BUSINESS

China’s Compressed-Air Storage Industry Seeks Commercial Breakthrough, Developer Says

Published: Apr. 7, 2026 2:17 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

The construction site of Jiangsu province's first 300-megawatt salt cavern compressed air energy storage power project in Huai'an on April 27, 2025. Photo: VCG

Compressed-air energy storage is poised for faster growth in China, but the nascent industry must still prove its commercial viability to win broader market acceptance, a senior executive at a leading developer said.

The industry still needs to prove it can cut costs, build industry standards and operate reliably at commercial scale, according to Ji Lü, general manager of Zhongchu Guoneng (Beijing) Technology Co. Ltd., in a media interview on April 2 at an industry conference.

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

CAES in China (0.9% new capacity end-2025 vs 97% Li-ion) must prove costs, standards, reliability per Ji Lü of Zhongchu Guoneng.
Advantages: 300MW units, 4-10h duration, 30-50y life, 0.2-0.3¥/kWh LCOE, 70% efficiency, safety.
Zhongchu demos: 100MW Zhangjiakou, 300MW Feicheng; >6GW pipeline; 2-5y for commercial data.

AI generated, for reference only

Who’s Who

Zhongchu Guoneng (Beijing) Technology Co. Ltd.: Zhongchu Guoneng (Beijing) Technology Co. Ltd. is a leading developer of compressed-air energy storage (CAES) in China. Its general manager, Ji Lü, highlighted the technology's potential. The company has built 100 MW and 300 MW demonstration projects in Zhangjiakou, Hebei, and Feicheng, Shandong. It has over 6,000 MW in planned or active projects across Shandong, Henan, Ningxia, and Jiangxi.

First Capital Securities Co. Ltd.: First Capital Securities Co. Ltd. issued a January research note estimating full-life-cycle electricity costs at 0.38 yuan/kWh for pumped hydro, 0.42 yuan/kWh for CAES, and 0.41 yuan/kWh for lithium iron phosphate battery storage.

AI generated, for reference only