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Guest User 7/15/26 Guest User 7/15/26

Bookmark This! Six Long-Duration Energy Storage Technology Pathways, Three Revenue Models, and Prospects for Large-Scale Deployment

With multiple supportive policies being introduced, long-duration energy storage (LDES) is entering a period of significant growth opportunities!

Recently, the State Council of China issued the “15th Five-Year Plan Carbon Peak Action Plan”, while the National Energy Administration released the “Energy Sector Energy Conservation and Carbon Reduction Action Plan (2026–2028)”. Both policy documents explicitly emphasized the development of long-duration energy storage, indicating that LDES is gradually becoming an essential component of the new power system.

Currently, LDES technologies are developing toward greater diversification. Technologies such as compressed air energy storage (CAES), flow batteries, and hydrogen energy storage each demonstrate different advantages and limitations in terms of technology maturity, application scenarios, and construction costs.

This article provides a systematic analysis of LDES from three perspectives: technology development, revenue structures, and prospects for large-scale deployment, offering industry insights and references.

Six Technology Pathways Leading LDES Development for Diverse Applications

Long-duration energy storage technologies are diverse and mainly include:

Physical energy storage technologies, represented by pumped hydro storage, compressed air energy storage, and gravity energy storage;
Electrochemical energy storage technologies, represented by flow batteries and metal-air batteries;
Thermal energy storage (including cooling storage) and chemical energy storage technologies, represented by hydrogen energy storage.

Among them, pumped hydro storage is currently the most mature and widely deployed long-duration energy storage technology.

As of the first quarter of 2026, China’s operational pumped hydro storage capacity had reached 67.09 GW.

At present, pumped hydro storage is primarily based on large-scale fixed-speed pumped hydro power stations. However, as suitable sites for large-scale pumped hydro projects become increasingly limited, the development of small- and medium-scale pumped hydro storage projects is gradually increasing.

Gravity Energy Storage

The operating principle of gravity energy storage is similar to pumped hydro storage. It mainly uses the physical lifting and lowering of solid masses to drive power generation equipment, thereby achieving energy storage and discharge.

Currently, China’s 100 MWh-scale gravity energy storage tower demonstration project has been completed in Rudong, Jiangsu Province, and has entered the grid connection commissioning stage.

The project, invested and developed by China Tianying, has an energy storage capacity of 100 MWh and a power output of 25–26 MW. It is expected to be connected to the grid and begin operation by the end of 2026.

Compressed Air Energy Storage

Compressed air energy storage is another long-duration energy storage technology with significant potential for large-scale application.

The technology converts electricity from off-peak periods or curtailed renewable energy into compressed air pressure energy and thermal energy, storing them separately in air storage units and thermal storage units.

During periods of high electricity demand, the stored high-pressure air is released and expanded through turbines to generate electricity.

Currently, large-scale engineering applications mainly focus on adiabatic compressed air energy storage systems with thermal storage.

According to statistics from the China Energy Storage Alliance (CNESA), as of the first quarter of 2026, China had 14 operational compressed air energy storage projects connected to the grid, with a cumulative installed capacity exceeding 1.5 GW.

The total installed capacity of projects under construction and in the planning stage has exceeded 54 GW.

Flow Batteries

Flow batteries are electrochemical batteries in which the active materials of both the positive and negative electrodes are liquid.

Depending on the types of active electrode materials, flow batteries can be categorized into:

Vanadium redox flow batteries (VRFBs);
Zinc-bromine flow batteries;
Iron-chromium flow batteries;
and other technology pathways.

Overall, flow batteries offer advantages including:

high safety;
no risk of explosion or fire;
long service life;
deep charge and discharge capability;
and environmental friendliness.

By the end of 2025, China’s 10 kW-scale vanadium redox flow battery demonstration projects had already entered operation.

Thermal Energy Storage

Thermal energy storage refers to storing energy from sources such as:

solar thermal energy;
geothermal energy;
industrial waste heat;
low-grade waste heat;

and releasing it when needed, thereby addressing mismatches between thermal energy supply and demand caused by differences in time, location, or energy intensity.

Based on storage principles, thermal energy storage technologies can be categorized into three types:

sensible heat storage;
latent heat storage;
thermochemical energy storage.

Currently, relatively mature thermal storage materials include:

hot water;
molten salt;
refractory bricks;
and other thermal storage media.

Hydrogen Energy Storage

Hydrogen energy storage is a form of chemical energy storage that enables:

large-scale energy storage;
long-duration storage;
and cross-regional energy storage.

It mainly consists of three key stages:

hydrogen production;
hydrogen storage and transportation;
hydrogen utilization.

Water electrolysis for hydrogen production is expected to become the dominant future technology pathway.

Hydrogen storage and transportation technologies include:

gaseous hydrogen storage;
liquid hydrogen storage;
solid-state hydrogen storage;
ammonia (alcohol)-based hydrogen storage;
underground hydrogen storage;
and other approaches.

In the power sector, hydrogen energy can generate electricity mainly through:

hydrogen gas turbines;
hydrogen internal combustion engines;
hydrogen fuel cells.

Different LDES Technologies Demonstrate Distinct Competitive Advantages

Different long-duration energy storage technology pathways demonstrate diverse technical characteristics and competitive advantages.

In terms of efficiency, pumped hydro storage and gravity energy storage achieve relatively high efficiency, while molten salt thermal storage and hydrogen energy storage have comparatively lower efficiency.

Regarding service life, physical energy storage technologies such as pumped hydro storage, compressed air energy storage, and gravity energy storage generally offer longer lifetimes.

In terms of safety, most LDES technologies demonstrate high safety levels, except hydrogen energy storage, which requires additional safety considerations.

Regarding environmental adaptability, pumped hydro storage and compressed air energy storage have relatively limited adaptability to certain environmental conditions.

In terms of response speed, flow batteries demonstrate significant advantages.

Lifecycle Cost of Energy Storage Determines Economic Competitiveness

The levelized cost of electricity (LCOE) over the full lifecycle is a key indicator for evaluating the economic performance of energy storage technologies.

According to estimates from the China Energy Storage Alliance (CNESA), when the storage duration reaches 8 hours, salt cavern compressed air energy storage and pumped hydro storage currently demonstrate relatively lower lifecycle electricity costs.

With continuous technological advancement and large-scale deployment, the lifecycle costs of emerging long-duration energy storage technologies are expected to continue declining.

According to projections, by 2035, mainstream LDES technologies including:

compressed air energy storage;
pumped hydro storage;
flow batteries;
molten salt thermal storage;

could achieve lifecycle electricity costs of approximately:

RMB 0.3–0.5/kWh

under conditions of 250 annual utilization cycles.

If calculated based on each technology’s inherent lifecycle cycle life, the lifecycle cost of energy storage could decline even further.

Revenue Channels Established, Value of Long-Duration Storage Yet to Be Fully Released

Currently, the development of market mechanisms for long-duration energy storage is accelerating its transition from policy-driven growth toward market-driven development.

The three-part revenue structure of:

“Energy Market + Capacity Market + Ancillary Services Market”

is gradually moving from the stage of framework establishment toward detailed implementation.

Energy Market: The Most Fundamental Revenue Source

The energy market is currently the most fundamental and primary revenue source for long-duration energy storage.

The core business logic is:

“Charge during low-price periods and discharge during high-price periods.”

Compared with 2-hour energy storage systems, the key advantage of LDES lies in its ability to provide:

cross-period energy shifting;
large-scale electricity time-shifting capability;
and flexible short-term operation.

Some technology pathways can also achieve multiple daily cycles, allowing them to capture more price arbitrage opportunities.

In provinces where electricity spot markets are relatively mature, peak-valley price differences have become a major revenue source for energy storage projects.

Taking compressed air energy storage as an example, the first phase of the Jintan Salt Cavern Compressed Air Energy Storage National Demonstration Project in Jiangsu, which began operation in 2024, has an installed capacity of:

60 MW / 300 MWh

The project can achieve:

one charge and two discharge cycles per day;
or multiple charge-discharge operations within a day.
Capacity Market: Providing Long-Term Reliability Value

Unlike the “price arbitrage” mechanism of the energy market, the core logic of the capacity market is the “value of availability” — meaning that energy storage systems commit to remaining available whenever the power grid requires support.
This mechanism is particularly important for long-duration energy storage because:

it requires higher upfront investment costs;
it has a longer payback period;
and it requires stable baseline revenues to improve project bankability.
Currently, the development of capacity markets in China demonstrates a dual-track approach, which is gradually removing market access barriers for long-duration energy storage.
On one hand, the coal-fired power capacity pricing mechanism began nationwide implementation in 2024, providing a stable revenue foundation for the transformation of thermal power generation.
On the other hand, the Notice on Improving the Capacity Electricity Pricing Mechanism for the Generation Side, released in January this year, established for the first time at the national policy level a capacity electricity pricing mechanism for independent new-type energy storage systems on the grid side.
Based on the principle of “equal pay for equal performance,” independent energy storage has officially been incorporated into the generation-side capacity pricing mechanism.
The capacity payment mechanism for independent energy storage has therefore evolved from regional exploration toward a nationwide unified framework.

