Rapid Growth of China’s New Energy Storage Industry in 2024

Energy Storage

In 2024, China’s new energy storage industry reached a milestone with more than 70 million kilowatts of total installed capacity. NES technologies, supplementing traditional pumped-storage methods, charge during periods of high wind or solar power generation or low electricity demand and discharge during peak demand, said officials from the National Energy Administration. This makes the facility instrumental in renewable energy development while considering peak demand in electricity supply and grid stabilization.

Notable Growth and Performance

By the end of 2024, the installed capacity of NES projects in China had amounted cumulatively to 73.76 million kilowatts, up more than 130% compared with 2023. The average energy storage time reached 2.3 hours, up about 0.2 hours from the previous year. This is a testament to the growing efficiency and capacity of the NES systems.

Geographical Distribution

The top regions with the most installed capacity for NES include Inner Mongolia, Xinjiang, Shandong, Jiangsu, and Ningxia; these provinces represent the major areas where energy storage takes place within the country. On a national level, it comprised North China at 30.1%, Northwest China at 25.4%, and Eastern China at 16.9% of the total capacity. This shows that NES has had strategic importance in the diversified energy landscape of the country.

Trends in Project Scale and Storage Duration

Large-scale projects have gradually become the main force in the NES industry. By the end of 2024, projects with a capacity of over 100,000 kilowatts accounted for 62.3% of the total, up about 10 percentage points compared to 2023. Medium-scale projects between 10,000 and 100,000 kilowatts took 32.8%, while those smaller than 10,000 kilowatts accounted for only 4.9%.

Regarding storage duration, projects with durations of four hours or more grew to 15.4% in 2024, an increase of around 3 percentage points from the previous year. Meanwhile, projects with durations between two and four hours dominated the industry at 71.2%, and those under two hours accounted for 13.4%.

Catalyst for Innovation and Economic Growth

Technologically, NES technologies are high-intensity and their industrial chains are very long. For that, the related industries have been upgraded quickly and technological innovation promoted to a great extent, and thus facilitated the economic development in large scale. In 2024, the investment in the NES industry reached almost 200 billion yuan, an important driving force for economic development.

Prospect and Strategy for the Future

In the future, the National Energy Administration will draw on the “15th Five-Year Plan” framework to outline a roadmap in detail: promoting technological innovation, perfecting market mechanisms, guiding industry development, and ensuring international cooperation. Support will also be given to Chinese enterprises to go out into the world.

In a nutshell, therefore, the NES industry in China in 2024 has provided not only remarkable growth but also laid quite a strong foundation for sustainable development. With increased innovation and appropriate strategic planning, the sector should be able to play a most important role within the global transition of energy.

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