CNESA

Down 35% Year-on-Year! CNESA Analysis of Installed Capacity of the New Grid&Source-Side Energy Storage Projects in October

Source: CNESA

After a small installation peak in September, China's new energy storage market saw a temporary decline in October 2025. According to incomplete statistics from the CNESA Datalink Global Energy Storage Database, both the month-on-month and year-on-year growth of newly commissioned capacity declined in October, mainly due to project cycle factors. Meanwhile, profound structural changes are taking place in the market:

● Short-term decline while long-term growth:

Although October's installed capacity declined, the cumulative capacity in the first ten months of 2025 still maintained a robust 36% growth, and 7-9 GW of projects are expected to come online before year-end, suggesting a record-breaking annual installation.

● Independent storage takes the lead:

In October, independent energy storage projects accounted for more than three-quarters of total installations, becoming the absolute main force.

● Third-party enterprises surpass state-owned giants:

A landmark shift occurred - “third-party enterprises”, represented by equipment manufacturers, accounted for over half of the newly installed capacity for the first time, surpassing traditional large energy groups and highlighting a clear trend toward diversified investment.

● Diverse technologies and accelerated non-lithium deployment:

In addition to mainstream lithium-ion systems, technologies such as compressed air, flow batteries, and flywheels are being accelerated in planning and construction, injecting new momentum into the industry's long-term development.

 

Overall Analysis of New Energy Storage Projects in October

 

According to incomplete statistics from the CNESA Datalink Global Energy Storage Database, in October 2025, China added 1.70 GW / 3.52 GWh of newly commissioned new energy storage capacity - down 35% and 49% YoY, and 51% and 66% MoM, respectively. Although the first month of Q4 saw a decrease, total new capacity from January to October reached 35.8 GW, up 36% YoY. Following the September commissioning surge, the October decline mainly reflected the influence of construction cycles.

As of the end of October, about 7-9 GW of new energy storage projects were under commissioning or scheduled for grid connection by year-end. If these projects proceed as planned, China's new commissioned capacity in 2025 could reach 42-45 GW. This estimate is based solely on currently known under-construction/commissioned project data and does not represent a final forecast.

Figure 1. Installed Capacity of Newly Commissioned New Energy Storage Projects in China, Jan-Oct 2025

Source: CNESA Datalink Global Energy Storage Database

https://www.esresearch.com.cn/

Note: Year-on-year (YoY) compares the same period last year; month-on-month (MoM) compares the previous statistical period.

Analysis of Grid&Source-side New Energy Storage Projects in October

 

In October, newly commissioned grid&source-side new energy storage capacity totaled 1.51 GW / 3.04 GWh, representing year-on-year declines of 35% and 49%, and month-on-month declines of 53% and 69%. 

 

Key trends included:

 

Independent storage accounts for over 75%, with capacity down 30% YoY

 

Independent energy storage added 1.18 GW / 2.31 GWh, down 30% and 48% YoY, with 78% of projects above 100 MW.

On the source side, new installations totaled 327.5 MW / 735 MWh, representing a YoY growth of -47%/-52%, all paired with renewable energy projects, involving various specific application scenarios including UHV DC transmission and solar-grazing hybrid application.

Figure 2. Application Distribution of Newly Commissioned Grid&Source-Side Energy Storage Projects in Oct. 2025 (MW%)

Source: CNESA Datalink Global Energy Storage Database

https://www.esresearch.com.cn/

Note: “Others” include substations and similar facilities.

Western China accounts for over 50% of new installations; Ningxia and

Shanxi lead in scale

 

By region, western China contributed over half of October's new capacity, with the northwest region alone accounting for nearly 30%, the highest nationwide.

 

By province, Ningxia and Shanxi province ranked joint first in new power capacity, while Ningxia topped in new energy capacity.

