Applications: Stationary Energy Storage

Easing Mandates Trigger China ESS Rush This Year but Policies Offer Long-term Support Energy storage remains at the core of Chinaʼs power transition China experienced a rush of BESS and renewable energy installations in May, right before the new changes in renewable power pricing mechanisms took effect in June. Installations have declined in the following months, as the market is still digesting the front-loaded demand. Regulators have also eased the national renewable storage mandates in a recent policy shift, reducing incentives for some renewable projects to rent ESS capacities. However, tender volumes for grid scale ESS projects have remained strong, largely exceeding market expectations. The main reasons are due to policy support:

See the China section for wider commentary on China ESS policies. Source: Content & analysis provided by CRU Group Distinguished Partner). For more information, visit crugroup.com Installations data from China Energy Storage Association CNESA.

Capacity compensation and capacity price from local governments such as Qinghai, Inner Mongolia, Hebei province. This is set to gradually reduce over the coming years Raising peak/off-peak price spread in the spot market. For example, the Qinghai government has devoted to widen the price spread sufficiently to cover energy storage operating costs

Chinaʼs latest plan includes nearly doubling its new energy storage capacity to 180 GW by 2027, up from 95 GW in June. This further confirms that the government still aims to improve the energy system stability even though it has historically outpaced the storage targets, having met its 2025 goal of 30 GW two years early

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