Energy storage bolstering nation's electricity system

China continues to maintain the world's largest installed capacity in new energy storage, marking a historic transition for the technology from a supplementary role to a critical backbone supporting the nation's modern power system, according to a newly released official report.

Surging past previous records, the country's installed capacity of new energy storage reached 136 gigawatts by the end of 2025, marking an 84 percent increase year-on-year and a massive 40-fold expansion compared to the end of 2020, said the China New Energy Storage Development Report (2026) issued by the National Energy Administration.

The sector's rapid growth has delivered immediate operational benefits to the national grid, the report said.

In 2025, new energy storage capacity broke the 100 GW milestone for the first time — more than double the total capacity of traditional pumped-hydro storage. Over the year, these facilities successfully absorbed more than 30 billion kilowatt-hours of renewable electricity, boosting the national renewable energy utilization rate by approximately 2 percentage points.

Investment in new energy storage, together with charging and battery swapping infrastructure, hydrogen energy, and integrated source-grid-load-storage systems, has also been rising in recent years, according to the NEA.

Xu Jilin, deputy director-general of the NEA's Department of Energy Conservation and Technology Equipment, said during the 14th Five-Year Plan period (2021-25), China's new energy storage sector progressed from early-stage commercial application to a new phase of large-scale development, building a solid foundation for high-quality industry growth and multidimensional value creation.

In addition to rapid volumetric growth, the sector has demonstrated deepening technological innovation. A diversified development model has taken shape, led by lithium-ion battery storage while incorporating various advanced technological routes, according to the NEA.

Concurrently, the operational effectiveness and regulation capabilities of these storage systems have steadily improved.

The annual equivalent utilization hours for new energy storage nationwide rose from 611 hours in 2023 to 911 hours in 2024, and reached 1,195 hours in 2025, reflecting its expanding role in balancing power supply and demand, said the report.

This enhanced storage infrastructure played a pivotal role during recent summer electricity demand spikes driven by sustained economic growth and hot weather, during which national electricity loads broke historical records three times.

According to the report, storing energy during normal operations allows the system to stand firm at critical moments.

For instance, in July 2025, when national peak electricity demand exceeded 1.5 billion kW, major industrial provinces such as Jiangsu and Shandong mobilized centralized dispatch of new energy storage facilities during peak hours. Peak discharge power reached 7.14 GW in Jiangsu and 8.04 GW in Shandong — equivalent to operating seven to eight 1,000-megawatt coal-fired units at full capacity — with a simultaneous dispatch rate exceeding 95 percent.

This reliable performance was further supported by broader grid infrastructure upgrades, including the commissioning of the Shaanxi–Anhui ultra-high voltage direct current project, bringing the total number of operational UHV corridors nationwide to 46, with a cross-regional transmission capacity exceeding 340 GW.

Looking ahead, the report outlines key tasks for 2026 and plans for the 15th Five-Year Plan period (2026-30). Key initiatives include supporting breakthroughs in core technologies, planning the construction of national energy research and development innovation platforms in the new energy storage domain, standardizing project management, and promoting efficient and value-driven market competition.

Energy storage, coupled with auxiliary systems such as smart microgrids and vehicle-to-grid networks, plays a critical role in maintaining grid stability, said Zhu Gongshan, chairman of GCL Group, China's largest private power enterprise.

These technologies are indispensable for swiftly balancing power output against shifting demand. "By offering dependable backup electricity, they help forge a highly resilient and adaptable energy network," Zhu said.