Rising Demand for Integrated AC/DC Energy Storage Systems Takes Global Market by Storm

In the field of energy storage, the integrated AC/DC energy storage system is rapidly becoming one of the most sought-after technological directions. Following the introduction of this technology by Sungrow Power Supply in 2023, a range of companies, including Haibo Innovation, Kelun Electronics, Ronghe Yuan Storage, Nandu Power, Envision Energy, Zhongtian Storage, Lishen Battery, Siyuan Qingen, and Huichuan Technology, have been intensifying their product releases. Moreover, international manufacturers like Fluence and Nidec have also started making significant strides in this area in the first half of 2025.

Traditional energy storage systems typically have separate DC and AC components, resulting in multiple energy conversion levels, large footprints, and high efficiency losses. In contrast, the integrated AC/DC energy storage system reconfigures its architecture by combining battery clusters, PCS (Power Conversion Systems), and BMS (Battery Management Systems) into a single cabinet. This leads to a streamlined design, simplified installation, and enhanced safety. Generally, traditional DC cables are long and exposed, posing significant risk. The integrated AC/DC approach eliminates the need for PCS, LC (Load Controllers), and other equipment, saving up to 29% in space—meaning a 100 MWh energy storage station occupies only 2000 square meters.

The integrated AC/DC system also simplifies the installation process by removing four key steps: on-site PCS installation, DC wiring, communication testing, and charge/discharge testing. Beyond the reduced footprint and ease of installation, the most notable improvement is in safety. Xu Qingqing, Senior Vice President of Sungrow Power Group and President of its Energy Storage Division, emphasized, “Many serious issues in energy storage systems occur on the DC side, and faults on the DC side are often more severe and destructive than those on the AC side, including risks like arcing, DC short circuits, PCS failures, and lightning strikes.” He pointed out that energy storage distribution cabinets involve thousands of wires, and most companies rely on workers to connect these wires on-site, which can lead to confusion and errors due to the complex color coding. To mitigate these risks, the PowerTitan 2.0 features a design that keeps DC cables within the cabinet, using standardized lengths and designs while being housed in a fully liquid-cooled environment, thus avoiding various safety hazards.

In summary, the integrated AC/DC system not only eliminates significant safety risks associated with DC arcing but also simplifies on-site safety challenges, reduces land usage, and enhances overall system performance with intelligent liquid cooling. From a product evolution perspective, the integrated AC/DC system has become a crucial selling point for energy storage products. As the industry shifts from a focus on pricing to a focus on energy costs, the integrated AC/DC energy storage systems are gaining popularity among manufacturers, marking a significant evolutionary direction for energy storage products.

In October 2023, Sungrow Power Supply was the first in the industry to launch the integrated AC/DC PowerTitan 2.0. Following this, Envision Energy, Kelun Electronics, Lishen Battery, and Ronghe Yuan Storage successively adopted this technological route in 2024. The integrated AC/DC 5MWh+ system has already emerged as a development trend for energy storage systems in 2024. In April 2024, Envision Energy unveiled the world’s first integrated AC/DC 5.6MWh energy storage system. In June, Lishen Battery released a new generation of 20-foot, 5MWh integrated AC/DC liquid-cooled containers. By September, Ronghe Yuan Storage announced its new generation integrated AC/DC liquid-cooled energy storage system container, named “Ronghe · Xuanwu.” Haibo Innovation also publicly introduced its integrated AC/DC energy storage technology route in September.

Since 2025, the integrated AC/DC technology has been gaining traction globally. Not only are domestic manufacturers competing, but international firms are also eager to establish their presence, further highlighting the market’s recognition of this technological route. On February 13, 2025, U.S. energy storage system integrator Fluence Energy announced the launch of its new high-energy-density Smartstack™ energy storage system. This integrated AC/DC storage system features a voltage level of 1500V and incorporates 314Ah storage cells, achieving a system capacity of 7.5MWh, with an energy density approximately 30% higher than current market offerings.

