As part of its evolving strategy, China has explicitly encouraged the involvement of private enterprises in the energy sector beyond the fields of export-oriented clean energy manufacturing into areas of more strategic domestic importance, such as nuclear power, new energy storage and even into upstream oil and gas and mining.
The majority of China''s storage capacity comes from large-scale storage projects, such as hydropower with reservoirs on the Yangtze River and gigawatt-level battery energy storage systems in Inner Mongolia.
In light of energy security concerns, especially after fluctuations in energy prices globally, China is focusing on enhancing its energy security, driving the growth of the China Energy Storage Market.
The answer lies in its rapidly evolving energy storage field. Whether you''re an investor eyeing the next big market, an engineer tracking lithium-ion advancements, or simply curious about clean energy – this analysis serves up fresh insights with a side of "aha!"
According to International Energy Agency predictions, by 2050, China''''s installed energy storage capacity will be above 200GW, approximately 10% to 15% of the country''''s total installed power capacity.
China now holds a commanding 38% share of the global energy storage market, fueled by a surge in new capacity and groundbreaking technological progress, said the China Energy Storage Alliance (CNESA).
The country is installing solar, building EVs, and investing across energy at a rapid clip. China is the dominant force in next-generation energy technologies today. It''s pouring hundreds of
China now holds a commanding 38 percent share of the global energy storage market, fueled by a surge in new capacity and groundbreaking technological advancements, said the China Energy Storage Alliance.
Although coal accounted for the largest share of primary energy production, it grew the least year on year, at 1.3%. Coal still accounted for most (62%) of the energy consumed in China (Table 1).3 In 2024, non-fossil fuels accounted for 56% of total installed electricity generation capacity.
China currently leads the world in cumulative energy storage capacity, establishing itself as a frontrunner in the global energy transition. Factors contributing to this growth include government policies, technological advancements, and a heightened focus on environmental sustainability.
In light of energy security concerns, especially after fluctuations in energy prices globally, China is focusing on enhancing its energy security, driving the growth of the China Energy Storage Market.
The majority of China''s storage capacity comes from large-scale storage projects, such as hydropower with reservoirs on the Yangtze River and gigawatt-level battery energy storage systems in Inner Mongolia.
As part of its evolving strategy, China has explicitly encouraged the involvement of private enterprises in the energy sector beyond the fields of export-oriented clean energy manufacturing into areas of more strategic domestic importance,
“China’s New Energy Storage Capacity Surges to 74 GW/168 Gwh in 2024, up 130% Yoy.” PV Magazine International, January 23, 2025. 54 Myllyvirta, Lauri. “Analysis: Clean Energy Contributed a Record 10% of China’s GDP in 2024.” Centre for Research on Energy and Clean Air, February 19, 2025.
The majority of China’s storage capacity comes from large-scale storage projects, such as hydropower with reservoirs on the Yangtze River and gigawatt-level battery energy storage systems in Inner Mongolia. Arial view of the Three Gorges Dam in Hubei province, China. Credit: Sipa US / Alamy Stock Photo
In this Q&A, Carbon Brief explores how China has been driving the sector forwards and how it fits into the nation’s wider energy transition. China is currently the world’s largest market for energy storage, followed by the US and Europe, according to BloombergNEF.
Although coal accounted for the largest share of primary energy production, it grew the least year on year, at 1.3%. Coal still accounted for most (62%) of the energy consumed in China (Table 1).3 In 2024, non-fossil fuels accounted for 56% of total installed electricity generation capacity.
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.
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).
