China s energy storage share

What is China's energy storage capacity in 2022?

In 2022, China’s cumulative installed NTESS capacity exceeded 13.1 GW, with lithium-ion batteries accounting for 94% (equivalent to 28.7% of total global capacity). China is positioning energy storage as a core technology for achieving peak CO2 emissions by 2030 and carbon neutrality by 2060.

What is the new type energy storage industry in China?

The remaining half is comprised primarily of batteries and emerging technologies, such as compressed air, flywheel, as well as thermal energy. These technologies, known as the “ new type ” energy storage in China, have seen rapid growth in recent years. Lithium-ion batteries dominate the “new type” sector.

How much does energy storage cost in China?

New energy storage also faces high electricity costs, making these storage systems commercially unviable without subsidies. China’s winning bid price for lithium iron phosphate energy storage in 2022 was largely in the range of USD 0.17-0.24 per watt-hour (Wh).

Where does China's storage capacity come from?

The majority of China’s storage capacity comes from large-scale storage projects, such as hydropower with reservoirs on the Yangtze River and gigawatt-level battery energy storage systems in Inner Mongolia. Arial view of the Three Gorges Dam in Hubei province, China. Credit: Sipa US / Alamy Stock Photo

What is China's energy storage strategy?

Localities have reiterated the central government’s goal of developing an integrated format of “new energy + storage” (such as “solar + storage”), with a required energy storage allocation rate of between 10% and 20%. China has created an energy storage ecosystem with players throughout the supply chain.

How has China impacted the energy sector?

In this Q&A, Carbon Brief explores how China has been driving the sector forwards and how it fits into the nation’s wider energy transition. China is currently the world’s largest market for energy storage, followed by the US and Europe, according to BloombergNEF.