China’s Energy Storage Capacity Reaches Half of Global Total

China’s cumulative installed capacity of new energy storage has reached approximately 50% of the global total, according to the “China New Energy Storage Development Report (2026)” released by the National Energy Administration (NEA) on July 30. The milestone cements China’s position as the world’s undisputed leader in energy storage deployment, a critical component of the global clean energy transition.

A Decade of Exponential Growth

As of the end of 2025, China’s cumulative installed new energy storage capacity reached 136 million kW / 351 million kWh, representing a year-on-year increase of 84.3% and a more than 40-fold expansion compared to the end of the 13th Five-Year Plan period in 2020, as reported by People’s Daily. Globally, cumulative new energy storage capacity reached approximately 280 million kW by end-2025, up about 67% year-on-year.

In 2025, China’s new energy storage capacity surpassed 100 million kW for the first time, exceeding twice the installed capacity of pumped hydro storage and becoming a critical support for the new power system. Xu Jilin, Deputy Director of the Energy Conservation and Technology Equipment Department at the NEA, noted that during the 14th Five-Year Plan period, “China’s new energy storage industry has transitioned from the early stage of commercial application to a new phase of scaled development, laying a solid foundation for the multi-dimensional value realization and high-quality development of the industry,” according to the NEA press conference.

Technology and Regional Distribution

Lithium-ion battery storage continues to dominate China’s energy storage landscape, with 131 million kW / 331 million kWh installed in 2025, accounting for 96.1% of new energy storage capacity. Long-duration energy storage technologies, including compressed air, flow batteries, and other emerging routes, are accelerating in industrialization, according to Science and Technology Daily.

Regionally, North China and Northwest China lead the country, with installed capacities of 44.131 million kW and 38.382 million kW respectively, together accounting for 60.7% of national capacity. The concentration reflects the regions’ abundant renewable energy resources and growing grid integration needs.

Improving Utilization and Grid Integration

Beyond raw capacity, utilization metrics show meaningful improvement. In 2025, the average utilization hours of new energy storage projects reached 1,195 hours, up 31.2% from 911 hours at end-2024. Average equivalent charge-discharge cycles reached 256 times, up 15.8% from 221 times, as detailed in the China Energy News Network report.

New energy storage absorbed over 30 billion kWh of renewable energy in 2025, improving renewable energy utilization by approximately 2 percentage points. During peak summer demand, more than 20 provincial power grids set record loads, with new energy storage playing a critical role—provinces like Jiangsu, Shandong, and Yunnan achieved over 95% simultaneous call rates, demonstrating the technology’s reliability when it matters most.

Global Context and Market Position

China’s dominance extends beyond its borders. In 2025, global new energy storage additions reached 112 GW / 307 GWh, with China accounting for approximately 61.1 GW or 54% of global additions. The country’s energy storage full industry chain output value has exceeded 1 trillion RMB, reflecting a complete domestic supply chain from materials to cells to system integration.

The International Energy Agency’s Global Energy Review 2026 confirms this trend globally: 108 GW of new battery storage capacity was deployed worldwide in 2025, up 40% from 2024, with installed capacity now eleven times higher than in 2021. China accounted for around 60% of global battery additions, followed by the United States and Europe. Battery storage costs have fallen by more than 90% between 2010 and 2025, making storage increasingly cost-competitive.

Policy Support and Future Outlook

“Developing new energy storage” has been written into China’s Government Work Report for three consecutive years, and new energy storage was officially included in the country’s six national emerging pillar industries. The NEA has also established a capacity electricity pricing mechanism for grid-side independent new energy storage at the national policy level for the first time, providing a clearer revenue model for storage operators.

As of end-June 2026, China’s operational new energy storage capacity reached 153 million kW / 396 million kWh, up 61% year-on-year, according to the NEA’s July 30 press conference. The first half of 2026 also saw continued improvement in utilization, with the State Grid Corporation operating area recording 573 equivalent utilization hours and the China Southern Power Grid area reaching 626 hours.

Looking ahead to the 15th Five-Year Plan period, Xu Jilin stated that the NEA will “anchor on carbon peak goals, closely follow the requirements of building an energy powerhouse, adhere to demand-led, innovation-driven, market-oriented, and standardized management principles,” and actively promote China’s new energy storage technology innovation and industrial development to “rank among the world’s leading positions.”

What to Watch

As China’s energy storage sector transitions from rapid scale-up to high-quality development, key indicators to monitor include the industrialization of long-duration storage technologies, the effectiveness of market mechanisms in sustaining project economics, and the continued integration of storage into grid operations. With the 15th Five-Year Plan period now underway, the sector’s trajectory will be shaped by how effectively policy, technology, and market forces align to support the country’s broader energy transition goals.