Lithium-ion and emerging technologies dominate provincial storage roster as Energy Administration of Shandong Province clears 96 projects for grid integration
Shandong Province has officially announced the approval of 96 new energy storage projects totaling 18.6292 gigawatts (GW) for 2025, in a move that reinforces its role as a national leader in energy transition and power system flexibility. The projects—ranging from lithium-ion battery installations to compressed air and flywheel storage systems—have been publicly listed by the Energy Administration of Shandong Province as part of its annual new energy storage project registry.
According to the public notice released on July 9, the inclusion process was based on recommendations from municipal governments and expert reviews in accordance with the bureau’s earlier call for project applications. The 2025 storage roster includes 81 lithium-ion peak-shaving projects, two compressed air energy storage (CAES) systems, one flow battery installation, seven frequency regulation units, and five categorized under other new energy storage technologies. The public comment period will remain open from July 9 to July 15.
Policy Continuity and Technological Diversification
This announcement marks a significant continuation of Shandong’s multi-year strategy to accelerate the deployment of new energy storage systems in support of its dual-carbon goals. The provincial government has consistently promoted a diversified portfolio of energy storage technologies to address different grid stability and load-shifting needs.
Lithium-ion batteries remain the dominant technology, accounting for more than 80 of the 96 listed projects. However, the inclusion of non-lithium systems such as compressed air, liquid air, flywheel, molten salt, and even carbon dioxide-based thermal storage indicates a deliberate shift toward technological diversification and risk mitigation.
Project Breakdown and Implementation Outlook
The 81 lithium-ion storage projects account for the lion’s share of the 18.6GW, with most systems sized in the 100–400 megawatt (MW) range. Notable entries include:
A 510MW/1020MWh shared storage station
A 600MW/1800MWh flow battery project in its second phase
A 500MW/1000MWh grid-forming lithium-ion battery plant
In the compressed air segment, two large-scale projects—one in Jinan's Zhangqiu District and another in Jining’s Sishui County—account for a combined 500MW and 2200MWh of storage. These systems are notable for their long-duration discharge capacity and potential grid inertia support.
The inclusion of specialized applications such as frequency regulation and multi-technology hybrid systems further reflects the province’s effort to align with national mandates for smarter and more flexible power systems. Projects like the 100MW flywheel storage station in Yantai exemplify high-power, short-duration technologies geared toward frequency modulation rather than energy shifting.
Industry Participation and Geographic Distribution
Dozens of private and state-backed firms feature in the list, ranging from established developers to newer entrants. Notably, investment activity is distributed across all major prefectures, including Dongying, Yantai, Zibo, Weifang, and Jining, suggesting an even regional deployment pattern that may help mitigate localized grid congestion and renewable curtailment.
Market Implications
The release of the 2025 project list marks a strong policy signal for Shandong’s commitment to accelerating energy storage deployment. Certain projects stand out for their strategic significance and policy positioning. Notably, the 200 MW/440 MWh flow battery project, the only flow-based system on the list, is set to benefit from Shandong’s “policy–technology–revenue” triple-guarantee mechanism. This suggests prioritized access to regulatory support, technical validation, and market-based revenue opportunities—positioning it as a provincial benchmark for long-duration storage.
More broadly, the diversity of technologies and application types included in the 18.6 GW docket offers a valuable testing ground for evaluating operational performance under varying grid scenarios. As the July 15 comment period draws to a close, attention will shift to project readiness assessments, financing strategies, and the mechanisms by which these projects will be integrated into Shandong’s evolving power market architecture.
For detailed entry list, refer to the official notice here: