PowerChina has begun construction on what is claimed to be the world’s largest generation-side electrochemical energy storage project.
On June 30, PowerChina announced that an official groundbreaking had taken place for the 1,000MW/6,000MWh facility in Chayouzhong Banner, Ulanqab, Inner Mongolia, undertaken by PowerChina.
The project adopts an engineering, procurement and construction (EPC) turnkey contract model including operation & maintenance (O&M) services. The site in Ulanqab, central Inner Mongolia, has an average altitude of 1,700 meters, with an annual sunshine duration of 3,014 hours. The project site possesses exceptional natural advantages for renewable energy development.
The project involves the construction of a 1,000MW/6,000MWh electrochemical shared energy storage station, covering an area of approximately 700 mu (about 46.7 hectares). The main infrastructure includes 1,200 units of 5.016MWh lithium iron phosphate (LFP) energy storage battery cabins, four 250MVA dual-split 220kV main transformers, and a new 220kV transmission line linked to the Chayouzhong 500kV substation.
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Alongside advanced LFP energy storage technology the project features integrated power conversion systems (PCS), step-up systems and energy management systems (EMS). It can independently participate in grid frequency regulation, peak shaving, power market trading and capacity compensation, enabling multiple functions like peak load shifting and load tracking.
According to an earlier announcement by PowerChina, the total contract value for this project is approximately CN¥6.282 billion (US$877 million). It comprises: the EPC contract value of CN¥6.252 billion and the operation and maintenance cost of CN¥30 million.
The total construction period spans 214 calendar days, while the O&M period is set at 20 years.
Notably, China Industrial Association of Power Sources (CIAPS) data reveals that the average bidding price for energy storage systems in 2025 has dropped to CN¥0.4687/Wh, registering a decline of more than 20% compared with 2024. The project’s stringent 214-day construction deadline presents potential challenges. Should cost-control measures prove insufficient, it could affect the company’s gross margin.
This project is a vital part of Inner Mongolia’s integrated “Wind – Power – Hydrogen – Storage” strategy. It will support the Autonomous Region in achieving its goal of attaining more than 50% renewable energy capacity by 2025 and improving the grid stability of North China’s power network.