In April, Nandu Power, Zhongtian Technology, and Siyuan Qingen followed suit with similar technology. Nandu Power’s Center L Ultra 6.25MWh integrated AC/DC liquid-cooled energy storage system features self-developed 783Ah large-capacity storage batteries, suitable for energy storage scenarios of 2 to 8 hours. This system incorporates various core technologies to significantly enhance energy efficiency, safety, and intelligent management, with global deliveries expected to commence in the fourth quarter of 2025. Siyuan Qingen introduced the first “cluster-controlled integrated AC/DC” design, combining supercapacitors, hybrid supercapacitors, and lithium batteries, achieving compatibility with over 600Ah large cells and multi-medium hybrid storage, supporting millisecond-level responses and frequent charging and discharging.

Zhongtian Technology’s ENERGRID NA7 liquid-cooled energy storage system achieved a single unit capacity of 7.58MWh, with a DC voltage of 2000V and an integrated AC/DC design. Its newly developed 3S fusion PCS supports high-voltage DC access and seamless AC grid interconnection, integrating a bi-directional DC/AC converter to reduce energy conversion levels and improve conversion efficiency to over 99%. The embedded EMS system enables millisecond-level mode switching with a transition time of less than 20ms. In May, Haibo Innovation launched a 10-foot Hyperblock M-AC/DC module, with a single module capacity of 3.2MWh, weighing 24 tons and compatible with multi-modal transport. It can also be expanded to a 40-foot version with a capacity of up to 12.8MWh, making it the smallest integrated AC/DC system available.

Huichuan Technology has stated in its annual report that it will focus on building comprehensive energy solutions for domestic industrial and commercial sectors, emphasizing breakthroughs in overseas energy business. This includes plans to introduce high-voltage integrated AC/DC energy storage systems and low-voltage energy storage cabinets in its V3.0 version for large industrial applications. In May, Japanese manufacturer Nidec released three models of its ACBOX series integrated AC/DC energy storage systems, including 8.47MWh systems in 30-foot high cabinets weighing 70 tons.

Industry analysts believe that the rapid growth of integrated AC/DC technology stems from leading companies re-establishing industry standards and collaborative ecosystems, shifting the focus from capacity competition to quality competition. The introduction of large-capacity integrated AC/DC systems by international firms like Nidec and Fluence signifies a growing market recognition of the safety and installation simplification advantages provided by this technology. The integrated AC/DC energy storage system is experiencing explosive growth globally.

The swift adoption of integrated AC/DC technology among numerous new products can be attributed not only to the leadership of Sungrow Power Supply but also to the system’s accelerated entry into mainstream global markets, gaining favor with owners. Statistics indicate that in 2024, Sungrow Power Supply’s domestic and international core orders will deploy the integrated AC/DC PowerTitan 2.0 system. Numerous integrated AC/DC projects are moving toward grid connection in the domestic market. In the first half of 2024, the “Huaneng Longteng Special Steel 20MW/40MWh user-side energy storage project,” invested by China Huaneng Group and constructed by Shiyi Technology, achieved full capacity grid-connected generation with eight 2.5MW/5MWh liquid-cooled energy storage systems from Sungrow Power Supply. This facility is the first energy storage station in China to adopt an integrated AC/DC design, with system efficiency exceeding traditional storage by 2%-3%.

In November, the first vanadium-lithium combined energy storage station in Hebei Province, and the first in North China to use a globally leading AC storage (integrated AC/DC) structure, officially commenced operation. Developed by Hebei Yanzhao Xingtai Energy Storage Technology Co., Ltd., this project marks a significant breakthrough in new energy storage in Hebei Province and serves as a benchmark for independent energy storage. It utilized 21 units of Sungrow Power Supply’s PowerTitan 2.0 liquid-cooled energy storage systems, completing the transition from debugging to grid connection in just 30 days.

In December, the second phase of the Taiyang Independent Energy Storage Station in Zaozhuang City, Shandong Province, successfully connected to the grid. It directly receives grid dispatch and participates in electricity spot trading, enhancing electricity supply stability while demonstrating strong economic viability, establishing a profitable benchmark for large energy storage stations. The Taiyang Energy Storage Station has been built to a scale of 200MW/400MWh, with phase one using the PowerTitan 1.0 liquid-cooled energy storage system and phase two continuing with the PowerTitan 2.0, becoming the first independent energy storage project in China to adopt an AC storage solution.

