In 2024, the phrase “develop new energy storage” was included in the government work report for the first time. Guangdong is seizing new opportunities in this emerging sector and aims to establish the new energy storage industry as a strategic pillar of its manufacturing sector. The Guiding Opinions on Promoting the High-Quality Development of the New Energy Storage Industry in Guangdong Province propose achieving an installed capacity of 3 million kilowatts by 2025, with expected revenue from the new energy storage industry reaching 600 billion yuan.
With favorable policies in place, major companies like Southern Power Grid are ramping up efforts to accelerate their new energy storage initiatives. Recently, Southern Power Grid Technology, the flagship for new energy storage under Southern Power Grid, announced significant wins, securing two EPC projects: the user-side storage project in Jiangsu Huiran and an independent storage project in Shaoguan Zhenjiang, with a total contract value of approximately 370 million yuan and a total storage capacity exceeding 400 MWh.
The Jiangsu Huiran user-side storage project, funded by Guangzhou Energy Storage Group Co., Ltd., boasts an installed capacity of 100 MW/300 MWh. This marks Southern Power Grid Technology’s first user-side storage project and the largest of its kind in China. Upon commissioning, the project is expected to reduce electricity costs for enterprises through peak-valley arbitrage and demand response, generating an annual profit of nearly 60 million yuan and alleviating pressure on the power grid.
The Shaoguan Zhenjiang independent storage project has a construction capacity of 66 MW/111 MWh. It utilizes an EMS developed by Southern Power Grid, allowing efficient and flexible use of high-voltage cascading and low-voltage boosting storage systems for frequency modulation. Once operational, this project will provide power support to the grid, participate in the auxiliary services market, enhance the consumption of renewable energy, and improve the safety and flexibility of the regional power system.
In recent years, Southern Power Grid Technology has focused on the power grid business, creating digital and green products and services for a wide range of customers. To date, it has undertaken nearly 20 EPC projects across power sources, grid sides, and user sides, demonstrating the industry’s strong recognition of the company.
New energy storage technologies are crucial for building a modern power system. As a leading innovator in this field, Southern Power Grid Technology has over a decade of experience in technology research and engineering applications. In 2023, the company was awarded the first “lithium-ion battery + supercapacitor” hybrid frequency modulation project in the southern region, at Jinwan Power Co., Ltd., marking its official entry into commercial operation. This pioneering project utilized a mixed energy storage frequency modulation solution comprising 16 MW/8 MWh lithium iron phosphate batteries + 4 MW supercapacitors, becoming a benchmark for supercapacitor energy storage systems in China.
That same year, a national new energy storage innovation center led by Southern Power Grid received approval from the Ministry of Industry and Information Technology. This center is the only national innovation hub in the new energy storage sector and the first national-local co-built innovation center in Guangdong. The center’s core team includes Southern Power Grid Technology and 13 leading companies in the new energy storage supply chain, focusing on large-capacity, high-safety, long-lifetime, and high-efficiency scaling of new energy storage technologies and equipment.
Another storage giant under Southern Power Grid, Southern Power Storage, is committed to a multi-route application strategy for new energy storage, promoting various technologies to reach maturity through practical applications. By 2024, Southern Power Storage’s total capacity for pumped storage projects—operational, under construction, and planned—successfully surpassed 10 million kW. Construction is accelerating for nine ongoing pumped storage projects.
Significant progress has been made in the new energy storage sector, with key demonstration projects like Yunnan Wenshan Qiubei advancing rapidly. Additionally, efforts are underway to construct China’s first megawatt-level AEM electrolyzer hydrogen integration station. The company has completed the country’s first 40 MWh network-type sodium-ion battery energy storage system, with one outcome included in the national promotion directory for major technological equipment by the Ministry of Industry and Information Technology.
By 2025, Southern Power Storage is set to expedite the establishment of national pilot demonstration projects for new energy storage, comparing the performance of high-rate sodium battery technology with lithium battery technology. The company aims to explore the application value of new energy storage in various areas, including the integration of electric vehicles, the cascading use of power batteries, synergy between hydrogen and electricity, and energy storage alternatives for distribution networks.
With leading companies such as Southern Power Grid, BYD, Penghui Energy, Yiwei Lithium Energy, and Xingwangda in Guangdong Province, the province’s proactive approach in the new energy sector is expected to drive high-quality development for enterprises. Southern Power Grid has pledged to continue leveraging the national new energy storage innovation center’s resources to advance high-quality development in this field, breaking through key technologies for large-capacity, high-safety, long-lifetime, and high-efficiency scaling of storage systems, and continuously launching new integrated solutions suitable for various application scenarios.