Ancillary Services Market: Unlocking Additional Value

If the energy market addresses the question of “whether energy storage can generate revenue,” the ancillary services market determines “whether energy storage can generate additional value.”
Currently, power ancillary service markets mainly include three categories:

frequency regulation;
peak shaving;
backup reserve.
In regions where electricity spot markets operate on a regular basis, peak-shaving ancillary services have gradually been replaced by spot energy markets, with their original functions being absorbed by electricity trading mechanisms.
Meanwhile, some provinces have begun pilot programs for new ancillary services, including:
ramping support;
inertia support;
and other grid flexibility services.
Long-duration energy storage can provide:
long-cycle energy shifting;
backup reserve capability;
and some technology pathways can also provide physical inertia, effectively supporting grid stability requirements.
However, although the three-part revenue structure appears relatively complete, the current market mechanism still mainly focuses on the question of “whether energy storage exists”, without further distinguishing “how long energy storage can provide service.”
The differentiated advantages of LDES — including:
cross-time energy shifting;
large capacity;
high reliability;
have not yet been fully translated into market revenues.
This remains the most significant challenge in current market mechanism development and represents a key area requiring further breakthroughs.
Technology and Market Mechanisms Advancing Together to Support Demonstration Deployment
At the recently held Energy Storage International Conference and Expo (ESIE2026), Ma Yuan, Assistant Researcher at the Department of Earth System Science of Tsinghua University, stated that by 2030, energy storage capacity should account for 15%–20% of total renewable energy installed capacity, reaching a key milestone of approximately 400 GW.
Among this capacity, long-duration energy storage with durations exceeding 8 hours should account for at least 20% in order to effectively reduce renewable energy curtailment and ensure power system security.
According to forecasts from the China Energy Storage Alliance (CNESA), during the 15th Five-Year Plan period, demand for long-duration energy storage will gradually become more prominent.
New LDES demand during this period will mainly focus on storage durations of:
4–10 hours
Under a conservative scenario, the market scale is expected to reach:
180 GW
while under an optimistic scenario, it could reach:
250 GW
Pumped hydro storage will remain the dominant technology, complemented by emerging LDES technologies such as:
compressed air energy storage;
electrochemical energy storage.
However, this scale still falls short of the requirements of power grid companies.
In some northwestern provinces with high renewable energy penetration, demand for 24-hour-plus long-duration energy storage is expected to emerge first.
By 2035, the scale of long-duration energy storage is expected to reach:
300 GW under a conservative scenario;
400 GW under an optimistic scenario.
Storage durations will mainly range from:
4–24 hours
while the deployment scale of emerging LDES technologies will continue to increase.
Accelerating the Transition from Technology Demonstration to Large-Scale Deployment
To continuously promote the transition of long-duration energy storage from technology demonstration to large-scale commercial application, more projects need to be implemented to transform technological maturity into commercial viability.
1. Coordinated Demonstration of Different Technology Pathways
Currently, emerging LDES projects face challenges including:
technologies that are not yet fully mature;
incomplete industrial supply chains;
relatively high investment costs.
As a result, commercial applications remain dominated by short-duration lithium-ion battery energy storage.
Going forward, demonstration and deployment of LDES technologies should be promoted in an orderly manner based on different stages of technological development.
This approach will accelerate the implementation of emerging technologies while driving industrial technology upgrades and improving market competitiveness.
2. Promote Scenario-Specific Demonstration Projects Based on Local Conditions
Under the new power system framework, different application scenarios have different requirements for long-duration energy storage.
For example:
developed cities in eastern China have relatively higher requirements for energy density;
northwestern “desert, Gobi, and barren land” regions;
eastern coastal areas;
and cold regions in northeastern China;
all have different requirements regarding:
operating temperature;
humidity resistance;
sand and dust protection;
and environmental adaptability.
Therefore, demonstration projects should be combined with different application environments to deepen research into key technologies including:
energy storage equipment;
system integration;
safety protection;
and operational reliability.
3. Strengthen Long-Term Monitoring and Evaluation of Demonstration Projects
Currently, management and evaluation mechanisms for demonstration projects are not yet sufficiently comprehensive.
In the future, long-term tracking, monitoring, and periodic evaluation should be carried out for demonstration projects.
This will provide scientific data support for:
the practical application of new technologies;
new products;
and innovative solutions.
It will also provide evidence-based support for national industrial policies and technical standards.
4. Encourage Demonstration Projects to Explore Innovative Policies and Business Models
While demonstrating LDES technologies, pilot projects should also serve as platforms for exploring innovative commercial models.
At the same time, improving policy mechanisms and market support systems will be a critical foundation for large-scale LDES development.
Establishing Cost Recovery Mechanisms for Long-Duration Energy Storage
Compared with short-duration energy storage, LDES demonstrates greater value through:
capacity contribution;
long-term backup capability;
and system reliability support.
Therefore, it is necessary to gradually establish market-based capacity cost recovery mechanisms.
Through market competition and pricing mechanisms, investment entities can be encouraged to make reasonable investments, ensuring long-term adequacy of power system capacity.
Improving Cost Allocation Mechanisms for Long-Duration Energy Storage
Long-duration energy storage can directly or indirectly accelerate the replacement of traditional fossil fuel power generation with renewable energy, significantly reducing overall societal carbon emissions.
In the future, policy and market frameworks for:
green electricity;
green electricity certificates;
carbon trading;
should be further developed.
These mechanisms can better reflect the value of LDES in:
energy transition;
carbon reduction;
and renewable energy integration.
By expanding revenue sources and improving cost allocation mechanisms, the economic foundation for long-duration energy storage can be further strengthened.

Conclusion

Long-duration energy storage is becoming an increasingly important pillar of future power systems as renewable energy deployment accelerates.
With continuous technological innovation, improved market mechanisms, and increasing project deployment, LDES is expected to move from early-stage demonstration toward large-scale commercialization.
The future development of long-duration energy storage will depend not only on breakthroughs in individual technologies, but also on the coordinated evolution of:
technology pathways;
market structures;
business models;
and policy frameworks.
Together, these factors will unlock the full value of LDES in supporting renewable energy integration, enhancing grid flexibility, and enabling the global energy transition.

Guest User 6/30/26 Guest User 6/30/26

The Fourth China-Europe Energy Technology Innovation Cooperation Forum：Energy Storage Sub-Forum Successfully Held in Chengdu

China's installed capacity of new-type energy storage has reached 157 GW, ranking first globally for four consecutive years. Germany has received grid connection applications exceeding 720 GW for large-scale storage, signaling an explosion in the European energy storage market.

On June 25, the Fourth China-Europe Energy Technology Innovation Cooperation Forum: Energy Storage Sub-forum was held in Chengdu, Sichuan, unfolding a panoramic view of China-Europe energy storage collaborative innovation. The sub-forum was co-hosted by the China-Europe Energy Innovation Cooperation Office and the China Energy Storage Alliance (CNESA).

Representatives from government agencies, industry associations, research institutions, and leading enterprises from China, the UK, France, Germany, Denmark, the Netherlands, Switzerland, and other countries gathered at the event, forming a high-end multi-national lineup spanning government, industry, academia, and research. The session was moderated by Li Zhen, Deputy Secretary-General of CNESA.

Concurrent events included Country Days for the UK, Iceland, and Finland, as well as thematic sub-forums on hydrogen energy, smart energy, wind power, and biomass energy, establishing a premier China-Europe exchange platform covering diverse new energy sectors.

【Key Highlights】

① China Leads Global Storage: As of May 2026, China's cumulative installed capacity of new-type energy storage reached 157 GW, a surge of over 45 times compared to the end of the 13th Five-Year Plan period, maintaining the global top spot for new additions for four straight years.

② European Large-Scale Storage Poised for Takeoff: Germany has over 720 GW of grid connection applications for large-scale storage, with authorities initially approving 78 GW. The UK plans to deploy no less than 23 GW of grid-scale battery storage and over 4 GW of long-duration storage by 2030.

③ Chinese Enterprises Enter New Phase of Globalization: CALB has broken ground on a 100 GWh industrial base in Portugal, marking a shift from product export to full value-chain localization.

④ New Consensus on China-Europe Cooperation: Lithium-ion batteries and hydrogen energy are complementary; AI is deeply empowering storage; and standards mutual recognition has become an industry imperative—China-Europe cooperation is evolving from "complementary strengths" to "symbiotic prosperity."