 

As a key national new energy demonstration zone, Ningxia's renewable capacity had exceeded 50 GW by August 2025, representing 60% of total power installations - with solar surpassing coal to become the largest power source.

High proportions of wind and solar have created growing demand for storage to smooth grid fluctuations and enhance renewable integration. In addition, large-scale national initiatives such as the “Desert, Gobi and Wasteland” renewable base and UHV DC transmission projects have further expanded the application space for energy storage in Ningxia.

Figures 3. Regional Distribution of Newly Commissioned Grid&Source-Side New Energy Storage Projects in China, Oct. 2025 (MW%)

Source: CNESA Datalink Global Energy Storage Database

https://www.esresearch.com.cn/

Figures 4. Provincial Distribution of Newly Commissioned Grid&Source-Side New Energy Storage Projects in China, Oct. 2025 (MW%)

Source: CNESA Datalink Global Energy Storage Database

https://www.esresearch.com.cn/

Third-party enterprises drive growth, highlighting diversification of

investors

 

Driven by rising market demand, national policy incentives, technological diversification, and declining costs, the energy storage market's investment ecosystem is becoming increasingly diverse.

In October, projects invested by private power companies such as Fuguang New Energy and Yunsheng New Energy and energy storage/new energy manufacturers such as PotisEdge and Natrium Times (NTEL) accounted for over 50% of new installations - up 18 percentage points from September.

Nevertheless, large state-owned energy groups remain key players due to their advantages in project investment scale, construction coordination, and operational management.

In October, China's “Five Major and Six Minor” and “Two Grid and Two Engineering” state-owned power enterprises contributed 46% of newly installed capacity. Among them, “Five Major and Six Minor” and “Two Grid and Two Engineering” including CHN Energy, SPIC, and China Three Gorges Corporation accounted for 31%, down 10 percentage points from September, while the “Two Grid and Two Engineering” increased their share by 4 points.

Figure 5. Ownership Distribution of Newly Commissioned Grid&Source-side New Energy Storage Project in China, Oct. 2025 (MW%)

Source: CNESA Datalink Global Energy Storage Database

https://www.esresearch.com.cn/

Note: “Third-party enterprises” refer to entities other than large state-owned generation groups, the two grid companies, two construction groups and local energy companies.

Acceleration in non-lithium technology deployment

 

From a technical perspective, newly commissioned grid&source-side projects were dominated by lithium iron phosphate batteries, accounting for 98.5% of capacity, with sodium-ion batteries representing 1.5%.

In terms of planned and under-construction projects, deployment of non-lithium technologies such as compressed air and hybrid storage is accelerating, signaling faster diversification of technology pathways.

 

  • Compressed air: Multiple 100 MW-level compressed air projects have completed filing and entered the planning stage; the 350 MW Anning (Yunnan) compressed air project has begun construction.

  • Hybrid storage: Hebei Province announced a pilot list including 97 hybrid projects totaling 13.82 GW; construction of two 100 MW lithium + flow battery projects began in Weifang, Shandong; the 100 MW flywheel-lithium hybrid station is under construction in Heishan, Liaoning; the 300 MW / 1200 MWh independent power-side storage project using lithium + flow battery hybrid technology has entered the grid-commissioning stage at Gushanliang, Ordos, Inner Mongolia.

Figure 6: Technological Distribution of Newly Commissioned Grid&Source-Side New Energy Storage Projects in China, Oct. 2025 (MW%)

Source: CNESA Datalink Global Energy Storage Database

https://www.esresearch.com.cn/

The China Energy Storage Alliance (CNESA) has consistently adhered to standardized, timely, and comprehensive information collection practices to continuously track developments in energy storage projects. Leveraging its long-term data accumulation and in-depth professional analysis, CNESA regularly publishes objective market analyses on installed energy storage capacity, providing valuable references for industry decision-making. Since June 2025, the monthly energy storage project analysis has been divided into two sections: “Grid&Source-Side Market” and “User-Side Market”. This issue focuses on interpreting the grid&source-side market in October.

