User-Side Energy Storage Project Analysis for August: Capacity Doubles!

Published on September 29, 2025

The China Energy Storage Alliance (CNESA) consistently adheres to rigorous and timely information collection standards, continuously tracking developments in energy storage projects. With a wealth of solid data and in-depth professional insights accumulated over the years, the alliance regularly publishes objective analyses of the energy storage market to aid industry peers in making informed market decisions.

Since June 2025, the monthly analysis of energy storage projects has been divided into two sections: “Source Network Side Market” and “User Side Market,” highlighting the distinct characteristics of these two sectors. This report focuses on the user-side market for August.

The analysis for the source network side storage market in August has been published. For details, click here: August New Energy Storage Installation: 2.9GW/7.97GWh, Source Side Storage Sees Year-on-Year Growth of 285%/354%.

August User-Side Energy Storage Project Overview

According to incomplete statistics from the CNESA DataLink Global Energy Storage Database, in August 2025, the newly operational energy storage projects in China had a total installed capacity of 2.90GW/7.97GWh, representing a year-on-year increase of 30%/43%, and a month-on-month decrease of 11%/10%. Although the new installed capacity continued to decline in August, the rate of decrease was smaller compared to the same period last year.

Figure 1: New Installed Energy Storage Capacity in China from January to August 2025 (Data Source: CNESA DataLink Global Energy Storage Database)

August User-Side Market Analysis

In August, the newly installed capacity for user-side energy storage reached 408.3MW/894.3MWh, marking a year-on-year increase of 124%/137%, and a month-on-month rise of 66%/73%. The characteristics of new user-side energy storage projects are as follows:

1. Commercial and Industrial Storage Dominates; Long-Duration Storage Technology Accelerates Implementation

   In August, the user-side energy storage market was primarily led by commercial and industrial applications, which accounted for over 90% of the market share. New installations in commercial and industrial scenarios totaled 376.63MW/828.85MWh, reflecting a year-on-year growth of 115%/131%. All newly operational projects utilized electrochemical storage technology, with lithium iron phosphate battery technology making up 98.7% of the installed power capacity. Additionally, two vanadium flow battery projects and one solid lead-acid battery project were completed, with an average storage duration of 4.19 hours.

2. Regional Distribution: Guangdong Accounts for 35% of New Installations

   Regionally, the newly operational projects were primarily distributed across Guangdong, Sichuan, Jiangsu, Anhui, and Zhejiang provinces. In terms of project count, the East China region represented half of the new projects, holding the largest market share. Jiangsu accounted for over 20% of the total projects in the country, leading in project numbers. In terms of installed capacity, Guangdong had the highest new installations, making up 35% of the total nationwide, followed by Sichuan. In August, the Guangming District of Shenzhen, Guangdong, offered subsidies of up to 1 million yuan for new energy storage projects connected to virtual power plants, covering 20% of the actual investment in retrofitting.

Figure 2: Distribution of Newly Operational User-Side Energy Storage Projects in China in August 2025 (Data Source: CNESA DataLink Global Energy Storage Database)

From the perspective of peak-to-valley price differences, 21 provinces and municipalities recorded price differences exceeding 0.7 yuan/kWh, with 9 provinces surpassing 1 yuan. Guangdong had the largest peak-to-valley price difference, with some cities exceeding 1.0 yuan/kWh. Since 2025, areas including the Pearl River Delta and cities like Jiangmen and Huizhou have seen peak-to-valley price differences above 1.0 yuan/kWh. With the current electricity pricing policy, user-side energy storage can achieve around 600 charge and discharge cycles annually, indicating substantial potential for “price arbitrage,” which may become a key battleground for user-side storage.

However, most current user-side energy storage projects are constructed under a contract energy management model, requiring investors to share profits with industrial users. Consequently, the savings from energy costs must be settled with users. Yet, investors often face challenges in charging users for electricity due to issues of willingness and capability to pay.

Figure 3: Distribution of Peak-to-Valley Price Differences Across Regions in August 2025 (Data Source: Provincial Power Companies, CNESA Analysis)

Trends in Registered Projects

In terms of registered projects, the user-side market is experiencing low growth. Traditional user-side energy storage markets in Zhejiang, Guangdong, and Jiangsu are lacking growth momentum, with Jiangsu’s projects focusing on larger scales. In total, over 620 new registered user-side energy storage projects in Zhejiang, Guangdong, and Jiangsu saw a year-on-year decline of 32%. Project counts and energy scales in Zhejiang decreased by 38% and 34% respectively. In Guangdong, the number of registered projects remained stable compared to the previous year, with energy scales down by 6%. Jiangsu’s registered project count saw the largest decline at 50%, although the energy scale increased by 341%. Projects in Jiangsu are increasingly focusing on larger scales, with over 10% of new projects exceeding 100MW, significantly up from the previous year. The total capacity of projects over 100MW accounted for 40% of Jiangsu’s new registered project scale in August.

Figure 4: Monthly Distribution of New Energy Storage Registered Projects in Zhejiang, Guangdong, and Jiangsu (January to August 2025) (Data Source: CNESA DataLink Global Energy Storage Database)

The China Energy Storage Alliance is a 5A-rated social organization in China and the first non-profit international industry organization focused on the energy storage sector. The alliance is committed to promoting the healthy, orderly, and sustainable development of the energy storage industry by influencing government policy-making and advancing the application of energy storage technologies.