Policy Direction:

New-Type Energy Storage: A Critical Pillar of the New Energy System

Zhang Jianwei, First-Level Researcher, Department of Science, Technology and Equipment, National Energy Administration (NEA), stated in his opening remarks that the Chinese government attaches great importance to energy storage development. The NEA coordinates an "effective market" with a "proactive government," promoting high-quality development in the sector through four key measures:

First, strengthening planning guidance.Jointly issuing multiple supportive policies with relevant departments to clarify development directions and tasks.

Second, persisting in innovation-driven development. Organizing pilot projects to explore over ten technological routes and continuously improving the standards system, having released over 50 national standards.

Third, refining market mechanisms.Clarifying market entity roles, improving pricing mechanisms, electricity spot markets, capacity compensation, and other market-based mechanisms to expand revenue streams.

Fourth, deepening international cooperation.Actively supporting Chinese enterprises going global. He noted that the 15th Five-Year Plan period presents both opportunities and challenges.Considering demands such as renewable energy integration and power system security, as well as the evolving role of coal power, the NEA will continue to target high-quality development to comprehensively support carbon peaking goals and contribute Chinese strength to the global energy transition.

Wang Shunchao, Vice President, International Energy Consulting Department, China Electric Power Planning & Engineering Institute (EPPEI) ,emphasized in his address that energy storage is transforming from a traditional "shifting role" in power regulation to a critical technology for new power systems, undertaking diversified system service functions.

Both China and Europe prioritize energy storage development. China's 15th Five-Year Plan has positioned new-type energy storage as a crucial support for the new energy system. Advanced technologies like grid-forming storage have been validated in diverse domestic scenarios and are gradually entering commercial application. Europe, meanwhile, has accumulated rich experience in market mechanism design and business model innovation while actively promoting cutting-edge R&D. The two sides boast complementary advantages, providing a global (demonstration) for energy transition. Against this backdrop, the sub-forum is timely and will strongly propel deep bilateral cooperation.

The Chinese Market:

157 GW! New-Type Storage Installations Rank First Globally for Four Years

Chen Haisheng, Chairman of CNESA and Director of the Institute of Engineering Thermophysics, Chinese Academy of Sciences (CAS),provided a systematic overview of China's latest progress and outlook in energy storage technology and industry. He noted that China's storage sector is on par with international levels, transitioning from policy-driven to market-driven growth, moving from scale expansion to comprehensive commercialization, with storage emerging as a core entity in the new power system. Currently, multiple technology routes are breaking through in parallel, with long-duration storage, grid-forming storage, solid-state batteries, and AI-integrated storage becoming R&D hotspots.China has led the world in new installations for four consecutive years. As of May 2026, cumulative installed capacity of new-type storage reached 157 GW, a surge of over 45 times since the end of the 13th Five-Year Plan. The compound annual growth rate for the next five years is projected at 20.7–25.5%, with total installed capacity expected to reach 371.2–450.7 GW by 2030.

The European Market:

Large-Scale Storage Explosion & Policy Breakthroughs for Long-Duration Storage

Vincent Fremery, Energy Advisor, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ),presented a keynote report titled "German Energy Storage Policy and Market." Mr. Fremery highlighted Germany's significant progress in energy transition, with renewables accounting for over 60% of power generation. Germany aims for net-zero by 2045 and 80% renewable share by 2030, planning to phase out coal by 2038. Regarding the storage market, Germany exhibits a pattern of "household storage dominance, steady growth in C&I storage, and accelerated explosion in utility-scale storage": Household storage remains dominant but growth is slowing; the C&I storage market is steadily expanding; large-scale storage (including pumped hydro) is rapidly rising, with market revenues expected to increase 2–3 times between 2025–2026. Notably, grid operators report over 720 GW of grid connection applications for large-scale storage, with 78 GW initially approved by grid companies, indicating vast development space in the next five years.

Vincent specifically mentioned that the entry of Chinese manufacturers has significantly reduced storage costs, facilitating the implementation of large-scale German projects. He noted that the new German government has yet to issue specific storage policies, leaving broad potential for Sino-German cooperation.

Bea Swords, Senior Policy Advisor, Industrial Policy & Supply Chain Strategy, Clean Energy Investment Directorate, Department for Energy Security and Net Zero (DESNZ), UK,shared insights on UK storage policies, industry status, and medium-to-long-term plans. She stated that the UK targets power sector decarbonization by 2030 and net-zero emissions by 2050, where flexible power systems are key, with storage playing a central supporting role. Currently, the UK operates 7.3 GW of grid-scale battery storage and 2.8 GW of pumped hydro. It plans to deploy no less than 23 GW of grid-scale battery storage and over 4 GW of long-duration storage by 2030.The government is removing barriers through measures like eliminating "double charging" of grid fees, lowering market entry thresholds, and reducing taxes on residential storage. Crucially, it has introduced a revenue floor and cap investment support mechanism for long-duration storage exceeding 8 hours to address high upfront costs and long payback periods.

Corporate Practices:

From Product Export to Full Value-Chain Localization

Pei Yang , VP of Sales ESS, CALB Group Co., Ltd.,presented a report titled "The Energy Revolution in Zero-Carbon Cities." He emphasized that developing storage is essential for zero-carbon urban transitions in China and Europe, with the industry shifting from scale competition to market deepening and technological empowerment. CALB is undergoing a strategic transformation, upgrading from a single equipment provider to a zero-carbon solution provider, covering three major sectors: storage equipment supply, power station investment & O&M, and zero-carbon business development & operation. Leveraging deep AI-energy integration, the company proposes a "Zero-Carbon Smart City" vision, centered on a zero-carbon platform linking power trading, carbon asset management, and microgrid dispatch, aiming to convert the levelized cost of storage advantage directly into competitive Token pricing for AI data centers. On core products, its long-cycle cells achieve "zero degradation in three years, 15,000+ cycles," and storage system products have been upgraded to 6.9 MWh. Regarding European footprint, the Portugal industrial base involves an investment of approximately €2 billion (~CNY ¥15.2 billion), with Phase I annual capacity reaching 15 GWh. Multiple landmark projects have been deployed in the UK, Hungary, and other markets. Yang Pei expressed CALB's willingness to deepen all-round collaboration with European partners to build an open, win-win China-Europe new energy ecosystem.

Dongping Li, General Manager, Energy Storage Business Unit, ZHEJIANG INPOWER ENERGY Co., Ltd.,analyzed the current status, regional landscape, and market opportunities in Europe. He pointed out that the European storage market is in a phase of high-speed growth, with a projected CAGR exceeding 25% from 2026 to 2030. In 2025, Europe added 27.1 GWh of new storage capacity, bringing cumulative installations to 77.3 GWh. Notably, utility-scale storage accounted for over 50% of new additions for the first time, marking a dual-driven development pattern of centralized and distributed storage. Regionally, the UK, Germany, and Italy form the first tier: the UK boasts the largest and most mature market (>16 GWh); Germany is Europe's largest household storage market (penetration >86%); Italy sees rapid large-scale storage growth fueled by capacity and frequency regulation market incentives. Meanwhile, emerging regions like Eastern Europe, Spain, and the Netherlands are releasing sustained demand, showing outstanding growth potential. Inpower ESS offers full-power-range PCS products adaptable to diverse overseas scenarios and has successfully deployed multiple projects abroad.

Yueling Gu, Deputy General Manager, Professorate Senior Engineer, Energy Storage Technology Institute Co., Ltd. (affiliated with CEEC Times), shared insights on the development background, design philosophy, and China-Europe synergy prospects for storage supporting large-scale wind and solar bases. He noted that these bases are cornerstones of national energy security, with new-type storage being indispensable. Given their massive scale and diverse generation types, storage planning must follow an integrated development approach. Calculations indicate that a 10 GW-class base typically requires 1–2 GW of storage with a duration of 2–4 hours to optimize multiple objectives. Currently, lithium-ion batteries dominate base storage, but future diversification will create complementarity. Furthermore, he highlighted immense potential for China-Europe energy transition cooperation, suggesting joint R&D on frontier storage technologies and deeper industrial chain synergy to drive global energy transformation.

Roundtable Dialogue:

Accelerating the Pace of China-Europe Energy Storage Cooperation

In the roundtable discussion themed "China-Europe Collaborative Innovation and Win-Win Development in Energy Storage," Qu Haoyuan, Chief Analyst of Renewable Energy Research at CICC,engaged in deep dialogue with four experts. The panelists covered Sino-European technological complementarity, computing-power-electricity synergy trends, industrial investment strategies, and standards/certification mutual recognition.