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1. Dec.4-5 | 2025 China Energy Storage CEO Summit | Xiamen, Fujian

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2025 5th International Conference on Energy Storage Safety Technology and National Key R&D Program Workshop Successfully Held

Source: CNESA

On October 16, 2025, the 2025 5th International Conference on Energy Storage Safety Technology and the workshop on the National Key R&D Program project “Collaborative Research on Key Technologies for International Lithium-Ion Battery Energy Storage Safety Evaluation” was opened at the Crowne Plaza Tianjin Meijiangnan by IHG.

The forum was co-organized by the China Energy Storage Alliance (CNESA), the Tianjin Fire Science and Technology Research Institute of MEM, and the National Industry-Education Platform for Energy Storage (Tianjin University). Coinciding with the 130th anniversary of Tianjin University and the 60th anniversary of the Tianjin Fire Science and Technology Research Institute of MEM, the event carried special significance in bridging past achievements and future developments. It brought together more than 600 participants on-site from government, industry, academia, and research, with over 40,000 online viewers, collectively contributing ideas for the safety and sustainable development of the energy storage industry.

The successful convening of the seminar was also strongly supported by Kehua Digital Energy, Envision Energy, Trina Storage, Pylontech, Syi Tsing Energy Tech, Robestec Energy, Sermatec, Shell China, Potisedge, Risen Energy, CSA Group, and UL Solutions.

 

Opening:

Gathering Industry Leaders to Outline a Safety Blueprint

The opening ceremony brought together senior officials from regulatory authorities, distinguished experts, and industry elites. Attendees included leaders from the Safety Department of the National Energy Administration and the Electronics Information Department of the Ministry of Industry and Information Technology, as well as Zhang Laibin, academician of Chinese Academy of Engineering and professor of China University of Petroleum (Beijing) and Sun Jinhua, academician of European Academy of Sciences and professor of University of Science and Technology of China, alongside representatives of the organizing institutions.

Sun Zhengyun

Vice Chairman and Secretary-General, China Energy Research Society

The opening ceremony was hosted by Sun Zhengyun, Vice Chairman and Secretary-General of the China Energy Research Society.

Li Bin

Member of the CPC Party Committee, Vice President, and Professor, Tianjin University

Professor Li Bin, member of the Party Committee and Vice President of Tianjin University, delivered the opening remarks. He noted that electrochemical energy storage is a core element for ensuring the stable operation of new power systems, but recent frequent safety incidents involving lithium-ion battery storage have posed systemic risks. He emphasized that energy storage safety is a critical issue for national energy security, and it is essential to develop a scientifically grounded, internationally recognized safety evaluation standard system through multidisciplinary collaboration and coordination among industry, academia, research, and application. By doing so, the “key variable” of energy storage safety can be transformed into the “greatest driver” for advancing the construction of new power systems.

Chen Haisheng

Chairman, China Energy Storage Alliance (CNESA); Director, Institute of Engineering Thermophysics, Chinese Academy of Sciences

In his speech, Chen Haisheng, Chairman of CNESA and Director of the Institute of Engineering Thermophysics at the Chinese Academy of Sciences, stated that while the energy storage industry is thriving, safety remains its lifeline for sustainable development. He noted that frequent global energy storage incidents in recent years have sounded an alarm for the industry. To meet these challenges, the entire sector is systematically building safety defenses:

● Policy level: The government has introduced top-level designs to strengthen energy storage safety management.

● Standards: The industry is entering a new phase of mandatory safety regulations, with the first compulsory national standard implemented domestically, while both domestic and international regulations are tightening.

● Technology level: Full-scale combustion testing has become a crucial method to verify safety and gain market trust.

 

Frontline Insights:

Academicians and Experts Discuss Key Technological Challenges

The main forum reports focused on safety technologies across the entire chain, from materials and batteries to systems and evaluation standards.

