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New energy storage key to spur economy

Unprecedented innovation speeds up country's decarbonization goals

By ZHENG XIN | China Daily | Updated: 2025-05-07 11:05
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Workers conduct inspections at an energy storage station in Xingtai, Hebei province, in January. [Photo/Xinhua]

As the industry's scale surpassed the 75 million-kW threshold, research and development efforts entered a phase of accelerated iteration driving continuous improvement and diversification, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

Technological innovation in energy storage is also advancing at an equally rapid pace and this dynamic innovation ecosystem is crucial for sustaining the industry's rapid growth and ensuring its long-term competitiveness, he said.

Bian Guangqi, deputy director-general of the NEA's energy saving and technology equipment department, said the government will continuously encourage the diversified development of new energy storage technologies.

Furthermore, Bian highlighted the ongoing efforts to "accelerate the improvement of the new energy storage standard system and strive to promote innovation in the new energy storage sector".

Bian said that as China's new energy storage industry is developing rapidly, installed capacity of new energy storage nationwide as of end-February had exceeded 75 million kW.

In 2024, the equivalent utilization hours of new energy storage stood at approximately 1,000 hours, doubling that of 2023, effectively supporting the construction of new power systems, he said.

With competition rising in China's energy storage market, Chinese companies are accelerating their expansion into international markets, with a particular focus on emerging economies, said Sun Chuanwang, a professor at the China Center for Energy Economics Research at Xiamen University.

New energy power equipment maker Sungrow Power Supply signed three landmark energy storage contracts last year with Saudi Arabia's Algihaz Holding, becoming the world's largest grid-side storage order. Each project will have a capacity of 2.6 gigawatt-hours, totaling 7.8 GWh.

In addition, with technological advances, Chinese companies — including Huawei and Envision Group — have also secured major energy storage contracts around the world.

While installed capacity is rapidly increasing, the energy storage sector is also facing a series of challenges.

Regarding the current issue of the "price war" led by intense internal competition, Tian Qingjun, senior vice-president of Envision Group, said the price war not only affects the profit margins of companies, but also hampers the sustainable development of the energy storage sector.

Tian called for the industry to avoid irrational competition that harms sustainable development.

Bian said the administration will further promote the orderly development of new energy storage technology, while vigorously supporting technological innovation, continuing to encourage the diversified development of new energy storage technologies and accelerating the improvement of the new energy storage standard systems.

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