China's new energy storage capacity has exceeded 100 GW by the end of September, securing its position as the world leader, according to the National Energy Administration. This marks a 30-fold increase compared to the end of the 13th Five-Year Plan period, accounting for over 40% of global installed capacity. Notably, large-scale projects dominate, with single-site installations of 100 MW or above comprising more than two-thirds of the total. Utilization hours for new energy storage reached approximately 770 hours in the first three quarters, up 120 hours year-on-year, demonstrating its growing role in stabilizing renewable energy integration and enhancing grid security.
New energy storage, which excludes pumped hydro, encompasses technologies like electrochemical storage, compressed air, flywheels, thermal/cold storage, and hydrogen storage. As China pursues its dual-carbon goals, the rapid expansion of variable renewable energy (e.g., wind and solar) has heightened demand for these solutions to balance grid fluctuations and peak loads—making them pivotal for building a modern power system.
Industry reports project China's new energy storage capacity to hit 131.3 GW by 2025, following a 126.5% surge to 78.3 GW in 2024. Recent sector momentum includes major orders: NARI Relay's agreement with PacificGreen Group and Hopo Digital Energy's 520-million-yuan storage system contract.
Analysts remain optimistic: - Open Source Securities notes improving profitability in upstream PV sectors and robust global demand for energy storage, with battery supply shortages and rising prices signaling sustained industry vitality. - East Asia Securities highlights China's capacity compensation policies driving unexpected demand growth (30-40% projected), strong U.S. installations post-Inflation Reduction Act, and booming markets in Europe/Middle East. Residential storage inventories in Europe have normalized, while commercial/industrial demand accelerates alongside emerging markets reaching grid parity.
Key industry players: 1. CATL (03750): Reported Q3 net profit of 18.55 billion yuan (+41.2% YoY), benefiting from stable gross margins and surging global storage demand. 2. CALB (03931): H1 revenue grew 31.7% to 16.42 billion yuan, with energy storage sales skyrocketing 109.7% to 5.76 billion yuan. 3. SHUANGDENG (06960): A core AIDC storage provider for Alibaba, JD.com, and data center operators. Management estimates a 10x surge in backup power needs if AIDC energy consumption grows tenfold, with green energy integration further expanding storage opportunities.