The Leap of China’s Energy Storage Industry. 1 article amazing makes it clear!

The Leap of China's Energy Storage Industry

The Latest Progress and Outlook of China’s Energy Storage Technology and Industry

With the transformation of the global energy structure and the rapid development of new energy technologies, the industrial and commercial energy storage industry has become a key force in promoting the energy revolution. Based on the white paper “The Latest Progress and Outlook of China’s Energy Storage Technology and Industry” (April 2024 edition), this article deeply analyzes the latest progress, development trends, challenges, and opportunities faced by China’s energy storage industry.

The Latest Progress of Global and Chinese Energy Storage Industry

By the end of 2023, the global power storage capacity has reached 289.2GW, with an annual growth rate of 21.9%. Among them, the cumulative installed capacity of the new energy storage market is 91.3 GW, with a yearly growth rate of 99.6%. China’s performance in this field is particularly outstanding, with 86.5GW of power storage capacity in operation, a year-on-year increase of 45%, and the proportion of new energy storage has increased by 18.2 percentage points year-on-year. China’s cumulative installed capacity of new energy storage has reached 34.5GW, accounting for 38% of the global market, with an annual growth rate of an astonishing 166%.

Regional and application distribution of China’s energy storage industry

The regional distribution of China’s new energy storage projects shows that 19 provinces have installed more than 100 megawatts of installed capacity, and 14 provinces have exceeded gigawatt hours. In particular, the northwest region has led the development of energy storage in the country due to the high proportion of new energy. In terms of application, new energy storage and independent energy storage projects are advancing rapidly, and the scale of “pre-meter” applications continues to grow significantly, accounting for 97%.

Advances in the Energy Storage Industry are critical for renewable energy integration
Advances in the Energy Storage Industry are critical for renewable energy integration

Technological innovation and market development

In 2023, China’s new energy storage market will continue to develop rapidly, with the number of projects increasing by 46% year-on-year and the scale of new projects increasing by 65% ​​year-on-year. In terms of technological innovation, the application of non-lithium energy storage technology has gradually broken through, such as the first flywheel thermal storage frequency regulation project and the first super-capacitor + lithium battery hybrid storage frequency regulation project. In addition, the 300MW compressed air energy storage project has completed reverse power transmission, and a variety of long-term energy storage technology routes have been included in the list of provincial demonstration projects.

Energy storage battery production and supply chain prices

With the development of battery energy storage technology, Chinese companies have produced more than 185GWh of energy storage lithium batteries in the global market, but due to supply and demand, the industry’s average capacity utilization rate remains at around 50%. The combination of falling raw material prices and other factors has led to fluctuations in energy storage cell prices at the end of 2023. The price of battery-grade lithium carbonate has dropped from a peak of 600,000 yuan/ton to less than 100,000 yuan/ton, a drop of more than 80%.

Policy support and market mechanism

China’s energy storage policy is continuing to exert efforts in development planning, market mechanisms, and new-quality productivity to promote the high-quality development of the new energy storage industry. Policies include the coordinated development of renewable energy and new energy storage and the improvement of the construction of new energy storage participation in the electricity market mechanism. It is expected that by 2024, China’s cumulative installed capacity of new energy storage will exceed pumped storage, ushering in a historic moment.

Prospects of the energy storage industry

Looking ahead, China’s energy storage industry is expected to continue to maintain rapid growth. It is estimated that by 2024, the cumulative installed capacity of new energy storage in China will reach 34.51GW to 75.71GW, and the growth rate of the new market size will exceed 40%. At the same time, Chinese domestic enterprises will accelerate their overseas layout, and the process of market-oriented transactions of energy storage will also be accelerated.

Conclusion

China’s energy storage industry is in a period of rapid development, with fierce market competition, but also full of opportunities. With the advancement of technology, policy support, and market promotion, China’s energy storage industry is expected to achieve higher-quality development and play a greater role in the global energy transformation. With the continuous maturity of new energy storage systems and the innovation of application models, the future of China’s energy storage industry is full of expectations.

Research in the Energy Storage Industry focuses on increasing battery lifespan
Research in the Energy Storage Industry focuses on increasing battery lifespan