and improving the safety of power grids and the utilization of energy and resources.
Liu noted that new energy storage technology is diversifying, with composite and coupled storage applications beginning to emerge and showing broad prospects. Lithium battery storage is leading the way, with technologies such as compressed air storage, flow batteries, lead-carbon batteries, and molten salt storage quickly following suit, forming distinct technology tracks. Additionally, various storage technologies are increasingly being applied in a complementary manner, leading to a growing number of engineered demonstration projects. Coupled storage applications, such as flexible transformations of thermal power and virtual power plants, are expanding rapidly, alongside planning and construction of green hydrogen/ammonia/alcohol projects, deepening the exploration of integrated production processes between wind/solar power and hydrogen/ammonia/alcohol production.
In recent years, China’s new energy storage industry has taken off, with installed capacity significantly increasing. Data shows that in 2020, the proportion of new energy storage was approximately 8%, which surged to 56% by the end of 2024, surpassing pumped storage.
Liu analyzed that while the installed capacity of wind and solar power in China has increased dramatically, the growth in actual generation has lagged. By the end of 2024, wind power’s share of installed capacity will reach 42%, but its actual generation will only account for 18% of the total. This indicates insufficient absorption capacity for variable power sources in the power system, highlighting the urgent need for new energy storage to fill the flexibility gap. The relationship between the high-quality development of wind and solar power and new energy storage technology is closely linked, and the policy requirements for the market-oriented high-quality development of renewable energy generation have set a clear direction for further rapid and high-quality development of new energy storage.
Since the 14th Five-Year Plan, the state has integrated comprehensive evaluations of the total carbon emissions and intensity of local governments, industrial parks, and enterprises into its assessments, implementing a mandatory “dual control” system for carbon emissions. According to the Work Plan for Accelerating the Establishment of a Dual Control System for Carbon Emissions released by the State Council in 2024, a greenhouse gas emission factor database will be established by 2025, and carbon footprint accounting standards will be refined. This means local governments and enterprises must further intensify efforts to deploy energy-saving and carbon-reduction measures.
Liu emphasized that the “eighteen skills” of new energy storage can aid enterprises in energy saving, emission reduction, and enhancing efficiency. It serves as a key technology for high-quality development of centralized and distributed wind and solar power generation, necessary for efficient utilization of electricity, heat, cooling, and potential energy in industrial and commercial enterprises, and an effective tool for creating zero-carbon industrial parks through comprehensive utilization and recycling of various renewable resources.
Since 2024, a series of policies and regulations have been introduced to build the electricity market, strengthen grid scheduling, create new power systems, develop high-quality distribution networks, promote renewable energy substitution, and establish dual control of carbon emissions. These developments have opened wide market space for new energy storage technology, paving the way for its rapid development. The government work report released in March 2025 further emphasized new energy storage as “a rapidly developing emerging industry,” underscoring the recognition of the central government regarding new energy storage and establishing a solid policy foundation for future development.
Finally, Liu expressed hope for colleagues in the new energy storage sector to strengthen innovation and continuously improve, aiming for success.
Wang Delin, Deputy Chief Engineer of the Dispatch Control Center at the State Grid Corporation of China, noted that the overall structure of China’s electricity market presents spatial alternation, temporal succession, and object complementarity. Various markets operate in synergy to ensure power supply, facilitate clean energy absorption, efficiently allocate resources, discover electricity commodity prices, incentivize participation in system regulation, and guide investment in power source and grid planning.
Wang indicated that the generation capacity market refers to a market where reliable installed capacity is the trading object. Some generators find it challenging to recover all investment and operating costs solely through the spot market. Hence, to ensure adequate total installed capacity and provide necessary compensation to units supplying reliable capacity, a capacity cost recovery mechanism needs to be established, mainly categorized into three types: scarcity pricing mechanisms, capacity cost compensation mechanisms, and capacity markets.
Wang noted that, overall, under the current rapid industrial development, virtual power plant operators actively aggregate adjustable loads, user-side storage, distributed power sources, and other entities to rapidly seize resources and expand scale; however, the actual adjustable capacity remains relatively small, offering limited contributions to grid regulation. From the perspective of resource aggregation scale, virtual power plants are in a phase of enlarging the overall scale, but the actual adjustable capacity currently only accounts for about 1% of the maximum load.
Wang pointed out that there are significant income disparities among virtual power plants due to various factors, including the types of aggregated resources, project scale, technical capabilities, supply and demand scenarios, and market types. In key provinces, 52 projects generate annual incomes ranging from 2 to 3 million yuan, with only five projects turning a profit after excluding annual operating expenses. Additionally, the income obtained by aggregating users in typical projects ranges from 0.05% to 6.48% of their annual electricity costs, resulting in a weak sense of benefit from participating in system regulation via virtual power plants. Currently, virtual power plants primarily participate in ancillary services and demand response, showing limited economic viability based on typical projects.
