Chinese internet companies invest heavily in energy storage

Can China scale up energy storage investments?

This study explores the challenges and opportunities of China’s domestic and international roles in scaling up energy storage investments. China aims to increase its share of primary energy from renewable energy sources from 16.6% in 2021 to 25% by 2030, as outlined in the nationally determined contribution .

Who invests in battery energy storage in China?

The two power grid companies in China are the investors we refer to. They have become the most significant spenders on battery energy storage (BES) since last year, and the reason for an over 300% growth of the sector.

What is the new type energy storage industry in China?

The remaining half is comprised primarily of batteries and emerging technologies, such as compressed air, flywheel, as well as thermal energy. These technologies, known as the “ new type ” energy storage in China, have seen rapid growth in recent years. Lithium-ion batteries dominate the “new type” sector.

Which energy storage technology is most widely used in China?

Of these, 39.8 GW is used in pumped-storage hydropower (PSH), which is the most widely used storage technology. The share of novel energy storage technologies represents only 12.5% of the total installed capacity in China, where electrochemical storage is the most technically viable technology, followed by fast-growing compressed-air storage.

How can energy storage technologies address China's flexibility challenge in the power grid?

The large-scale development of energy storage technologies will address China’s flexibility challenge in the power grid, enabling the high penetration of renewable sources. This article intends to fill the existing research gap in energy storage technologies through the lens of policy and finance.

How does China promote battery storage?

To promote battery storage, China has implemented a number of policies, most notably the gradual rollout since 2017 of the “mandatory allocation of energy storage” policy (强制配储政策), which is also known as the “ new energy plus storage ” model (新能源+储能).