On the international front, the Sungrow Power Supply PowerTitan 2.0 integrated AC/DC energy storage system has also entered mainstream markets in the Middle East, Europe, and Australia. In May 2024, Sungrow Power Supply signed a supply agreement for a 116.5MW/230MWh battery energy storage system (BESS) project with Nofar Energy in Saxony-Anhalt, Germany, marking the first use of PowerTitan 2.0 in Germany. In July 2024, Sungrow Power Supply collaborated with Saudi ALGIHAZ on a capacity project known at the time as the world’s largest energy storage project, with three sites located in Najran, Madaya, and Khamis Mushait, set to begin deliveries in 2024 and achieve full capacity grid connection in 2025, significantly improving the stability and reliability of the Saudi electricity grid.

Due to the project’s substantial scale, tight delivery timeline, complex scheduling management, and high operational requirements, Sungrow Power Supply plans to deploy more than 1,500 units of the PowerTitan 2.0 integrated AC/DC energy storage system solution. In August, U.S. renewable energy company Spearmint Energy announced it would engage Sungrow Power Supply to provide energy storage solutions for its over 1GWh battery project in Texas, utilizing the integrated AC/DC PowerTitan 2.0 system. In September, Sungrow Power Supply signed a storage supply agreement with Penso Power and BW BW ESS, providing 1.4GWh of the PowerTitan 2.0 integrated AC/DC energy storage system for the Hams Hall storage project in central England. By late November, Sungrow Power Supply announced a 4.4 GWh storage project agreement with the UK’s Fidra Energy, marking the largest energy storage cooperation agreement in Europe. This project involves supplying the Thorpe Marsh and WestBurton C independent energy storage stations, with installed capacities of 3.3 GWh and 1.1 GWh, respectively. The European project will utilize 880 units of the Sungrow Power Supply PowerTitan 2.0 integrated AC/DC energy storage systems, which will connect to the highest voltage level grid in the UK, participating in local ancillary services and electricity market trading.

According to incomplete statistics from industry analysts, the overseas orders for the PowerTitan 2.0 integrated AC/DC energy storage system disclosed by Sungrow Power Supply in 2024 have approached 15GWh. By December 2024, Envision Energy’s integrated AC/DC 5.0/5.6MWh energy storage system series officially rolled off the production line at its Jiangyin factory. This series includes standard 20-foot containers of 5MWh and 5.6MWh models, with the latter being the largest capacity integrated AC/DC energy storage system globally. The rollout of the Envision 5.0/5.6MWh storage products signifies the company’s readiness for large-scale deliveries.

In December, Envision Energy also signed a supply contract with the EDF Group in France to provide battery energy storage systems for three independent energy storage projects headed by EDF in South Africa, with a total installed capacity of 257MW/1028MWh, making Envision Energy the first energy storage system integrator in South Africa to secure GWh-level orders. Envision will supply a full suite of integrated AC/DC energy storage equipment, station SCADA, and EMS systems, utilizing its high-safety, high-performance 315Ah specialized energy storage cells. Furthermore, Envision will provide full lifecycle operation and maintenance services for 15 years.

By the end of 2024, Ronghe Yuan Storage had operated over 346 energy storage stations across 26 provinces in China, accumulating operational energy storage assets of 5.5GWh. In September 2024, Ronghe Yuan Storage released its new generation integrated AC/DC liquid-cooled energy storage system container, named “Ronghe · Xuanwu.” This system is designed for all energy storage scenarios with a 5MWh capacity, adopting an integrated AC/DC design, allowing for cluster management and eliminating inter-cluster circulation. Following the product launch, Ronghe Yuan Storage secured a 500MWh energy storage order from Romania, won a bid for a 1GWh string-type system procurement from the State Power Investment Corporation, and signed a 400MWh independent energy storage project in Jiujiang, Jiangxi Province. Although Ronghe Yuan Storage has not explicitly disclosed whether these projects will utilize the integrated AC/DC “Ronghe · Xuanwu” energy storage system, the product’s layout suggests it is a key offering in the large storage sector.

Looking ahead, with global energy storage manufacturers such as Haibo Innovation, Kelun Electronics, Ronghe Yuan Storage, Nandu Power, Envision Energy, Zhongtian Storage, Lishen Battery, Siyuan Qingen, Huichuan Technology, Fluence, and Nidec further driving the adoption of integrated AC/DC energy storage systems, it can be anticipated that this technology will become a crucial component in numerous energy storage projects, emerging as a “hot product” in the market by 2025.