PowerChina receives bids for 16 GWh BESS tender with average price of $66.3/kWh

In what is described as the largest energy storage procurement in China’s history, Power Construction Corporation of China (PowerChina) is targeting an unprecedented cumulative storage capacity of 16 GWh. The bids were opened on December 4.

The tender attracted 76 bidders, with quoted prices ranging from $60.5/kWh to $82/kWh, averaging $66.3/kWh. Notably, 60 of the bids were below $68.4/kWh, signaling competitive pricing trends in China’s energy storage market.

According to the previously announced plan by PowerChina, this tender aims to select qualified suppliers for energy storage system equipment for 2025-2026. After the selection, a framework agreement will be signed. In the future, as specific projects are implemented and procurement needs clarified, the shortlisted suppliers will be directly invited to engage in secondary competition, either through negotiated procurement or competitive bidding, to determine the final supplier for the required energy storage system equipment. Once finalized, procurement contracts will be signed, eliminating the need for separate tenders.

This procurement covers a comprehensive range of services beyond the delivery of storage equipment, including system design, installation guidance, commissioning, 20-year maintenance, and integrated safety features.

The tender specifies that lithium iron phosphate (LFP) battery cells with a nominal capacity of more than 280Ah must be used, achieving an overall system efficiency of more than 85%. Suppliers are required to provide a five-year warranty for the entire storage system and demonstrate safety measures, including multi-tiered protection mechanisms, fast-response communication between battery management (BMS) and power conversion systems (PCS), and robust safety protocols against fire risks.

Suppliers must also meet stringent qualifications, including having at least one of four core technologies—battery cells, PCS, energy management systems (EMS), or BMS—developed in-house.

This storage initiative is part of PowerChina’s broader equipment procurement plan announced on November 13, which also includes 51 GW of solar modules, 51 GW of inverters, 25 GW of wind turbines, and 15,240 prefabricated 35kV substations. The large-scale centralized procurement aims to secure resources for PowerChina’s renewable energy projects and align with China’s green energy transition goals.

Analysts regard this tender as a landmark for China’s energy storage market, setting benchmarks for innovation and cost efficiency. It highlights the critical role of storage systems in enabling grid flexibility and renewable energy integration, supporting China’s ambition to achieve carbon neutrality by 2060.