The energy storage industry is experiencing a surge in demand as companies rush to meet tight deadlines for project completion and product delivery. This phenomenon, referred to as the “531 installation rush,” has been marked by rising anti-competitive sentiments among industry players.
As of early April 2025, the prices for commercial energy storage cabinets have plummeted to unprecedented lows, with rates around 0.499 yuan/Wh, 0.486 yuan/Wh, and 0.478 yuan/Wh. This decline is merely the tip of the iceberg in the ongoing price competition within the energy storage sector.
During the recent 15th Energy Storage Conference and Exhibition, it was reported that Wan Jin Energy Storage’s 2.5MW/5MWh liquid-cooled DC booth is now priced at 0.0998 yuan/Wh. Compared to last year, this year’s event has seen a noticeable decrease in enthusiasm.
The two most frequently mentioned terms at the conference were Document 136 and anti-competition. In February, the National Development and Reform Commission’s Energy Bureau issued a notice aimed at deepening market reforms for new energy pricing, which aims to enhance the market environment for energy storage development.
Market reactions have varied, with energy storage companies exhibiting a mix of enthusiasm, setbacks, confusion, and perseverance. Concurrently, increasing competition is pushing China’s energy storage sector onto the global stage, with domestic price wars extending to international markets.
The 531 installation rush has led to mixed expectations for the second half of the year. Document 136 encourages new energy sources to participate in market transactions and establishes a pricing mechanism that gradually reduces guaranteed energy supply proportions for existing projects.
Recent reports from Ye Jun, Deputy General Manager and Chief Engineer at Shanghai Electric Power Design Institute, indicate that all power generation groups are racing to complete projects by May 31. “We are swamped with projects for engineering contracting and design planning,” he noted.
However, Chen Yusi, Executive Vice President of Zhejiang Wolong Energy Storage Systems, cautioned that despite the rush to meet installation deadlines, product prices remain low. Furthermore, many industry experts predict that the capacity enforced under previous regulations may lead to idle resources once Document 136 takes effect.
Jiang Xinyu, Chairman of Guangzhou Zhiguang Energy Storage, commented that the rapid growth of energy storage in recent years was largely driven by the domestic electric vehicle industry and mandatory storage policies. “The year 2025 may see a stark contrast. Before May 31, companies are hurriedly meeting requirements; however, many may face idle capacity in the latter half of the year,” he said.
Liu Jian, Deputy Director and Researcher at the National Development and Reform Commission’s Energy Research Institute, expressed concerns about the unpredictability of revenue from energy storage due to the changes introduced by Document 136.
Li Bin, Deputy General Manager at Anhui Conch Ronghua Energy Storage Technology, described Document 136 as a “major shock” to the industry. Zhang Peng, Deputy General Manager of Hongzheng Energy Storage, echoed this sentiment, raising doubts about the future profitability of new energy sources.
In contrast, Lin Xuefeng, Deputy Chief Engineer at China Energy Construction Group Xinjiang Electric Power Design Institute, predicted that independent energy storage will become a primary form of new storage, with spot trading emerging as a significant revenue model.
Commenting on the cancellation of mandatory storage, Hong Qifeng, Product Director at Jiangsu Beiren, anticipated better growth for commercial energy storage this year. Gao Xiubing, Executive President of Nandu Power Supply, expressed that energy storage prices are heading toward a more rational trajectory.
“The removal of mandatory storage may have a short-term negative impact on the development of new energy storage, particularly in Xinjiang,” said Zhai Xujing from State Grid Xinjiang Electric Power Company. However, he believes that in the long run, this policy will help new energy storage survive in the market.
Following the transition to market-based trading, the demand for new energy storage is expected to grow. Wang Deke, Sales Director of the Energy Storage Division at Beijing Jianheng Certification Center, emphasized that with the end of mandatory storage, companies will prioritize high-quality, safe, and cost-effective products.
Li Zhijie from Xi’an Singularity Energy Co. noted a potential dip in investment enthusiasm for commercial energy storage during the first half of the year, but anticipated a surge in demand in the latter half as equipment clears.
The sentiment of anti-competition is rising, with many foreign companies opting for collaboration over competition. Industry insiders recognize that the market is shifting toward a phase of elimination, but have yet to reach a climax.
Peng Kuankuan, Deputy General Manager of the Domestic Marketing Division at Pion Energy Technology, expressed concerns about the industry’s profitability amidst fierce competition. “With over 200,000 energy storage companies in a market space of 180 billion, it’s unrealistic for all to thrive,” he remarked.
Amidst these challenges, some industry leaders are optimistic about the long-term prospects of energy storage. Chen Yusi believes that while competition is ongoing, it may ultimately lead to improvements. Li Zhijie added that only the most resilient companies will survive this competitive cycle.
Hong Qifeng suggested that the industry’s turning point could be near, as battery prices have significantly decreased, prompting a greater focus on efficiency and performance rather than just cost.
While some call for an end to excessive competition, others are reflecting on its necessity or seeking solutions. Lin Xuefeng pointed out that international expansion is a vital strategy for overcoming internal competition, despite potential trade barriers.
Gao Xiubing noted that the level of competition is lower overseas, as there are no mandatory storage requirements. International customers prioritize reliability and safety rather than merely the lowest price.
As Chinese companies increasingly view international expansion as a means to mitigate competition, the question remains: how will foreign firms respond to this shift?
Zhao Liang, a client manager at Bloomberg New Energy Finance, shared an anecdote from an energy summit in Houston where the discussion evolved from competing with Chinese battery manufacturers to exploring collaboration opportunities.