Victor Gout
Deputy Representative for Alternative Energies, French Atomic Energy and Alternative EnergiesCommission (CEA) -China Office

Victor Gout, Deputy Representative for Alternative Energies, French Alternative Energies and Atomic Energy Commission (CEA) -China Office,argued that lithium-ion batteries and hydrogen energy are not adversarial but complementary, each suited to different scenarios and economic models. Li-ion batteries offer fast charging, high efficiency, and millisecond-level response, ideal for short-term frequency regulation and 2–4 hour power shifting. Thanks to China's large-scale industrialization, Li-ion costs have plummeted, with durations potentially extending to 8 hours or more. Hydrogen, conversely, suits regions unsuitable for pumped hydro and long-duration storage scenarios, while also serving hard-to-abate sectors like industrial decarbonization and fuel replacement, though hindered by lower conversion efficiency and insufficient infrastructure. He stressed that basic research is the most suitable entry point for Sino-French collaboration,with vast potential in solid oxide fuel cells, battery chemistry materials, grid modeling/testing, and standards systems. Both technology paths require continuous breakthroughs to support grids with high renewable penetration.

Zilong Yang , Director of Digital Energy Technologies, Innovation Center, Asia Pacific & Greater China Region, Siemens Energy, focused on computing-power-electricity synergy. He noted that national data center power consumption reached 170 billion kWh in 2025 and is projected to quadruple by 2030, coinciding with soaring renewable capacity. Storage becomes the critical link balancing fluctuations on both sides. Regarding implementation pathways, he outlined three green power consumption models: green power trading, direct green power connections, and green certificate trading. He emphasized that the internal shift in data centers from AC to 800V DC power supply itself creates new demands for storage.On "computing driving electricity," he highlighted how AI can deeply empower storage system planning/simulation, operational dispatch, and power trading decisions, enabling optimal scheduling amid real-time electricity prices and load fluctuations. Consequently, storage becomes a vital pillar for the safe and stable operation of new power systems.

Pei Yang , VP of Sales ESS, CALB Group Co., Ltd.,elaborated on practical pathways and win-win scenarios based on CALB's overseas footprint. Currently, the company's 100 GWh industrial base in Portugal is under construction, and its battery pack facility in Thailand is operational.To navigate the EU Carbon Border Adjustment Mechanism (CBAM) and varying national standards, CALB is making synchronized efforts in industry, standards, and technology: On standards, it proactively engages in aligning with European regulations from early project planning stages to meet diverse certification requirements for grid characteristics and functional specifications. On technology, it operates R&D centers in Europe to enhance localized technical synergy. Pei Yang asserted that global deployment is an inevitable trend, and vast cooperation space exists between China and Europe across industrial investment, standards mutual recognition, and joint R&D.Enterprises should proactively integrate into local systems to foster deep industrial chain integration through co-development.

Among Chen ,General Manager -Battery & Container ESS & Charge Station, DEKRA China, first systematically outlined differences between Chinese and European storage standards/certification systems regarding regulatory frameworks, standard granularity, and management mechanisms.

Addressing Chinese enterprises going global, he proposed four adaptation pathways: Proactively aligning product designs with EU standards during the design phase; engaging qualified testing laboratories for oversight; preparing bilingual technical documentation; and establishing R&D capabilities with China-Europe linkages. Regarding AIDC (AI Data Center) + Storage, Chen noted that the explosive growth of data centers has spawned new integrated storage demands encompassing "backup power + peak shaving + grid-forming capabilities." China holds distinct manufacturing and technological advantages in high-rate LFP batteries, liquid cooling integration, and grid-forming PCS. Europe excels in data center O&M management, energy efficiency optimization, AI-driven peak load forecasting, and grid-side interconnection. The two sides are highly complementary, enabling a commercial model of "Chinese smart-manufactured products + European management/O&M systems."

Energy Storage

The Most Solid "Technological Foundation" for China-Europe Green Cooperation

As pivotal participants and drivers of the global energy transition, China and Europe exhibit strong complementarity and vast cooperation potential in energy storage. Europe has accumulated advanced experience in power market mechanisms, standards systems, and system O&M management. China possesses a complete industrial system, economies of scale in manufacturing, and rich, diverse application scenarios.

Amid accelerating global energy transformation and technological iteration, deepening China-Europe technical exchanges and industrial synergy in energy storage is both an intrinsic need to advance respective energy transitions and a crucial measure to jointly address global energy security challenges and promote sustainable energy development.

Outcomes from this sub-forum demonstrate that dialogue between China and Europe on storage policy, technology, standards, and markets has entered deep waters. The two sides are transitioning from simple trade relations to a new stage of comprehensive cooperation featuring industrial chain synergy, standards system co-construction, and joint basic research.

It is anticipated that this forum serves as a new starting point for China-Europe energy storage collaboration, continuously injecting robust momentum into the global green, low-carbon energy transition.

CNESA Admin 1/20/26 CNESA Admin 1/20/26

Annual Power Cost Savings Exceed RMB 60 Million ! Great Power’s 107MW/428MWh Hydropower-based Aluminium User-side Energy Storage Project is Commissioned

On January 16th, a 107.12MW/428.48MWh green hydropower-based aluminium user-side energy storage project jointly developed by Great Power and Henan Zhongfu Industry was officially commissioned in Guangyuan, Sichuan Province.

Designed and delivered under an EPC contract by Sichuan Zefeng Electric Power Design, the project achieved full-capacity grid connection by the end of 2025 after just five months of construction. It stands as a landmark project for green energy transformation in northern Sichuan and a benchmark case for energy-extensive industry implementing “source-grid-load-storage” integration.

Electricity stored at the facility is directly supplied to the electrolytic aluminium production system, primarily leveraging peak-valley electricity price arbitrage to reduce operating cost. According to estimates, the project is expected to lower electricity costs for electrolytic aluminum by approximately RMB 140 per tonne, delivering annual power cost savings of over RMB 60 million. Meanwhile, it will cut 52,000 tons carbon commission per year, providing a commercially viable solution to address high electricity costs and decarbonization pressures faced by energy-extensive industries.

Building on this project, the two partners will be committed to advance the development of a “zero-carbon aluminum industrial park” in Guangyuan. It plans to introduce advanced intelligent technology to build a virtual power plant (VPP) capable of engaging in power trading and grid dispatch. During the 15th Five-Year Plan period, the project developers will further expand the deployment of solar PV, wind power, green power direct supply and intelligent microgrids, ultimately establishing a safe and controllable regional intelligent micro-grid dominated by new energy, providing a practical model for developing a national new-type power system.

_______________________________________________

The Great Power has confirmed its participation in the 14th Energy Storage International Conference and Expo, register now to attend Asia’s Largest Energy Storage Trade Show for free:

What: The 14th Energy Storage International Conference & Expo

When: Conferences: March 31 - April 2, 2026

Exhibitions: April 1-3, 2026

Where: CIECC Beijing, China

Address: No. 55 Yudong road, Shunyi District, Beijing China

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4.8 GWh Installed: Beijing KeRui Supports the Grid Connection of Two Major Grid-Side Energy Storage Projects in Inner Mongolia, Chi

In December 2025, two large-scale grid-side independent energy storage projects supported by Beijing KeRui were successfully connected to the grid in Inner Mongolia and put into operation: the 500 MW / 2,000 MWh Gushanliang project in Ordos and the 400 MW / 2,400 MWh Bu’erhantu project in Baotou.

Leveraging outstanding engineering execution capabilities, Beijing KeRui’s service team completed the entire process from installation to power delivery in just 50 days—an industry miracle that provided strong assurance for the high-quality and rapid commissioning of both projects. With a combined capacity of 4.8 GWh, the two projects set a new benchmark for the development of China’s independent energy storage sector in terms of large scale, high quality, and accelerated delivery. They inject strong momentum into regional energy structure transformation and provide critical support for building a stable and reliable new-type power system.

In these two flagship projects, Beijing KeRui’s integrated energy storage power conversion and step-up units served as the primary AC-side equipment and played a central role in successful commissioning. Several innovative technologies proved critical to project delivery:

Energy-Efficiency-Oriented Intelligent Thermal Management
The system adopts an innovative multi-tier thermal management strategy centered on “on-demand activation and load matching.” By dynamically aligning transformer cooling requirements with fan operating conditions, the design achieves optimal coordination between auxiliary power consumption and heat dissipation efficiency, significantly reducing unnecessary energy use. In addition, an intelligent heat-exchange buffering design adjusts fresh-air temperature seasonally—mitigating cold shock in winter to protect equipment and pre-cooling intake air in summer to enhance heat dissipation—thereby ensuring long-term stable operation while further refining overall energy efficiency.