Wang observed that state-owned capital remains the main force behind current investments in virtual power plants, with private capital accelerating its entry into the sector. State-owned capital investments are mainly from power generation groups and grid enterprises. In terms of capital types, 66% of operational virtual power plants are invested by state-owned enterprises, while 34% are funded by private enterprises, with the latter notably increasing in regions like Shanghai and Fujian, where over half of operational virtual power plants are privately owned.
Zheng Yaodong, an expert receiving special government allowances and Vice Chair of the IEEE PES Energy Storage Technical Committee (China), analyzed the current state of profit models for new energy storage in his report on Exploring the Operations of New Energy Storage.
Chen Xiang, Senior Vice President of Huizhou EVE Energy Co., Ltd. and President of Wuhan EVE Storage Co., Ltd., noted in his report titled Technology and Quality as Dual Engines Accelerating Energy Storage Scale-Up that the global energy storage market is growing much faster than expected. China, North America, and Europe remain the three core markets leading the way, while emerging markets in Central Asia, India, and Southeast Asia are exhibiting explosive growth trends.
He observed that demand in different markets varies significantly: some regions focus on ensuring basic electricity supply, while others prioritize optimizing energy structures. This diversification compels companies to design products and solutions from a more flexible perspective.
Chen emphasized that the domestic market is undergoing a profound transition from policy-driven to market-driven conditions. The previous model, reliant on policy subsidies and technological breakthroughs, is now facing tests from market mechanisms such as peak-and-valley price arbitrage and capacity leasing. In contrast, the more mature commercial models and financial capabilities in overseas markets offer valuable insights for Chinese companies. This discrepancy implies that the global layout of Chinese enterprises cannot simply replicate domestic experiences but must deeply integrate into local industrial ecosystems.
Under the dual drive of business layout and technological innovation, EVE Energy has built a deeply collaborative ecosystem encompassing consumer, power, and energy storage batteries. In product iteration, the company transitioned from producing 50 Ah cells to large iron lithium batteries of 680 Ah. The 60 GWh super factory established in Jingmen last year has already begun pilot production of 680 Ah cells. The company plans to complete two 100 MW demonstration stations by June, validating the long-term reliability of large-capacity cells in real-world conditions to ensure ongoing breakthroughs in complex market environments.
Yang Kai, Director of the Energy Storage Product Research Institute at Jiangsu Trina Storage Co., Ltd., discussed in his report titled Focusing on Scenarios, Empowering the Future that regional diversity in scenarios enriches the global energy storage market, which urgently requires scenario-based solutions. The era of one-size-fits-all products has ended, giving way to scenario-based solutions in energy storage.
Yang pointed out that the Northwest region, as a core area for constructing large wind and solar bases, faces complex and harsh natural environments, often dealing with high altitudes, low temperatures, and strong sandstorms. This context presents unique demands for the environmental adaptability of energy storage devices to handle extreme conditions and adverse weather.
Yang noted that policies in multiple regions have highlighted the need for long-duration energy storage technologies. In emergency situations, lithium battery storage plants can leverage their substantial immediate supply capacity while demonstrating efficiency and flexibility, effectively ensuring the stability and reliability of power supply.
Yang Qingheng, Vice President of Shanghai Pylon Energy Technology Co., Ltd., emphasized in his report titled Upholding Bottom Lines, Breaking Through Limits, and Reshaping the “Value” of Energy Storage that the current energy storage sector faces intense price competition, with some enterprises sacrificing quality for short-term market share. However, he believes that sustainable cost reduction can only be achieved through technological upgrades and cost optimization, avoiding a vicious cycle in the industry.
Yang highlighted the dangers of low-price competition, which sacrifices long-term value for short-term profits, leading to diminished profit margins, increased R&D and quality risks, and a disordered market. He proposed three pathways to construct a rational competitive ecosystem: first, technology-driven innovation to build competitive moats; second, market diversification from “single-point breakthroughs” to “global layouts”; and third, establishing industry standards and self-discipline to maintain a baseline for healthy competition.
During the conference, Robert Herzner, representative of the Federal Foreign Trade and Investment Agency of Germany in China, noted in his report on Stimulating Market Opportunities: Market Analysis of the German Energy Storage Industry that despite challenges, the electrification of the European automotive industry continues; as product exports face restrictions, Chinese investments in Europe have significantly increased. In the field of LFP batteries, there are more opportunities for cooperation in recycling and cathode/anode material production. The battery regulations approved by the EU enhance the sustainability and circularity of all batteries in the EU market, thereby supporting the EU’s energy transition and industrial competitiveness.
During the event, the 2025 Annual Award for Distinguished Individuals in China’s Energy Storage Industry was presented. Awardees included Tian Zhiguo, Party Branch Secretary and Chairman of Xuchang XJ Electric Storage Technology
