China’s energy storage capacity using new tech almost quadrupled in 2023, National Energy Administration says

The sector is a ‘new driving force’ for economic development in China after attracting more than 100 billion yuan (US$13.9 billion) in total investment since 2021: NEA official

China is rapidly expanding its energy storage facilities to absorb record-breaking levels of renewable energy generated from intermittent sources such as wind and solar

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Sectors related to clean energy, including renewables, nuclear power, electricity grids, energy storage, electric vehicles and railways, were the biggest contributors to China’s economic growth in 2023, according to the Helsinki-based Centre for Research on Energy and Clean Air. Photo: Shutterstock

Published: 3:30pm, 26 Jan 2024

China’s energy storage sector nearly quadrupled its capacity from new technologies such as lithium-ion batteries over the past year, after attracting more than 100 billion yuan (US$13.9 billion) in direct investment over the past couple of years.

Overall capacity in the new-type energy storage sector reached 31.39 gigawatts (GW) by the end of 2023, representing a year-on-year increase of more than 260 per cent and almost 10 times the capacity in 2020, China’s National Energy Administration (NEA) said in a press conference on Friday.

New-type energy storage refers to energy storage that uses new technologies, such as electrochemical energy storage, compressed air, flywheel and thermal energy storage, but does not include pumped hydro storage measures.

Total investment in building energy storage projects has exceeded 100 billion yuan since 2021, making the sector a “new driving force” for China’s economic development, said Bian Guangqi, an NEA official.

“New energy storage has increasingly become a key technology as part of China’s construction of new energy systems and new power systems,” Bian said. “It provides an important direction for cultivating emerging industries, and an important starting point for promoting the green and low-carbon transformation of energy production and consumption.”

China is rapidly expanding its energy storage facilities to absorb record-breaking levels of renewable energy generated from intermittent wind and solar sources to ensure a stable power supply, as the country works towards having 80 per cent of its total energy mix from non-fossil fuel sources by 2060, the year Beijing wants to achieve net-zero carbon emissions.