The 13th International Energy Storage Summit and Exhibition: Navigating Policy Benefits and Market Challenges in the Energy Storage Industry

The 13th International Energy Storage Summit and Exhibition (ESIE2025) commenced in Beijing on April 10. At this event, numerous participating companies showcased their latest achievements and innovative applications in the field of energy storage technology. The exhibition featured advanced battery products, efficient flywheel energy storage technologies, intelligent energy management systems, and diverse energy storage application scenarios, all highlighting the vibrant growth and immense potential of the energy storage industry.

According to Zhou Jianjie, Chief Technology Expert of the Energy Storage Division at Sungrow Power Supply Co., Ltd., “We released the BM2T Battery Management Technology White Paper at ESIE2025, introducing a new approach aimed at breaking away from traditional and inefficient battery management techniques.” He emphasized that batteries are not synonymous with energy storage systems; understanding, managing, and utilizing batteries effectively is essential for ensuring safer, more efficient, and longer-lasting energy storage solutions.

Driven by the dual carbon goals, China’s energy storage industry is experiencing rapid growth, as energy storage technology contributes significantly to the stability of new power systems and plays a crucial role in the country’s energy transition and green development.

Intensive Policy Initiatives

The construction of new power systems is advancing vigorously, but the large-scale integration of renewable energy sources like solar and wind power, along with the continuous growth in electricity demand, poses unprecedented challenges to the stability and reliability of traditional power systems. At this critical juncture, energy storage technology is emerging as a key support force, leveraging its advantages and rapid advancements to address various issues within the power system.

As Chen Zhiyuan, Head of the Solutions Department at Xianweiguang Energy Technology Co., Ltd., explained, “During times of electricity surplus, energy storage technology acts like a diligent bee, storing excess energy. Conversely, during electricity shortages, it can quickly release energy to supplement the power system, effectively balancing supply and demand and significantly enhancing the stability and reliability of the power system.” At the ESIE2025 “Energy Storage +” solutions pavilion, he highlighted the increasingly vital role of energy storage technology in promoting the utilization of renewable energy and reducing instances of energy wastage, such as curtailment of wind and solar energy. Energy storage also provides ancillary services like frequency and voltage regulation, improving the operational efficiency of the grid.

Recent years have seen significant progress in energy storage technology, with commercial applications gradually maturing. This year has witnessed a surge in policy initiatives. In February, the Ministry of Industry and Information Technology and seven other departments jointly issued the Action Plan for the High-Quality Development of the New Energy Storage Manufacturing Industry, outlining the future direction for China’s new energy storage manufacturing sector.

In January, a notification from the National Development and Reform Commission and the National Energy Administration clarified that the provision of energy storage should not be a prerequisite for the approval, grid connection, or online access of new energy projects. This announcement effectively ended the controversial policy of “mandatory energy storage for new energy projects.”

At the exhibition, Han Jingtai, Vice President of Products at Guoneng Rixin Technology Co., Ltd., noted that the discontinuation of mandatory energy storage has broken the previously tied relationship between energy storage configuration and the approval of new energy projects, providing greater flexibility for their development. This policy adjustment allows new energy projects to autonomously decide whether to incorporate energy storage facilities based on their needs and circumstances, thereby lowering investment costs and enhancing economic viability. Guided by these policies, the new energy storage manufacturing industry is set to accelerate technological innovation and industrial upgrades, improving product performance and reliability while reducing production costs and enhancing market competitiveness.

According to incomplete statistics from the Energy Storage Application Branch of the China Chemical and Physical Power Industry Association (CESA), a total of 58 energy storage-related policies were announced in February 2025, covering various sectors such as finance, electricity market participation, new energy storage configuration, and charging infrastructure.

Despite the booming landscape of new energy storage installations, challenges remain. Energy storage companies face rapid capacity expansion, intense price competition, and profitability issues. The industry requires further self-regulation and comprehensive planning to navigate the innovation and commercialization of energy storage technologies.

Si Peiyuan, Director of the Membership Department at the China Electric Power Equipment Management Association, stated, “To advance innovation and commercialization in energy storage, companies must enhance their management practices, manage capacity expansion judiciously, and avoid destructive competition. While China has made some advancements in energy storage technology, key performance metrics such as energy density, cycle life, and safety still require improvement. Commercially, the demand in the energy storage market has not yet been fully realized, necessitating further exploration and innovation.

Intensifying Market Competition

Recent years have witnessed significant changes in China’s energy supply and demand landscape, along with profound adjustments in the power generation mix. The share of thermal power generation, once dominant, has steadily declined, while the total installed capacity of renewable energy has rapidly increased, reaching parity with thermal power in a competitive landscape. Against this backdrop of energy transition, the energy storage sector faces unprecedented opportunities and challenges.

Insights from the financial reports of leading energy storage and battery companies reveal the dynamics of industry development. Top firms are actively investing in energy storage technology, increasing research and development expenditures to achieve breakthroughs in critical metrics such as battery energy density, charge and discharge efficiency, and cycle life. Concurrently, the market share in the energy storage sector is expanding, attracting numerous new players.

It is noteworthy that while the installed capacity of energy storage has reached new heights, many energy storage stations are not being fully utilized. Data from the China Electricity Council’s 2024 Annual Statistics on Electrochemical Energy Storage Stations indicate that while the overall average utilization index of new energy storage reached 32% in 2024, it still falls significantly short of the 52% utilization rate of grid-side energy storage, highlighting the need for improved utilization of new energy storage stations.

Moreover, competition in the energy storage industry is heating up. With the ongoing decline in lithium carbonate prices, the prices of energy storage cells are also dropping. To compete for market share, some leading companies are pushing for extreme cost reductions in lithium battery production and further price cuts, while refining the management of non-production materials to cope with fierce market competition.

In response to these challenges, companies participating in ESIE2025 presented various solutions aimed at navigating this competitive landscape. Zhou Jianjie emphasized the need for the energy storage industry to quickly reverse the trend of chaotic price competition, advocating for a focus on safety, efficiency, and grid friendliness as core values. Sungrow is collaborating with relevant industry organizations to standardize processes such as product standards, testing protocols, project implementation, and grid connection acceptance.

Liu Zhi, Deputy Chief Engineer of Huari Wind Power Technology Group Co., Ltd., expressed to reporters that the energy storage industry should actively respond to policy changes and fully support the entry of renewable energy into the power market. Leveraging years of experience in the renewable energy sector, the company is deeply exploring technology and product development in integrated wind-storage systems to optimize coordinated scheduling and improve trading profits. As the market transitions to self-managed energy storage, the company is actively exploring new energy storage battery technologies to better align with grid demands and reduce energy storage costs.

Lu Li, Senior Director of Strategic Marketing at Shenzhen Yingfeiyuan Technology Co., Ltd., highlighted that the company invests over 10% of its sales revenue in research and development annually, focusing on core technologies in digital energy and continuously deepening its core technology system for energy conversion.

During the series of exhibitions and forums at ESIE2025, many industry experts expressed the need to deepen the marketization of energy storage. Strategies such as integrating hardware and software, increasing research investments, and widening the price fluctuation range in the spot market can help uncover the profit potential of energy storage projects and enhance the core competitive advantages of companies in the era of self-managed energy storage.