Capacity Almost Doubles Year-on-Year
China's installed capacity of new-type energy storage — including lithium-ion batteries, compressed air, flow batteries and other non-pumped-hydro technologies — reached 76.77 gigawatts by the end of June 2026, surging 61% year-on-year, according to data published through the National Energy Administration. The figures underscore the pace at which China is building out the grid flexibility infrastructure needed to absorb rising shares of intermittent renewable generation.
Why Energy Storage Matters
As China's installed solar and wind capacity has expanded — reaching a combined total well above 1,000 GW — the grid faces increasing challenges balancing supply and demand in real time. New-type energy storage provides the dispatchable capacity needed to firm up variable renewables, store off-peak electricity for peak-demand hours, and provide ancillary services such as frequency regulation.
Sub-Sector Breakdown
- Lithium-ion batteries: The dominant technology, accounting for the majority of new installations in 2025–2026
- Grid-scale storage: Central and state-owned enterprises are building large battery systems adjacent to major wind and solar farms in Inner Mongolia, Xinjiang, Gansu and Qinghai
- Distributed and community storage: Growing uptake in Jiangsu, Zhejiang and Guangdong provinces, where demand-side management and peak shaving are priorities
Policy Push
The NDRC has designated energy storage as a key component of China's 14th Five-Year Plan for the energy sector and a critical element of the 'new infrastructure' strategy. Provincial governments have mandated storage capacity requirements for new renewable projects — typically requiring 5–15% of installed solar or wind capacity to be paired with storage. The 61% growth rate reflects these regulatory tailwinds.
Investment Outlook
Industry analysts estimate that China will need to install an additional 100–150 GW of new-type storage capacity by 2030 to meet its carbon peaking and neutrality targets. That implies a sustained annual installation rate of 30–40 GW per year — a significant opportunity for battery manufacturers, power electronics firms and project developers.