CNESA: China’s energy storage fleet hits 103.3 GW in H1 2024

On August 25, CNESA held its 2024 Mid-Year China Energy Storage Data Release Conference in Suzhou. During the event, Chen Haisheng, CNESA chairman and head of the energy storage committee at the China Energy Research Society, presented a report titled “Current Status and Trends in the Novel Energy Storage Industry.” The report revealed key data on China’s energy storage sector for the first half of 2024.

According to the report, China’s fleet of operational energy storage projects reached 103.3 GW by the end of June. This reflects a 47% year-on-year jump and a 20% increase since the end of 2023.

The cumulative installed capacity of novel energy storage (electrical energy storage systems, excluding pumped storage) surpassed 100 GWh for the first time, reaching 48.18 GW/107.86 GWh, with power output and storage capacity growing by 129% and 142% year-on-year, respectively.

The newly commissioned novel energy storage capacity for the first half of 2024 stood at 13.67 GW/33.41 GWh, marking a 71% year-on-year increase in both power output and storage capacities. The number of novel energy storage projects (including those planned, under construction, and operational) exceeded 1,000, representing a 67% increase compared to the same period last year.

The bidding volume in the sector continued its rapid growth trajectory, with the bidding quantities for battery systems, other energy storage systems, and EPC services surpassing last year’s levels by 86%, 29%, and 124%, respectively. Monthly bidding volumes consistently outpaced those of the previous year, with an average monthly total exceeding 10 GWh.

In the first half of 2024, China added 74 GWh of new energy storage battery production capacity (including planned, under construction, and completed projects). However, the capacity of newly completed projects fell to 9 GWh, a 31% year-on-year decline, with all new capacity stemming from lithium battery projects. Overall, investment in production capacity has returned to a more moderate level, with several lithium battery, materials, and electrolyte projects either delayed or canceled.

By the end of June 2024, approximately 2,160 policy documents directly or indirectly related to energy storage have been issued by various levels of government, with Guangdong, Zhejiang, Shandong, and Anhui provinces leading in policy support.

In the first half of 2024, 425 such policies were released nationwide, 1.6 times the number issued during the same period last year. A total of 26 provinces and cities have set novel energy storage installation targets for the end of 2025, with a combined target of 86.6 GW.

Looking ahead at the final two years of the 14th Five-Year Plan period (2024-2025), the report predicts that newly installed energy storage capacity will continue to grow rapidly, likely surpassing current provincial targets.

During the 15th Five-Year Plan period (2026-2030), the sector is expected to enter a phase of steady growth. In a conservative scenario, the cumulative installed capacity of novel energy storage is projected to reach 168.7 GW by 2028, with a compound annual growth rate (CAGR) of 37.4% from 2024 to 2028. By 2030, this figure is expected to reach 221.2 GW, with a CAGR of 30.4% from 2024 to 2030, and an average annual increase in capacity of 26.6 GW. In an ideal scenario, the cumulative installed capacity could reach 220.9 GW by 2028, with a CAGR of 45.0%, and 313.9 GW by 2030, with a CAGR of 37.1%, and an average annual increase of 39.9 GW.

In the first half of 2024, China’s energy storage market continued its strong growth momentum, with diversified development across various storage technologies. The active bidding market, lower capacity investments, and enhanced policy support have collectively provided robust backing for the sustained and healthy growth of the novel energy storage market. Looking forward, the market is expected to maintain its rapid expansion, providing solid support for the achievement of China’s dual carbon goals.