New Energy Storage Value Creation Introduces Innovative Approaches in China’s Energy Sector

New Energy Storage Value Creation Has Entered a “New Era”

Date: April 22, 2025, 10:18 AM

By: Wang Jie

The National Development and Reform Commission and the National Energy Administration jointly released the “Guidance on Deepening the Reform of the New Energy Storage Market” in February of this year, known as Document No. 136. The document clarifies that energy storage will not be limited to new energy projects, and it sets out preliminary conditions for grid connection and access.

Over the years, the policy framework for supporting energy storage development has fundamentally changed, particularly with the booming development of the new energy industry. Against this backdrop, the new energy storage industry is expected to scale up significantly, promoting market development through a focus on pure price comparison, regulatory frameworks, and technological advancements.

As the market navigates these changes, questions arise: How will the market respond? What actions should enterprises take? In the future, will new energy storage enterprises continue to maintain high growth rates?

According to the China Energy Report, the upcoming 13th National Energy Storage Summit will explore the development direction of the new energy storage sector. The conference aims to help enterprises identify further growth paths.

Looking ahead, the “Document No. 136” emphasizes ensuring that by June 1 of this year, the existing project inventory will focus on a “price difference calculation mechanism” to ensure that revenue does not decrease compared to the previous pricing mechanism, while gradually reducing the guarantee electricity quantity. Following this, the increase in project inventory will pass through market fluctuations to stabilize electricity prices.

To ensure that project revenue expectations are met, new energy enterprises are ramping up the pace of project construction to meet the “531” standard ahead of the grid connection.

In total, the comprehensive economic management framework established by the China Energy Report aims to meet the storage demand, focusing on current mainstream energy storage batteries, aggregation strategies, and production capabilities, while the market is experiencing a wave of “cost reduction.” The current supply of products under the condition of fulfilling demand is expected to increase significantly by May.

As of now, the energy storage market is expected to face challenges with the continuous high-speed development, even as market conditions remain uncertain. However, overall growth is projected as the development model shifts towards mainstream business operations.

“The big shift in technology development focuses on reducing costs,” with recent trends indicating that energy storage systems are increasingly being developed to meet high-capacity needs. The market is expected to experience substantial growth as the demand for energy storage escalates.

In 2030, new energy storage capacity is forecasted to reach 236.1 GWh, a year-on-year increase of 14.9 GWh. By 2035, capacity is expected to reach 291.2 GWh, up by 22.7 GWh from the previous year.

As the energy storage market continues to evolve, significant advancements are being made in energy storage technology, with a focus on improving efficiency and sustainability. The integration of AI and advanced algorithms is expected to drive further innovation in energy storage solutions.

According to the 2025 Energy Storage White Paper, the initial accuracy of AI-based battery management systems (BMS) has reached over 95%, with an extended lifespan of 10-15%.

In summary, the new energy storage sector is poised to achieve significant advancements through the integration of AI and energy management technologies, ensuring a robust and efficient market moving forward.