Zhang Laibin

Academician, Chinese Academy of Engineering; Professor, China University of Petroleum (Beijing)

In his report, “Safety and Emergency Assurance Technologies for Deep Underground Energy Storage”, Professor Laibin Zhang, Academician of the Chinese Academy of Engineering and Professor at China University of Petroleum (Beijing), discussed the advantages and challenges of using deep underground spaces for physical energy storage. He systematically presented the five key technologies - deep gas storage, hydrogen storage, carbon sequestration, compressed air energy storage, and helium storage - along with their associated risks and challenges, emphasizing that only by effectively addressing safety issues can the application of deep energy storage spaces achieve sustainable development.

Sun Jinhua

Academician, European Academy of Sciences; Professor, University of Science and Technology of China

Professor Sun Jinhua, Academician of the European Academy of Sciences and Professor at the University of Science and Technology of China, systematically presented his report on “Fundamentals and Technological Advances in Fire Prevention and Control for Electrochemical Energy Storage”. He pointed out that fire safety is a core challenge amid the rapid development of electrochemical energy storage, and proposed a systematic solution based on three lines of defense: intrinsic safety, process safety, and fire protection safety. This approach includes developing high-safety materials to enhance intrinsic battery safety, using intelligent monitoring and hazard mitigation to suppress faults at an early stage, and developing precise firefighting technologies to prevent small fires from escalating. Finally, Professor Sun emphasized the need to strengthen industry self-discipline and eliminate irrational price competition, warning that such competition inevitably leads to declining product quality, increased safety incidents, and a damaged industry ecosystem. He called for standards and innovation to jointly safeguard the safe and high-quality development of the industry.

Xie Jia

Professor, Huazhong University of Science and Technology

In his report, “Thermal Runaway Mitigation Strategies and Key Materials for Lithium Batteries”, Professor Xie Jia from Huazhong University of Science and Technology revealed the safety risks of electrochemical energy storage through quantitative analysis. Using a 20-foot 314Ah energy storage container as an example, he noted that it contains up to 100 GJ of energy, equivalent to 24 tons of TNT. He emphasized that energy storage safety must start from the battery itself: preventing thermal runaway, minimizing energy release if it occurs, avoiding chain-fire incidents, and combining these measures with emergency response to enhance overall safety. Based on a deep understanding of the three key stages of the thermal runaway chain reaction, he proposed constructing “three lines of defense” within the battery itself and highlighted that developing intrinsic thermal runaway mitigation strategies and key materials is the core approach to achieving stage-wise precise intervention and fundamentally improving safety.

Chen Haosen

Professor, Beijing Institute of Technology

In his report, “Intelligent Battery Technologies for Intrinsic Safety”, Professor Chen Haosen from Beijing Institute of Technology highlighted that achieving intrinsic battery safety requires leveraging AI technologies to overcome the traditional sensing and management limitations of battery cells. Currently, his team focuses on AI for Service, using intelligent methods to enable precise battery state prediction and efficient management. To this end, they developed embedded chip sensors capable of real-time, multidimensional monitoring of temperature, strain, pressure, and five types of characteristic gases. This technology transforms the battery’s internal state from a ‘black box” into a “white box”, creating a unique “battery fingerprint” that provides essential data for early prediction, early warning, and early intervention. The approach has already facilitated the large-scale industrial application of domestically developed intelligent sensing technologies through industry collaborations.

Li Jin

Deputy Director and Researcher, Tianjin Fire Science and Technology Research Institute of MEM

In his report, “Safety Evaluation Technologies for Lithium-Ion Battery Energy Storage Systems”, Researcher Li Jin, Deputy Director of the Tianjin Fire Research Institute, highlighted that in response to the serious challenge of frequent fires at energy storage facilities worldwide, the institute is leading the National Key R&D Program project “Collaborative Research on Key Technologies for International Lithium-Ion Battery Energy Storage Safety Evaluation”. The project has developed a comprehensive safety evaluation system covering all levels from cell, module, cluster, system, to entire power station. This system introduces a composite evaluation method integrating dynamic and static indicators, establishing quantitative safety performance grading techniques. The project outcomes have been applied in domestic and international energy storage safety assessments, and have supported the development of multiple national and international standards, providing a key “China approach” and technological support to improve energy storage safety and promote high-quality industry development.