Reinforced Structural Design with Integrated Drainage
Through optimization of the converter platform layout, the system enhances overall structural strength while naturally forming efficient drainage channels. This eliminates the need for additional drainage components, achieving dual functionality within a single structure and balancing structural safety with environmental adaptability. The design reflects a philosophy of simplicity, reliability, and efficiency.

Verified Transport Reliability
The equipment underwent rigorous transportation testing, including over 3,000 kilometers of highway transport and 450 kilometers of reinforced standard-condition road testing. These trials fully validated the system’s ability to withstand complex overland transportation challenges, ensuring structural integrity and stable performance throughout delivery and meeting the stringent requirements of real-world engineering logistics.

One notable highlight of the projects is the application of HyperStrong’s flagship large-capacity liquid-cooled energy storage system, representing the latest advancements in electrochemical energy storage technology. HyperStrong’s independently developed second-generation power conversion system (PCS) features advanced technology with fully independent and controllable core technologies. It can accurately respond to grid dispatch requirements and, through customized design, adapts effectively to complex operating conditions to ensure safe and stable year-round operation. This PCS has been successfully integrated into Beijing KeRui’s integrated unit solution.

Another key highlight is the adoption of CATL’s advanced 587 Ah energy storage cells, which achieve an energy density of 434 Wh/L, a cycle efficiency of up to 96.5%, and further optimized cycle life and degradation performance. This marks the first time Beijing KeRui’s integrated power conversion and step-up system has been deployed in combination with this cell model, demonstrating the company’s rapid response capability in adopting cutting-edge technologies and integrating high-performance components. Beijing KeRui’s integrated design deeply combines core modules—including the power conversion system, step-up transformer, power distribution switchgear, intelligent control, fire protection and security, and thermal management—into a single solution. Through optimized structural topology and layered spatial design, the capacity of a single box-type dry transformer can be increased to over 8,250 kVA, unlocking substantial energy output within limited space. This approach reduces land-use costs while enabling flexible deployment across diverse application scenarios.

The commissioning of the two energy storage power stations will significantly enhance the Inner Mongolia power grid’s ability to accommodate variable renewable energy sources such as wind and photovoltaic power. The projects will effectively smooth peak–valley load differences, improve grid flexibility, and strengthen overall system security and stability. Looking ahead, leveraging the comprehensive advantages of its integrated energy storage power conversion and step-up units—spanning energy efficiency, structural optimization, reliability, and adaptability—Beijing KeRui will continue to provide high-performance, high-reliability energy storage system solutions. The company aims to help customers achieve lower operating costs, higher full life-cycle discharge returns, and improved investment performance.

As an active participant and key driver in the development of new-type power systems, Beijing KeRui remains committed to advancing clean and low-carbon energy transition through technological innovation and superior service, contributing to a safer, more efficient, and greener modern energy system.

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China Mingyang Longyuan’s First 100MW/400MWh High-Voltage Cascade Independent Energy Storage Project Achieves Full-Capacity Grid Connection

Mingyang Longyuan has built a major milestone in China’s energy storage sector with the successful full-capacity grid connection of its first 100MW/400MWh high-voltage cascade independent energy storage project in Ordos, Inner Mongolia. The project’s commissioning highlights the company’s technological strength in large-scale, high-efficiency, and highly reliable energy storage solutions, while reinforcing the critical role of advanced storage systems in supporting grid stability and renewable energy integration.

On December 28, Mingyang Longyuan’s first 100MW/400MWh high-voltage cascade independent energy storage project, the Yashitu Power Station, successfully achieved full-capacity grid connection at the Gushanliang site in Ordos, China. The project also passed the “three charge and three discharge” test of the West Inner Mongolia Power Grid and has officially entered commercial operation.

As an optimal solution for large-scale energy storage power stations, Mingyang Longyuan’s high-voltage cascade energy storage system demonstrates significant advantages, including large unit capacity, high energy conversion efficiency, enhanced safety performance, lower overall system cost, simplified coordinated control, and extended battery lifespan. The system also provides strong grid-support capabilities, enabling reliable performance under complex conditions such as extreme temperature variations and high humidity, while effectively supporting peak shaving, frequency regulation, and large-scale integration of renewable energy.

The project has achieved a long-duration cycle efficiency exceeding 90 percent, marking a substantial breakthrough in key performance indicators. This achievement reflects the sustained efforts of Mingyang Longyuan’s R&D and service teams. Despite harsh construction conditions characterized by strong winds, heavy snowfall, and extremely low temperatures in Ordos, the team overcame multiple technical challenges through continuous on-site work, ensuring the project’s timely commissioning. The experience gained has further strengthened the company’s capabilities in operating energy storage systems under extreme environmental conditions, laying a solid foundation for long-term stable and reliable performance.

The successful commissioning of the Gushanliang energy storage power station in Ordos underscores Mingyang Longyuan’s technical strength and product reliability, representing an important milestone in the company’s continued expansion in the energy storage sector. Looking ahead, Mingyang Longyuan will remain driven by technological innovation, advancing the upgrading of the energy storage industry and contributing to the development of a clean, low-carbon, safe, and efficient energy system.

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12.8 GWh Energy Storage Cluster Connected to the Grid AI-Powered Energy Storage Reshapes the Future of New Power Systems

The world’s largest single-site electrochemical energy storage power station—the Envision Jingyi Chagan Hada Energy Storage Power Station—was successfully connected to the grid, completing a 12.8 GWh AI-powered energy storage cluster in Inner Mongolia. The project sets new global benchmarks for scale, grid-connection speed, and system reliability, while demonstrating advanced grid-forming capabilities that enable rapid commissioning, deep grid interaction, and large-scale renewable integration.

Recently, the world’s largest single-site electrochemical energy storage power station—the Envision Jingyi Chagan Hada Energy Storage Power Station—was successfully connected to the grid. With a total capacity of 4 GWh, the project is fully equipped with Envision’s AI-powered energy storage system. This milestone marks the completion and grid connection of Envision’s 12.8 GWh energy storage cluster deployed across Bayannur, Ordos, Hohhot, Ulanqab, Xilingol League, and Alxa League. To date, Envision-led energy storage projects in Inner Mongolia exceed 14 GWh in total capacity.

The project passed grid verification at rated power through “three charge and three discharge” and a 72-hour continuous trial operation at one time, becoming the largest energy storage project in China to complete such testing. This achievement not only sets new global records for energy storage cluster scale and grid-connection speed, but also demonstrates Envision’s capabilities in ultra-large-scale system integration, extreme-environment adaptability, deep grid interaction, and large-scale project delivery.

Notably, the project’s grid connection coincided with the release of China’s Guidelines on Promoting High-Quality Power Grid Development by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA), highlighting strong alignment between national policy direction and industrial practice. Together, they signal that AI-centered energy storage technologies are reshaping the future of new power system from technological, market, and application perspectives.

Technology: From “Optional” to “Essential”

The Guidelines clearly state that power system regulation capabilities should be upgraded toward greater diversity and massive-scale coordination. They call for accelerated development of regulation capabilities for new grid-connected entities, including distributed renewable energy and new-type energy storage, to enable the coordinated and optimized dispatch of diverse and large-scale resources. The Guidelines also emphasize strengthening R&D in critical power grid technologies, targeting application scenarios such as deserts, Gobi and barren regions, integrated wind–solar–hydro systems, high-altitude areas, and deep and far-offshore environments. They propose piloting long-distance transmission from large-scale 100% renewable energy bases, and accelerating the engineering validation and deployment of grid-forming technologies.

It is said that Envision’s AI energy storage system deployed in Inner Mongolia integrates advanced capabilities from “grid-following” to “grid-forming”, enabled by a full-time-scale simulation platform and a three-layer grid-forming architecture spanning equipment, system, and site levels. This allows GW-scale stations to connect to the grid immediately upon energization, significantly reducing commissioning time, mitigating oscillation risks, and enhancing system support strength. As a result, energy storage evolves from a “grid follower” to a “grid builder,” providing a solid technical foundation for power systems with high shares of renewable energy.

Market: From Grid Connection to Market Participation

The Guidelines emphasize deep integration between market mechanisms and dispatch systems, and encourage exploration of new pricing mechanisms. This creates clear and predictable revenue pathways for AI-powered energy storage through participation in electricity spot markets, provision of ancillary services such as frequency and peak regulation, and access to capacity compensation and price arbitrage.

The 12.8 GWh energy storage cluster will be fully integrated into the electricity spot market. Leveraging Envision’s AI system—where trading agents and grid-forming agents operate in coordination—the project enables a closed-loop lifecycle operation covering forecasting, dispatch, trading, and self-learning. This approach not only enhances the intelligence, efficiency, and execution of power trading decisions, but also provides a replicable and scalable model for the large-scale participation of new-type energy storage in electricity markets. At the same time, it significantly improves regional renewable energy consumption and strengthens the operational resilience of the power grid. In previous deployments, Envision’s AI energy storage system has ranked first in trading forecast accuracy at several sites in Inner Mongolia for consecutive months. Based on measured operational data, the project is expected to increase total lifecycle returns by more than 20%.

