The energy storage industry is shifting from a focus on “price competition” to “value competition.” According to Wang Zesheng, the Secretary-General of the China Chemical and Physical Power Industry Association, this transformation is driven by innovation and cross-sector collaboration. He emphasized that the industry is transitioning from being “policy-driven” to “innovation-driven” and from “scale expansion” to prioritizing “quality and efficiency,” marking a new phase of high-quality development for China’s energy storage sector.
The 15th China International Energy Storage Conference and Exhibition took place in Hangzhou from March 23 to 26, attracting thousands of representatives from the industry and supply chain to discuss opportunities, challenges, and potential collaborations.
The event was characterized by its lively atmosphere, with every session, from the main forum to sub-forums, filled to capacity. Some attendees had to stand throughout the presentations due to the lack of available seats. The exhibition area was bustling with potential clients actively visiting booths and seeking information.
The energy storage industry has shown promising growth in market scale, technological advancements, and policy innovation. According to the China Chemical and Physical Power Industry Association’s Energy Storage Branch, by the end of 2024, China’s cumulative installed capacity of new energy storage reached 74.66 GW/176.45 GWh, marking a year-on-year increase of 131.86% in power and 163.8% in capacity, surpassing pumped hydro storage for the first time.
As the global energy structure undergoes rapid transformation, with renewable energy sources like solar and wind power expanding, energy storage has become a crucial support for the new electric power system. Sun Ying, Deputy Director of the Energy Research Institute at the China Academy of Macroeconomic Research, noted that the energy storage industry has entered a period of rapid development, with diverse technological pathways and continuously evolving application scenarios.
Statistics from 2024 indicate that lithium battery storage dominates the market, while technologies such as compressed air, flow batteries, and flywheel storage are gaining traction. Multiple large-scale projects in these areas are under construction, showcasing the diversification of energy storage technologies.
With the accelerating growth of the renewable energy sector, the energy storage industry is entering a period of explosive growth. The China Chemical and Physical Power Industry Association’s Energy Storage Branch forecasts that by 2025, the total output value of China’s new energy storage industrial chain and supply chain will exceed 2 trillion yuan. This figure is expected to reach 3 trillion yuan by 2027 and approach 4 trillion yuan by 2030.
In the past year, the energy storage industry has experienced explosive growth in market scale. Cui Jian, President of Xiamen Kehua Energy Technology Co., Ltd., stated that the new energy storage industry has entered the GWh era and is moving towards large-scale commercial application.
The new energy storage sector is gradually transitioning from the initial stages of commercialization to large-scale development. Sun Ying remarked that as the scale of renewable energy generation continues to rise, new energy storage will become a core method for ensuring power supply security and facilitating the absorption of renewable energy. The strategic opportunity for the industry’s development is accelerating.
Recently, the National Development and Reform Commission and the National Energy Administration jointly issued a notice to deepen the market-oriented reform of renewable energy grid prices to promote high-quality development in the sector. Gao Xiubing, Executive President of Southern Power Source, believes this reform will advance the marketization process of the renewable energy sector, enhance efficient resource allocation, and bring new growth opportunities to the energy storage industry.
How to Reshape Energy Storage Value is a key topic of discussion among conference attendees. Shun Yinbiao, an academician at the Chinese Academy of Engineering and Chairman of the China Electric Power Research Institute, highlighted the intense price competition in the storage sector, where some companies sacrifice quality for short-term market share.
Yang Qingheng, Vice President of Pylon Technologies, pointed out that sacrificing long-term value for immediate gains leads to collapsing profit margins and market disorder in the energy storage industry. He emphasized that sustainable cost reduction can only be achieved through technological upgrades and cost optimization.
Zheng Hanbo, General Manager of the Energy Storage Division at Envision Energy, shares this perspective, stating that energy storage must achieve two values: participation in electricity market transactions and auxiliary services, and providing timely support during grid instability.
Zheng analyzed the shift from policy-driven storage to market-driven storage, noting that the era where downstream customers only focused on price has ended. Products that can effectively regulate in the new power system will have a competitive edge.
It is widely recognized within the industry that the energy storage sector is entering a “value output” era. However, opportunities often coexist with risks. The industry is still exploring transformations, new technologies, business models, and trends.
Cui Jian identified several issues, including declining returns on storage assets, the urgent need for innovative business models, increasing safety incidents, and the disjointedness caused by rapid industry development. He emphasized that these challenges are part of the path toward high-quality development that must be confronted with clear-eyed thinking.
Ruan Peng, Deputy General Manager of Pinggao Energy Storage Technology, stressed the importance of enhancing performance and reliability through technological innovation and production improvements in the energy storage sector. He advocates for addressing power regulation and energy adjustment needs to meet the demands of the electric power system.
Chen Xiang, Vice President of Yiwei Lithium Energy, expressed concerns over the challenges that may accompany high growth. He noted that the domestic market is undergoing a profound transition from policy-driven to market-driven dynamics, facing tests related to peak-valley electricity price arbitrage and capacity leasing.
Wang Zesheng believes that the construction of new energy storage stations should comprehensively consider the current status of provincial grid frameworks, regulation capabilities, and absorption capacities. He suggests combining these factors with optimal construction costs, robust regulatory capabilities, and maximum absorption capacities to overcome development obstacles.