Wang Fang

Chief Scientist, China Automotive Technology & Research Center Co., Ltd.

In her report, “Research and Evaluation of Energy Storage Battery Safety Technologies”, Wang Fang, Chief Scientist at the China Automotive Technology & Research Center, emphasized that energy storage battery safety is a systemic engineering challenge, requiring a comprehensive safety evaluation system covering all application scenarios, the full life-cycle, and all product levels. She noted that safety is the fundamental “veto line” in both energy storage and new energy vehicle sectors. Based on extensive accident analysis, Wang highlighted that battery safety must extend beyond the individual cell to a full-chain, system-level approach, closely integrated with specific application scenarios and real-world operating conditions. By implementing a full-chain framework encompassing design, application, usage, and management, the industry can continuously advance safety technologies.

 

Major Release:

“Self-Regulation Practice Guidelines” for the Energy Storage Industry

At the event, the “Self-Regulation Practice Guidelines for Containerized Lithium-Ion Battery Energy Storage Systems” was unveiled, which is a milestone achievement critical to the healthy development of the energy storage industry. Led by the China Energy Storage Alliance (CNESA) and jointly initiated by 25 leading industry enterprises from the CNESA Executive Council, this document is the industry’s first normative guidance specifically for containerized lithium-ion battery energy storage systems. It also marks the first time the industry has translated collective consensus into a systematic set of practical standards.

Representatives from 16 leading companies including HyperStrong, CATL (Contemporary Amperex Technology), Sungrow, CERI (Huaneng Clean Energy Institute), CRRC Zhuzhou Institute, Envision Energy, Soaring Electric Technology, XYZ Storage, Sineng Electric, Kehua Digital Energy, ZTT Storage, Trina Storage, Sunwoda, Gotion High-Tech, TBEA (formerly Tebian Electric Apparatus), and EVE Energy jointly took the stage to sign and witness this important moment.

 

In-Depth Discussions:

Three Parallel Sub-Forums Spark Innovative Ideas

In the afternoon, three parallel sub-forums were held, with topics of greater depth and specificity:

 

Sub-Forum 1: “Energy Storage Safety Technologies and Application Innovation” focused on the cutting-edge safety technology practices and challenges in the industry. It was chaired by Kong Depeng, Associate Dean and Professor at the School of Mechanical and Electrical Engineering, China University of Petroleum (East China). Experts from University of Science and Technology of China, Kehua Digital Energy, Pylon Technologies, Shell China, and CSA Group shared frontline results on topics including large-scale energy storage fire testing methods and innovations, full-stack safety technology solutions, industrial and commercial energy storage safety practices, and applications of immersion cooling fluids.

Following this, the “Large-Scale Fire Test” roundtable discussion, chaired by Researcher Wang Qingsong from the University of Science and Technology of China, brought together experts and leaders from Institute of Building Fire Research of China Academy of Building Research, Sungrow, Trina Storage, Envision Energy, and UL Solutions’ Energy & Industrial Automation Division. They engaged in in-depth debates on the necessity of extreme testing, differences in standards, certification costs, and how these factors translate into market competitiveness, providing the industry with practical technical pathways and market insights.

 

Sub-Forum 2: “Energy Storage Fault Diagnosis and Safe Operation & Maintenance” focused on how to prevent risks through refined management and advanced technologies.