Applications: From Single Use to Broad Scenarios

The Guidelines elevate smart microgrids as a key component of new-type power systems, unlocking vast opportunities for AI energy storage in industrial parks, zero-carbon parks, and remote areas. In these scenarios, AI-powered energy storage functions as a local energy brain, optimizing the coordination of generation, grid, load, and storage to maximize renewable self-consumption, enhance supply reliability, and enable higher-level grid interaction.

As power systems become increasingly clean and market-oriented, simple equipment aggregation is no longer sufficient. In high-renewable scenarios, AI-driven energy storage that balances grid stability with revenue optimization has become indispensable. The successful grid connection of the Inner Mongolia cluster underscores Envision’s leadership in physical AI and AI-enabled renewable energy solutions.

Envision has established a full industrial chain in Inner Mongolia, from battery cells and system integration to project delivery and intelligent operation. Leveraging its integrated capabilities, the project drives industrial clustering, injects new momentum into the local economy, supports the development of a new-type power system, and underpins the region’s efforts to accelerate the construction of a nationally important energy and strategic resources base.

This milestone delivery marks a successful conclusion to Envision’s energy storage business expansion in 2025. Empowered by physical artificial intelligence, Envision has secured a series of major contracts both at home and abroad this year. Building on its established global footprint, the company has successfully expanded into ten strategic overseas markets, including Australia, Chile, Italy, and Poland. Looking ahead, Envision will continue to strengthen the foundational support for next-generation power systems through innovative products and world-class project execution, accelerating the global transition toward zero-carbon and driving a new era of shared prosperity powered by Chinese renewable energy technologies.

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Envision Energy Storage has confirmed its participation in the 14th Energy Storage International Conference and Expo (ESIE 2026). Register now to attend Asia's Largest Energy Storage Trade Show for free:

What: The 14th Energy Storage International Conference & Expo

When: Conferences: March 31 - April 2, 2026

Exhibitions: April 1-3, 2026

Where: CIECC Beijing, China

Address: No. 55 Yudong road, Shunyi District, Beijing China

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4GW/5.12GWh Malaysia Solar-Plus-Storage Hub Receives World Bank Funding

Source: PV Tech

The agreement was signed this week, in the presence of the Queen of Malaysia (pictured). Image: IFC

The World Bank will invest in a huge 4GW, 5.12GWh solar-plus-storage complex in Malaysia, which will form part of a pan-Southeast Asian power grid initiative.

The Southern Johor Renewable Energy Corridor (SJREC) will be a roughly 2,000sqKm area dedicated to solar PV and energy storage capacity. The US$6 billion project is backed by the World Bank’s private investment arm, the Iternational Finance Corporation (IFC), alongside the state investment firm of Johor, Permodalan Darul Ta’zim (PDT), and Ditrolic Energy, a Malaysian integrated energy company.

The project is part of a number of larger schemes, chiefly the ASEAN Power Grid Initiative, a plan to integrate power grids and energy supply across Southeast Asian nations. In this vein, the SJREC will be part of the Johor–Singapore Special Economic Zone (JS-SEZ) “masterplan”, able to transmit clean energy to Singapore, which sits on Johor’s southern border.

As a densely populated city state, Singapore relies heavily on energy imports and has made significant plans for cross-border renewables transmission, perhaps most notably the mammoth AA PowerLink project in Northern Australia, which aims to deploy almost 20GW of solar capacity when fully operational and supply power to Singapore via undersea cables.

The site is also part of the Johor Green Development Policy 2030, which the state government introduced to expand its green industries and renewable energy developments.

“As the state agency entrusted to formulate the Johor Green Development Policy 2030, PDT is proud to witness our strategic framework transition into tangible reality today,” said Dato’ Ramlee bin A Rahman, president and group chief executive of Permodalan Darul Ta’zim.

“The Southern Johor Renewable Energy Corridor was conceived as the cornerstone of this policy, specifically Strategy one, to unlock the immense solar potential of the Kota Tinggi and Mersing districts.”

Tham Chee Aun, CEO of Ditrolic Energy, said the SJREC hub would “Anchor Johor’s clean energy export potential and provide a foundation for industries seeking renewable, low-cost power in the region.”

In an announcement, the IFC said the project would supply renewable energy to “local and multinational corporations, including hyperscale data centre operators, manufacturers, and other businesses in Johor”.

Renewables development is a major driver for meeting data centre power demand, primarily because of the affordability of solar projects and solar energy and the stability offered by coupling the technology with energy storage. In its most recent report, the International Energy Agency (IEA) said the world would become “thirsty for energy” in the coming years and that data centres were an “Important driver” of growing power demand.

(By Will Norman)

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200MW/800MWh! China's Largest Semi-Solid-State Energy Storage Project Connected to the Grid

Source: CCTV News

According to a report by CCTV News on December 1, China Green Development Group announced that a 200MW/800MWh semi-solid-state battery energy storage project located in Wuhai, Inner Mongolia, has been successfully connected to the grid. The project not only sets a new record for the installed capacity of grid-connected semi-solid-state lithium battery energy storage in China, but also marks a crucial step for China's semi-solid-state energy storage technology from pilot demonstration to large-scale commercial operation.

As a major new energy hub in northwest China, Wuhai city in the Inner Mongolia Autonomous Region, has leveraged its abundant wind and solar resources to consistently advance integrated development of “source-grid-load-storage” in recent years. This newly grid-connected energy storage facility serves as a core infrastructure project for enhancing local renewable energy consumption. Covering an area of about 100 mu (about 6.67 hectares), the project is equipped with 160 energy storage battery containers and 40 converter and booster integrated units.

Semi-Solid-State Lithium Battery Energy Storage Project Successfully Connected to the Grid in Wuhai, Inner Mongolia

Qin Lei, Project Manager of Wuhai Energy Storage Project, Inner Mongolia Branch, China Green Development Group:

“This massive ‘power bank’ utilizes domestically-developed semi-solid-state lithium iron phosphate battery technology, which offers significant advantages in safety performance, energy density, and cycle life compared with conventional liquid lithium iron phosphate batteries.”

With the rapid upgrade of the new energy industry, energy storage - essential for grid peak regulation, frequency modulation, and improving renewable energy utilization - is entering a phase of large-scale expansion. Semi-solid-state lithium battery technology represents a key direction for the future development of power and storage batteries. Using a hybrid solid-liquid electrolyte, semi-solid-state batteries retain the high ionic conductivity of liquid systems while achieving a cycle life exceeding 12,000 cycles, which greatly reduces lifecycle operational costs. In addition, they can effectively suppress lithium dendrite growth, further enhancing safety.

Liu Xiaofei, Assistant General Manager, Inner Mongolia Branch, China Green Development Group:

“Once fully operational, the project will feature a peak-shaving and frequency-regulating capability of 200MW/800MWh, providing 189,000 MWh of clean electricity to the grid annually. It enables flexible scheduling - storing energy during the day and supporting peak loads at night - significantly enhancing power system stability. It will also ensure that local green electricity can be fully delivered, stably transmitted, and efficiently utilized, solving key bottlenecks in regional renewable energy consumption.”

In recent years, semi-solid-state lithium batteries - offering both high safety and strong economic performance - have become a core direction of technological evolution in the energy storage sector. Previously, China's largest grid-connected semi-solid-state storage project had a capacity of 100MW/200MWh. The Wuhai project doubles that scale, demonstrating that China is now at the global forefront of large-scale applications of semi-solid-state energy storage technology.

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Australia Opens Capacity Investment Scheme Tender 8, Seeking 16GWh of Energy Storage across NEM

Source: Energy Storage News

Pacific Green was one of the successful participants in the CIS, with the Limestone Coast Energy Park (pictured) having been awarded a CISA. Image: Pacific Green.

The Australian government has officially opened the Capacity Investment Scheme (CIS) Tender 8, targeting 16GWh of energy storage capacity across the National Electricity Market (NEM).

The tender represents the largest single energy storage procurement under the CIS programme, reflecting the government’s accelerated deployment timeline for grid-scale storage infrastructure.

Tender 8 registrations opened earlier today (28 November) and will close on 23 January, with submissions closing on 6 February. The tender specifically targets energy storage projects with a minimum 4-hour duration requirement, emphasising the government’s focus on medium-duration storage technologies capable of providing extended grid support services during peak demand periods and renewable energy intermittency events.

The 16GWh capacity target represents a substantial increase from previous tender rounds and aligns with Australia’s expanded CIS target of a total 40GW of renewables and energy storage.

