Sichuan Adds 27 Grid-Side Storage Projects to 2025 Roster, Signaling Regional Push for Power System Flexibility

Chengdu-led initiatives dominate the list, with compressed air and hybrid battery projects highlighting diversified technology strategies

The Sichuan Provincial Development and Reform Commission (DRC) and the Sichuan Energy Bureau have officially released the “2025 Grid-Side New Energy Storage Project List,” comprising 27 storage projects across the province. The notice, dated July 9, 2025, directs local authorities, grid companies, and project developers to expedite construction, ensure safety compliance, and regularly report progress.

The inclusion of these projects marks a continuation of Sichuan’s strategy to scale up non-hydro grid flexibility in tandem with growing renewable integration. Projects that fail to demonstrate substantive construction progress within one year of the notice risk removal from the list, reinforcing the province’s push for implementation over intent.

Provincial Backing to Accelerate Energy Storage Buildout

Issued under official document Chuan Fa Gai Neng Yuan [2025] No. 309, the notification underscores the province’s commitment to grid-side energy storage as a means of enhancing system stability and optimizing resource allocation. Local Development and Reform Commissions and energy authorities are tasked with coordinating inter-agency efforts, while grid operators such as State Grid Sichuan are expected to facilitate access and interconnection.

The notice stipulates that all stakeholders—particularly project owners—must adhere to market-based principles in project advancement, while also complying with safety, fire protection, and regulatory oversight. Monthly progress reporting is mandatory, and the policy reiterates that failure to commence substantive construction within a year will lead to project disqualification from the list.

Technology Diversity Reflects Strategic Positioning

While electrochemical storage continues to dominate—with most projects sized at 100MW/200MWh—Sichuan is also experimenting with a range of storage technologies. Notably, the 300MW/2400MWh compressed air energy storage (CAES) project in Chengdu Eastern New Area stands out as the largest capacity installation and the only CAES project on the list.

Other variations include:

  • A hybrid electrochemical + supercapacitor project in Pengzhou (100MW/200MWh + 2.5MW supercapacitor), reflecting interest in fast-response ancillary services

  • A mixed lithium iron phosphate/sodium-ion battery system in Leshan’s Qianwei County

  • A vanadium redox flow battery project in Jiajiang County, offering long-duration discharge capabilities

These examples suggest a strategic tilt toward technology diversification to support various grid functions, from peak shaving to black-start capability.

Policy Implementation Mechanics and Compliance Framework

The policy stipulates clear accountability:

  • Local governments must coordinate and supervise project rollout.

  • Grid enterprises are expected to expedite interconnection procedures.

  • Project developers must follow market-driven financing and implementation models.

  • Safety and fire management are prioritized, with site-level responsibility assigned to project owners.

Crucially, projects will be delisted if not meaningfully under construction by July 2026, injecting a strong compliance signal into the project pipeline. Progress updates are to be submitted monthly, reinforcing bureaucratic visibility and minimizing lag.

Market and Competitive Landscape Outlook

The approved list suggests that energy storage is becoming an essential infrastructure class in Sichuan, not merely an auxiliary service. With capacity additions ranging predominantly in the 100–200MW bracket, developers appear to be responding to a provincial market increasingly shaped by:

  • Renewable intermittency

  • Peak demand differentials

  • Grid congestion in urban clusters like Chengdu

The integration of CAES, hybrid chemistries, and flow batteries may position Sichuan as a testing ground for scaling non-lithium storage technologies—though most commercial traction remains in lithium-based solutions.

Conclusion

Sichuan’s 2025 grid-side storage project list represents a significant step in expanding the province’s energy flexibility infrastructure. As construction progresses and projects begin operation, industry observers will closely watch for updates on revenue mechanisms, dispatch roles, and integration challenges—all of which will determine whether Sichuan’s diversified storage ambitions can translate into lasting grid resilience.