State Grid Expert: 4-Hour Storage is the Optimal Balance Between Substitution Effect and Economics

At the "Photovoltaic Industry 2026 First Half Development Review and Second Half Outlook Seminar," hosted by the China Photovoltaic Industry Association on July 24, Dai Hongcai, Director of the New Energy Research Institute at the State Grid Energy Research Institute Co., Ltd., analyzed new energy grid integration trends from the power grid's perspective.

He noted that in the first half of the year, new energy installations in the State Grid's operational areas declined by 57.7% year-on-year. However, photovoltaics remain the primary driver of new energy growth, accounting for 64% of new installations. In terms of power generation, the share of photovoltaic power generation has reached 13%.

Dai Hongcai specifically emphasized that looking toward the "15th Five-Year Plan," energy development is shifting from quantitative growth to qualitative growth. The combination of photovoltaics and energy storage is a crucial future direction, and 4-hour energy storage represents the optimal balance between substitution effectiveness and economic feasibility.