The tender incorporates streamlined assessment processes developed through previous rounds, building on reforms introduced when the government unveiled four tenders for 2025.

These process improvements aim to reduce assessment timeframes and provide greater certainty for project developers while maintaining rigorous evaluation criteria for technical capability, financial viability, and grid integration requirements.

Eligible technologies under Tender 8 include battery energy storage systems, pumped hydro energy storage (PHES), compressed air energy storage, and other proven energy storage technologies capable of meeting the 4-hour minimum duration requirement.

The tender excludes hybrid renewable energy projects, focusing exclusively on standalone energy storage systems that can provide grid services, including frequency regulation, voltage support, and energy arbitrage across multiple market timeframes.

The CIS has demonstrated significant success in previous tender rounds, with substantial energy storage capacity awarded across multiple procurement cycles.

Tender 3 resulted in over 15GWh of energy storage being awarded to successful applicants, while Tender 4 saw 11.4GWh of solar-plus-storage projects receive government support through the programme.

The scheme provides revenue support through Capacity Investment Scheme Agreements (CISAs) that supplement market revenues, enabling project developers to secure financing for energy storage projects that might otherwise face commercial viability challenges in merchant market conditions.

The support mechanism includes floor and ceiling price arrangements that provide revenue certainty while maintaining market exposure and incentives for efficient operation.

Tender 8 evaluation criteria encompass technical specifications, commercial arrangements, grid connection requirements and project development timelines.

Projects must demonstrate grid connection agreements or advanced connection applications with relevant transmission network service providers, along with evidence of site control, environmental approvals, and financial capacity to complete construction and commissioning activities.

The geographic distribution requirements under Tender 8 aim to ensure the deployment of energy storage across multiple states and regions within the NEM, thereby supporting grid resilience and renewable energy integration under diverse network conditions.

The scheme includes milestone requirements and progress reporting obligations to ensure that successful projects advance through the development, construction, and commissioning phases according to agreed-upon schedules.

The DCCEEW will conduct information sessions for potential applicants during December 2025 and January 2026, providing guidance on application requirements, evaluation criteria and commercial arrangements.

Successful Tender 8 projects are expected to be announced in mid-2026, with CISAs enabling project financing and construction commencement. You can find out more about CIS Tender 8 on the official website.

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CLOU Electronics’ Indonesia Energy Storage Base Set for 2026 Commissioning, Targets 3GWh Capacity

Source: CNESA

On November 6, CLOU Electronics announced key progress in its global manufacturing expansion, revealing that its energy storage production base in Indonesia is currently under construction and scheduled to commence operation in 2026. The facility has an initial planned capacity of 3GWh per year, with flexibility for future expansion based on market demand and business growth.

CLOU Electronics is a national high-tech enterprise in China with a number of national and provincial technical centers and laboratories. Focusing on two major fields including new electrochemical energy storage and new power system, CLOU Electronics has long accumulated deep technological expertise and extensive project experience in the energy storage sector. The company has achieved full in-house research, development, and manufacturing capabilities for core system components - including PCS, BMS, EMS, DC/DC converters, and O&MS platforms - enabling it to deliver comprehensive integrated energy storage solutions.

The Indonesia Energy Storage Base marks a strategic milestone in CLOU Electronics’ globalization roadmap. The site will focus on research, development, and large-scale production of key products such as lithium-ion battery energy storage systems and energy storage inverters (PCS). It will also include intelligent production lines, R&D and testing centers, and warehousing and logistics facilities.

Leveraging Indonesia’s abundant nickel and cobalt resources, the project aims to establish a fully integrated overseas industrial ecosystem of “resources-R&D-manufacturing-application.” This approach is expected to reduce supply chain costs and mitigate geopolitical risks, while enhancing production efficiency and responsiveness to regional demand.

As one of the world’s fastest-growing energy storage markets, Southeast Asia has seen rapid expansion driven by the rise of renewable energy installations and urgent power grid upgrades. The commissioning of CLOU’s Indonesian base will enable the company to provide localized products and solutions for utility-scale, industrial, commercial, and off-grid energy storage applications across ASEAN countries, the Middle East, and beyond.

CLOU Electronics has already implemented multiple energy storage projects in Southeast Asia, building a strong reputation and customer network that will support future market development once the new base becomes operational.

The relevant person in charge of CLOU Electronics stated that the Indonesian energy storage production base is a vital component of the company’s globalization strategy. The release of 3GWh annual capacity will significantly enhance the company’s global supply capability and competitiveness. Going forward, CLOU will use the Indonesian base as a hub to deepen its international market presence, accelerate technological innovation, and provide efficient, reliable, and cost-effective energy storage solutions that support global energy transition under the “dual-carbon” goals.

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China’s Newly Installed Renewable Energy Capacity Up 47.7% Year-on-Year in First Three Quarters

Source: Xinhua News Agency

According to China’s National Energy Administration (NEA), in the first three quarters of 2025, China added 310 GW of newly installed renewable energy capacity, representing a year-on-year increase of 47.7% and accounting for 84.4% of the nation’s total new power installations. Specifically, new hydropower capacity reached 7.16 GW, wind power 61.09 GW, solar power (including solar thermal) 240 GW, and biomass power 1.05 GW.

At a regular press conference held by the NEA on the same day, Zhang Xing, Deputy Director-General of the NEA’s General Affairs Department, stated that in the first three quarters of 2025, the NEA remained focused on China’s carbon peaking and carbon neutrality goals, fully implemented the new energy security strategy, and made all-out efforts to advance larger-scale and higher-quality renewable energy development.

On one hand, the installed capacity of renewable energy continued to expand, driving the optimization of China’s energy structure. As of the end of September 2025, China’s total installed renewable energy capacity approached 2,200 GW, up 27.2% year-on-year, accounting for 59.1% of the nation’s total power generation capacity. The combined installed capacity of wind and solar power exceeded 1,700 GW.

On the other hand, renewable power generation maintained steady growth, providing strong support for the country’s overall electricity supply. The latest data show that in the first three quarters of 2025, China’s renewable power generation reached 2.89 million GWh, up 15.5% year-on-year, accounting for around 40% of total power generation and roughly 60% of total industrial power consumption during the same period.

At the press conference, Xing Yiteng, Deputy Director-General of the NEA’s Development and Planning Department, noted that since the beginning of this year, funding and resource guarantees for key energy projects have been continuously strengthened, with accelerated formation of tangible project progress. As a result, national energy investment has maintained rapid growth - with 1.97 trillion yuan invested in key energy projects during the first eight months, marking an 18.2% year-on-year increase.

(Reported by Wang Xi and Dai Xiaohe)

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Power Consumption Exceeds 1 Trillion kWh for Consecutive Periods -- What Does It Mean?

People’s Daily Overseas Edition

In July and August of this year, China’s total electricity consumption

reached 1,022.6 billion kWh and 1,015.4 billion kWh, respectively --

surpassing 1 trillion kWh for two consecutive months.

What does this indicate?

Wind turbines in the Beibu Gulf sea area of the Suping district within the Comprehensive Experimental Zone in Pingtan County, Fujian Province. Photo by Xie Guiming (People Visual)

The Pingtan Comprehensive Experimental Zone in Fujian Province is focusing on the development of the wind power industry, leveraging its abundant offshore wind resources to create a complementary model of “green energy + offshore farms”, delivering clean electricity and supporting carbon reduction efforts.

Recently, residents of Leshan City, Sichuan Province, were shopping for home appliances in a large shopping mall. Photo by Li Huashi (People Visual)

Contestants participating in the distribution network live-line operation competition. Photo by Lu Junyuan (People Visual)

Recently, Wuhu Electric Power Company in Anhui Province under the State Grid, together with the Wuhu Fanchang District Federation of Trade Unions, held the Fanchang District 2025 Power Emergency Supply and Service Skills Competition, supporting the development of local skilled talent and power emergency guarantee.

Total electricity consumption in China has consecutively exceeded 1 trillion kWh! Recently, the National Energy Administration released electricity consumption data for July and August. In July, total electricity consumption reached 1,022.6 billion kWh, up 8.6% year-on-year; in August, it reached 1,015.4 billion kWh, up 5% year-on-year.

What does it mean for a single month’s consumption to surpass 1 trillion kWh? What economic development trends does this reflect?

How should we understand 1 trillion kWh?

-- Horizontally, 1 trillion kWh is roughly equivalent to the total annual electricity consumption of Japan; Vertically, this figure has doubled over the past 10 years.

Electricity consumption is regarded as a “barometer” and “weathervane” of economic and social activity. By observing changes in this data, one can gain a relatively direct insight into the underlying momentum of economic development.

