BUSINESS

China’s Energy Storage Boom Cools as Policy Support Fades

Published: Jan. 23, 2026 1:45 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Construction site of a new energy storage battery project in Jinhua, Zhejiang province. Photo: VCG

The expansion of China’s new-energy storage capacity continued in 2025 but at a markedly slower pace, signaling a transition from a policy-fueled boom to a more mature phase driven by market dynamics and operational efficiency.

While the sector remains on an upward track, growth cooled to double-digit rates after installations more than doubled the previous year. The shift reflects the industry’s maturation following a major policy reset that prioritized profitability and utilization over sheer capacity expansion in the world’s largest renewable energy market.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China added 66.43 GW of new-energy storage capacity in 2025, a 52% year-on-year increase, reaching a total of 144.7 GW.
Growth slowed after policy shifts in February 2025 emphasized market efficiency and operational effectiveness over mandated capacity expansion.
Cumulative storage could exceed 370 GW by 2030, with future profitability focused on price arbitrage rather than ancillary services or mandates.

AI generated, for reference only

What Happened When

2024：: China's new-energy storage sector saw year-on-year growth rates of 103% (capacity) and 136% (energy) compared to 2023.

February 2025：: The National Development and Reform Commission and the National Energy Administration jointly issued a policy document ending the mandate for renewable power projects to be paired with storage systems, and emphasized operational effectiveness.

By the end of 2025：: China added 66.43 GW of new-energy storage capacity (189.48 GWh), with year-on-year increases of 52% and 73% respectively; cumulative installed capacity reached 144.7 GW, up 85% over the prior year.

By the end of 2025：: Provincial governments had largely met their new energy storage targets under the 14th Five-Year Plan, totaling more than 91.6 GW.

AI generated, for reference only