The session was chaired by Professor Zhu Li, Deputy Director of the National Industry-Education Platform for Energy Storage (Tianjin University). Experts from Tianjin University, Southern Electric Power Research Institute, Robestec Energy, Pinggao Group, and AlphaESS shared cutting-edge solutions to enhance the reliability of energy storage systems, covering topics such as core protection technologies for lithium systems, full life-cycle battery management, immersion cooling technology, online early-warning systems, and digital twin applications.

The subsequent roundtable discussion, themed “Reliability Assessment of Energy Storage Systems and Cross-Industry Insights”, was chaired by Associate Professor Li Chao from Tianjin University. Experts from the Tianjin Fire Science and Technology Research Institute of MEM, CATARC Certification, CALB, Kehua Tech Data Center, and Huawei Digital Power explored how reliability practices from data center UPS and automotive-grade BMS systems could be applied to the energy storage sector. They also systematically analyzed the key role of advanced assessment methods such as FMEA and FTA in building a comprehensive life-cycle safety evaluation framework for energy storage systems.

 

Sub-Forum 3: “AI Empowering Energy Storage Safety” showcased the immense potential of cutting-edge technology in enhancing the intrinsic safety of energy storage.

The session was chaired by Associate Researcher Chu Yuxi from the Tianjin Fire Science and Technology Research Institute of MEM. Experts from Huazhong University of Science and Technology, Shenyang Fire Science and Technology Research Institute of MEM, Syi Tsing Energy Tech, Potisedge, Sermatec, and TEPDI (China Energy Engineering Group Tianjin Electric Power Design Institute Co., Ltd.) shared innovative AI-based practices in battery state sensing, intelligent early warning, health assessment, and thermal management.

The following roundtable discussion, themed “Responding to Energy Storage Incidents: Design + Fire Protection + Emergency Management”, was moderated by Tang Liang, Deputy Secretary-General of the China Energy Storage Alliance (CNESA). Experts and leaders from State Grid Jiangsu Electric Power, Huaneng Clean Energy Institute, China University of Mining and Technology (Beijing), and HyperStrong conducted in-depth discussions on the necessity and controversies surrounding fire suppression system configurations in energy storage systems, concepts of emergency response, and forward-looking goals for energy storage safety. The discussion provided a systematic framework for building a safety defense line covering the entire chain - from design and early warning to emergency handling.

In addition, on October 15, the conference hosted a closed-door seminar on the National Key R&D Program “International Cooperative R&D on Key Technologies for Lithium-Ion Battery Energy Storage Safety Assessment”, as well as a CNESA Energy Storage Safety Committee working meeting. On October 17, participants visited the TEDA Power 20.1 MW / 40.2 MWh grid-side energy storage project, achieving a close integration of theory and practice.

 

Summary and Outlook:

Building Consensus to Safeguard Steady and Sustainable

Industry Growth

2025 5th International Conference on Energy Storage Safety Technology was a high-standard, high-level, and high-impact industry event. It not only showcased China’s latest research achievements and technological advancements in the field of energy storage safety but also, through the release of the Self-Regulation Practice Guidelines, demonstrated the sector’s firm commitment to self-regulation and healthy development.

The forum forged a strong consensus that “safety is the cornerstone and lifeline of large-scale energy storage development”. It emphasized that only by reinforcing the safety bottom line can the energy storage industry unlock its full potential and play a greater role in driving the energy transition.

CENSA Upcoming Events:

1. Dec.4-5 | 2025 China Energy Storage CEO Summit | Xiamen, Fujian

Register Now to attend

Read more: http://en.cnesa.org/new-events-1/2025/12/4/dec4-5-2025-china-energy-storage-ceo-summit

2. Apr. 1-3, 2026 | The 14th Energy Storage International Conference & Expo

Register Now to attend, free before Oct 31, 2025.

Read more: https://en.cnesa.org/new-events-1/2026/4/1/apr-1-apr3-the-14th-energy-storage-international-exhibition-amp-expo

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