In July this year, China’s total electricity consumption reached 1,022.6 billion kWh, marking the first time monthly consumption exceeded 1 trillion kWh, a milestone also unprecedented globally. In August, total electricity consumption reached 1,015.4 billion kWh, crossing the 1 trillion kWh threshold once again.

What does 1 trillion kWh mean? Horizontally, 1 trillion kWh is roughly equivalent to the total annual electricity consumption of Japan or that of the ASEAN countries; Vertically, compared with July 2015, when electricity consumption first exceeded 500 billion kWh, this figure has doubled over the past 10 years.

By industry, in July, electricity consumption in the primary sector reached 17 billion kWh, up 20.2% year-on-year, with a growth rate 15.3 percentage points higher than the previous month. The secondary sector consumed 593.6 billion kWh, up 4.7% year-on-year, with a growth rate 1.5 percentage points higher than last month. electricity consumption in the the tertiary sector used 208.1 billion kWh, up 10.7% year-on-year, 1.7 percentage points higher than June. Urban and rural household electricity consumption reached 203.9 billion kWh, up 18.0% year-on-year.

It is evident that the secondary sector accounted for the largest share of total electricity consumption in July. As a fundamental factor of industrial production, the stable growth in electricity use indicates the steady development of industrial economy.

“In July, electricity consumption in the secondary sector continued to grow, with high-tech and equipment manufacturing leading the increase”, analyzed by Jiang Debin, Deputy Director of the Statistics and Digital Intelligence Department at the China Electricity Council (CEC). Specifically, in July, electricity consumption in the four high-energy-consuming industries grew 0.5% year-on-year, an increase of 1.2 percentage points compared to the previous month, turning positive after two months of decline. Additionally, most consumer goods manufacturing sectors saw rising electricity usage. In July, electricity consumption in food manufacturing, tobacco products, and agricultural and sideline food processing increased 7.3%, 5.3%, and 5.1% year-on-year, respectively.

In August, electricity consumption in the primary sector grew 9.7% year-on-year, 5.1 percentage points higher than the same period last year, with livestock and fisheries leading at 12.3% and 10.9%, respectively. Electricity consumption in the secondary sector increased 5% year-on-year, 0.3 percentage points higher than July and 1 percentage point higher than August 2024. Within this, the four high-energy-consuming industries grew 4.2% year-on-year, 3.7 percentage points higher than last month. Growth in the tertiary sector slightly declined month-on-month but remained robust at 7.2%. Meanwhile, urban and rural household electricity consumption reached 196.3 billion kWh, up 2.4% year-on-year.

What factors are driving electricity consumption?

-- Rapidly rising power loads under sustained high temperatures; Macroeconomic recovery supporting continued capacity release across industries

What explains the monthly electricity consumption exceeding 1 trillion kWh?

Firstly, sustained high temperatures have driven demand. Since the start of summer, many regions nationwide have experienced hot and humid weather, causing electricity loads to climb rapidly and boosting urban and rural household electricity consumption. On July 4, the national peak load reached 1.465 billion kW, approximately 200 million kW higher than the end of June, setting a historic record (compared with 1.451 billion kW in 2024) and nearly 150 million kW higher than the same period last year. Provinces including Jiangsu, Anhui, Shandong, Henan, and Hubei saw their grids load reach all-time highs. In Jiangsu, the grid load exceeded 150 million kW for the first time, with the peak load rising nearly 40 million kW above the spring average, about 90% of the incremental load used for air conditioning.

“According to the National Climate Center, many places across the country experienced multiple rounds of high temperatures in July, with the national average temperature reaching a historical high for the same period since 1961, driving urban and rural household electricity consumption up 18% year-on-year. Under the sustained hot and humid weather, multiple regions reached record loads. In July, household electricity consumption in Henan, Shaanxi, Shandong, Sichuan, Anhui, and Hubei all rose more than 30% year-on-year”, said Jiang Debin.

Secondly, macroeconomic recovery and industrial production expansion have boosted electricity demand. A series of policies promoting consumption through the “Two New” (large-scale equipment renewal and trade-in of consumer goods) and “Two Majors” (the implementation of major national strategies and the construction of security capabilities in key areas) measures, along with efforts to stabilize industrial growth and curb over-competition, have maintained a recovering economic trend, releasing industrial capacity and further driving total electricity consumption.

“In August, nationwide manufacturing electricity consumption grew 5.5% year-on-year, the highest monthly growth this year. Electricity use in raw material industries such as steel, building materials, non-ferrous metals, and chemicals showed clear recovery, with total consumption up 4.2% year-on-year, 3.7 percentage points higher than July. High-tech and equipment manufacturing demonstrated strong resilience, with total electricity consumption up 9.1% year-on-year, about 4.6 percentage points above the average manufacturing growth rate”, Jiang Debin said. Importantly, all sub-sectors of high-tech and equipment manufacturing saw positive growth, with new energy vehicle production and photovoltaic industry manufacturing maintaining rapid growth, reflecting the robust development of new-quality productivity, creating new economic growth points, and driving electricity consumption upward.

Rising consumption has also contributed to higher electricity use. The consumer market has maintained steady growth this year, and service consumption policies have taken effect, sustaining rapid growth in the service sector. For example, in Jiangsu Province, host of the popular “Jiangsu Football City League” summer events, electricity consumption in fitness and leisure venues increased 23% year-on-year in July. During the same month, catering industry electricity use rose 10.1% year-on-year, while tourist attractions and accommodation electricity consumption increased 10.3% and 5.3% year-on-year, respectively.

What Ensures Stable Power Supply Amid Soaring Electricity

Consumption?

-- Strong energy self-sufficiency, stable operational regulation, and robust emergency response capabilities are key

From the consumption side, China’s record-breaking monthly electricity use -- exceeding 1 trillion kWh -- not only highlights the vitality of economic and social development but also reflects the steady reliability of the power supply.

According to Wang Hongzhi, Director of the China’s National Energy Administration, during the summer peak period (from the second half of July to the first half of August), China experienced extensive high temperatures, heavy rainfall, floods, and typhoons. Meanwhile, the country’s steadily recovering economy posed even greater demands on energy security. Despite these challenges, China’s power supply remained stable and orderly throughout the summer. “Our energy system withstood the peak and safeguarded the bottom line”, said Wang. Overall, China’s energy supply security and resilience have reached a high level.

Stable electricity use is underpinned by a high degree of energy self-sufficiency. Since the start of the 14th Five-Year Plan, China has taken multiple measures to strengthen the stability and security of its energy supply chain. Over 90% of the increase in energy consumption has been met through domestic production. New energy sources have played a major role, achieving two “50%” milestones: The increase in renewable power generation accounts for nearly 50% of total new generation capacity nationwide; Non-fossil energy sources have contributed nearly 50% of the total increase in energy supply. As of the end of August, China’s total installed power generation capacity reached 3.69 billion kW, up 18.0% year-on-year, with wind and solar power combined totaling around 1.7 billion kW. This demonstrates that China’s energy self-sufficiency “base” has become more solid, while the share of green energy continues to rise.

Stable electricity use also relies on robust operational coordination. China has established a comprehensive energy production, supply, storage, and marketing system and a sound mechanism to ensure supply and stabilize prices. Energy storage capacity has been steadily enhanced, while the nationwide oil and gas pipeline network has been expanding rapidly. The large-scale power grid’s capacity to allocate and balance resources across regions has been fully utilized. Before this summer’s power demand peak, several cross-provincial transmission projects, including the Longdong-Shandong and Hami-Chongqing lines, were completed and put into operation. These channels have delivered stable power to many cities, ensuring smooth electricity use during high-demand periods.

Stable power supply also relies on strong emergency support capabilities. When electricity demand surges sharply, power grids face serious challenges， particularly amid increasingly frequent global extreme weather events and natural disasters. To address this, China has established a national-level emergency power support system, consisting of four regional emergency bases in Sichuan-Chongqing-Tibet, South China, North China, and East China. These facilities aim to strengthen the country’s emergency response capacity for coal, oil, and gas, ensuring the long-term stability and reliability of the national energy and power systems. Therefore, no large-scale blackouts have occurred nationwide.

Looking ahead, the National Energy Administration will take the 15th Five-Year Plan for the new-type power system as a guiding framework, adhering to the principle of moderately advanced power development. Efforts will focus on promoting rational and green energy consumption, supporting both economic and social development as well as the public’s growing demand for a better life, moving from “having access to electricity” toward “using electricity efficiently and intelligently.”

(By Liao Ruiling)

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In July and August of this year, China’s total electricity consumption

reached 1,022.6 billion kWh and 1,015.4 billion kWh, respectively --

surpassing 1 trillion kWh for two consecutive months.

What does this indicate?

How should we understand 1 trillion kWh?

What factors are driving electricity consumption?

What Ensures Stable Power Supply Amid Soaring Electricity

Consumption?