The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

China targets 30GW of battery storage by 2025 as BESS output grows 150%

LinkedIn
Twitter
Reddit
Facebook
Email

China is targeting a non-hydro energy storage installed capacity of 30GW by 2025 and grew its battery production output for energy storage by 146% last year, state media has said.

The statement from the National Development and Reform Commission (NDRC) and the National Energy Administration said the deployment is part of efforts to boost renewable power consumption and ensure grid stability.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The 30GW figure includes all storage processes using electrochemical, compressed air, flywheel and supercapacitor systems but not pumped hydro although plans to increase the latter substantially have also been reported.

The country is aiming for 50% electricity generation from renewable power by 2025, up from 42% currently.

Wei Hanyang, a power market analyst at research firm BloombergNEF, said lithium-ion costs will come down to help China’s goals: “While the cost-learning curve is still relatively slow now, the 14th Five-Year-Plan (2021-25) has made a clear goal for the per unit cost of energy storage to decrease by 30 percent by 2025. This will hopefully accelerate the industry pace.”

Meanwhile, the State Grid Corporation of China (SGCC) reportedly plans to increase its capacity of battery storage to 100GW in 2030 from 3GW today, and do the same for pumped hydro storage from 26GW today. That is according to SGCC chairman Xin Baoan in a Chinese-language commentary published in the state-owned People’s Daily.

China overall is targeting 120GW of pumped hydro by 2030, according to the National Energy Administration.

If true, these 2030 figures would completely blow out of the water recent forecasts on installed storage power capacity in the Asia-Pacific region, like those in Guidehouse’ recent report, which pegged the figure at just 74GW.

As with other countries, pumped hydro is the vast majority of energy storage GW installed in China today.

The Ministry of Industry and Information Technology has also recently revealed that China’s production output for lithium-ion batteries for energy storage reached 32GWh in 2021, up 146%. That is 10% of its total lithium-ion battery output, which was 324GWh, a 106% increase resulting in a market worth 600 billion Yuan (US$95 billion).

The country dominates the global lithium battery supply chain although Europe and the US are both making large strides to increase domestic production to be less reliant on importing from the Far East.

Read Next

March 28, 2024
GRIDCO, in the Indian state of Odisha, is holding a competitive solicitation for 500MW/2,500MWh of standalone battery storage resources.
Premium
March 14, 2024
The COO of one of the few energy-storage focused lithium-ion gigafactory companies in Europe, Morrow Batteries, talked to Energy-Storage.news about the firm’s go-to-market strategy and what the future holds for Europe’s gigafactory space.
Premium
March 12, 2024
System integrator Powin is working on a new grid-scale BESS product to compete with increasingly competitive product from China, senior VP Danny Lu told us, while also discussing its Waratah project in Australia and fire safety.
March 4, 2024
Energy Vault has connected its first commercial EVx gravity-based energy storage system to the grid in China, while construction has been launched on three others, all-in-all totalling 468MWh of capacity.
February 28, 2024
Sungrow tells Energy-Storage.news that it does not currently have plans to launch its own lithium-ion battery cell production for battery energy storage system (BESS) products, a route being taken by other China-based system integrators. 

Most Popular

Email Newsletter