Intensive energy storage policies introduced, accelerating industry development

27 Mar.,2025

In September 2024, national and local governments launched a series of energy storage policies that significantly boosted the industry's growth. These policies cover subsidies for energy storage systems, strategic planning, integration with renewable sources, market participation, and project support, highlighting China's commitment to advancing this sector.

 

In September 2024, national and local governments launched a series of energy storage policies that significantly boosted the industry's growth. These policies cover subsidies for energy storage systems, strategic planning, integration with renewable sources, market participation, and project support, highlighting China's commitment to advancing this sector.

At the national level, agencies like the National Energy Administration introduced comprehensive policies. For instance, it published "Basic Rules for Electricity Market Registration," outlining essential conditions for new energy storage enterprises. This includes requirements for grid connection agreements and standards for electricity data measurement and transmission—providing clear guidance for these companies in electricity markets.

Additionally, the National Development and Reform Commission issued "Regulations on Electricity Market Supervision," clarifying trading entities such as energy storage firms and virtual power plants. The National Energy Administration also announced comprehensive supervision efforts in 2024 covering all aspects of planning construction, operations, supply assurance—including monitoring projects related to dispatching stored electricity.

On a local level, various regional governments have introduced supportive measures for energy storage. For instance, Longhua District in Shenzhen offers matching funding up to 5 million yuan at 50% of municipal grants for new demonstration projects involving innovative energy storage applications. Additionally, operational electrochemical battery projects with investments over 5 million yuan can receive rewards up to 300 thousand yuan based on 20% of their investment if they meet specific duration criteria (at least two hours).

Urumqi City in Xinjiang aims for an installed capacity exceeding 80 MW/160 MWh by 2025 through user-side demonstration projects, moving from initial commercialization to large-scale deployment. Meanwhile, Dingxi City in Gansu Province plans to add approximately 730 thousand kilowatts of renewable generation capacity during its “14th Five-Year Plan,” requiring corresponding source-side installations totaling at least 73 thousand kilowatts/146 megawatt-hours.

For renewable integration efforts, Inner Mongolia proposed integrated wind-solar-hydrogen-ammonia systems that allocate no more than 1.2 times annual consumption needs toward renewables and include necessary backup capacities of fifteen percent (four-hour). Xinyang City’s policy mandates reasonable proportions dedicated specifically to enhancing self-consumption capabilities through effective management strategies around these resources.

Concerning pricing structures in market transactions, Anhui Province has clarified charging and discharging rates for different months to ensure economic viability. Hunan Province mandates compliance with primary frequency regulation functions and dynamic reactive compensation features, along with performance assessments for entities exceeding twenty megawatts or twenty-megawatt-hours.

Moreover, the Yangtze River Delta region is accelerating developments related to innovative forms: Shanghai, Jiangsu, Zhejiang, and Anhui provinces have collectively called for proposals aimed at establishing future industrial standards that promote advancements addressing both security concerns and green transitions in these areas.

These policy announcements highlight China’s diverse approach to fostering growth in energy storage technologies while facilitating research and practical implementations. As installation scales increase, their role in supporting sustainable utilization patterns enhances grid stability and contributes positively to securing reliable energy supplies.

Simultaneously, such frameworks provide robust support for anticipated large-scale expansions into new horizons awaiting realization soon.