State Grid Meng Qingqiang: State Grid's new energy storage installed capacity in the operating area reaches 76GW, promoting equal pay for equal work among regulation resources.

Since the 18th National Congress of the Communist Party of China, the CPC Central Committee with Comrade Xi Jinping at its core has creatively proposed the new energy security strategy of "Four Revolutions and One Cooperation," pointing the way for building a new energy system. Energy security is crucial to the overall national economic and social development. Recently, the National Energy Administration released the "China New Energy Storage Development Report 2025," systematically reviewing the achievements and trends of new energy storage development in China, emphasizing that new energy storage is a key technology supporting the construction of a new power system and holds strategic significance for achieving the "dual carbon" goals and high-quality energy development. As a large backbone enterprise related to national energy security, State Grid Corporation of China thoroughly implements the decisions and deployments of the CPC Central Committee, leads with technological innovation, promotes high-quality development of the new energy storage industry, and fully contributes to ensuring national energy security and serving Chinese-style modernization.

I. Remarkable achievements of State Grid Corporation in promoting new energy storage development.

State Grid Corporation firmly shoulders the responsibility of a "major national instrument," continuously strengthening innovation in new energy storage technology and mechanism construction. Driven by policy support and market demand, the company's operating area has achieved simultaneous growth in both the quantity and quality of new energy storage development.

(1) Rapid growth in installed capacity and continuous enhancement of regulation capabilities.

The "China New Energy Storage Development Report 2025" points out that the installed capacity of new energy storage has doubled year by year. By the end of 2024, the cumulative installed capacity of newly built and operational new energy storage projects nationwide reached 73.76 million kilowatts, an increase of over 130% compared to the end of 2023.
 

State Grid Corporation has precisely planned new energy storage construction, promoting a leap in installed capacity and regulation capability. As of June 2025, the company's operating area new energy storage installed capacity reached 76.24 million kilowatts, with an annual new installed capacity of 17.48 million kilowatts, a year-on-year increase of 100.34%. In terms of regional distribution, Northwest, North China, and East China lead the nation, with Northwest having 26.49 million kilowatts, North China 20.25 million kilowatts, and East China 13.56 million kilowatts. Nineteen provinces have operational installed capacity exceeding one million kilowatts, with Xinjiang (12.12 million kilowatts), Shandong (9.39 million kilowatts), and Jiangsu (7.32 million kilowatts) ranking top three. In 2024, the utilization hours of new energy storage reached 991 hours, an increase of 267 hours year-on-year. During the peak summer period, short-term peak capacity exceeded 30 million kilowatts, accounting for 92% of the grid-connected scale. The deep synergy between large-scale installed capacity and intelligent regulation has built a solid fortress for the safe operation of the new power system.

(2) Multiple technology routes advancing simultaneously, with the standard system increasingly improved.

State Grid Corporation leads the establishment of an original technology source base, promoting diversified technological innovation and demonstration applications. Lithium-ion batteries have overcome the gigawatt-hour level energy storage system integration challenges, demonstrated in Dongying, Shandong; sodium-ion batteries have achieved hundred-megawatt-hour level commercial applications, providing abundant regulation means for the Hubei power grid; State Grid Xinjiang Company participates in the 200-megawatt all-vanadium flow battery energy storage grid connection technology research, with the largest installed capacity and duration nationwide; State Grid Hubei Company participates in the investment, construction, and commissioning of the world's largest 300-megawatt compressed air energy storage power station, which has been grid-connected and put into operation; actively participates in the formulation and revision of new energy storage standards, with more than 40 national group standards newly released or implemented in the field of new energy storage, promoting continuous improvement of the standard system. The demonstration applications of various new energy storage technologies jointly create a healthy development pattern of "a hundred boats competing and a thousand sails racing."

(3) Trading mechanisms continuously improved, market value gradually released.

State Grid Corporation takes the lead in building market-oriented mechanisms for new energy storage, opening key channels for value release. Supporting 22 provinces (regions) to issue market rules, exploring capacity compensation mechanisms in Shandong, Inner Mongolia, Xinjiang, and Hebei; Jiangsu establishes a comprehensive revenue model of "electric energy market price difference + peak subsidy + ancillary services"; Gansu implements an independent energy storage bidding compensation mechanism; Hubei implements a priority clearing mechanism in the spot market; in 2024, the operating area new energy storage transaction volume reached 7.12 billion kilowatt-hours, a year-on-year increase of 2.7 times. Diverse trading mechanisms act like flowing water, fully stimulating the endogenous power within the modern energy system.

II. Promoting the development of the new energy storage industry.

The new energy storage industry has entered a new stage of scaled development, with technological innovation and installed capacity achieving leapfrog growth, becoming a strategic support for building a new power system. We must deeply understand General Secretary Xi Jinping's important instruction to "accelerate the construction of a clean, low-carbon, safe, sufficient, economical, efficient, supply-demand coordinated, flexible, and intelligent new power system," accurately grasp the three development directions, and promote new energy storage from "following" to "leading."

(1) Promote the positioning of new energy storage to evolve toward the core of system regulation.

Currently, new energy storage undertakes multiple functions such as peak shaving, frequency regulation, power supply guarantee, and capacity support, but its positioning is not yet clear. In 2024, new energy installed capacity surpassed thermal power for the first time, but its annual equivalent charge-discharge cycles of supporting storage are only 177 times, significantly lower than thermal power supporting storage (897 times), grid-side storage (248 times), and user-side storage (368 times). It is urgent to clarify functional positioning and explain the collaborative relationship of regulation resources in the new energy system. The "China New Energy Storage Development Report 2025" proposes to "focus on studying the positioning and role of new energy storage during the 15th Five-Year Plan in building a new power system." In the future, planning guidance will be strengthened, storage scale scientifically allocated, and coordinated development of source-grid-load-storage integrated, significantly enhancing support for new energy consumption and power supply guarantee.

(2) Promote technological innovation to break through safe, efficient, and long-duration energy storage.

Currently, new energy storage applications are dominated by lithium-ion batteries (accounting for 96.4% of installed capacity in 2024), while long-duration storage such as compressed air and flow batteries account for only 1.0%, urgently needing to focus on breakthroughs in energy conversion efficiency and economic bottlenecks of long-duration storage technologies, seeking breakthroughs in basic research, equipment development, and engineering applications. The "China New Energy Storage Development Report 2025" clearly states "to increase efforts in core technology and equipment research." In the future, focus will be on large-capacity wide-temperature batteries, high-performance flow systems, and networked storage, relying on national key R&D programs to promote technology from laboratory verification to large-scale engineering applications.

(3) Promote the market mechanism towards a multi-level unified electricity market system

Currently, the construction of the national unified electricity market has entered a critical phase, facing issues such as limited price fluctuation space for electric energy, incomplete varieties of ancillary services, and an imperfect capacity market mechanism, which restrict the value release of new energy storage; There is an urgent need to establish a market mechanism adapted to the characteristics of new energy storage, scientifically guide costs, and ensure reasonable returns. The "China New Energy Storage Development Report 2025" emphasizes "improving the market participation mechanism for new energy storage." In the future, it will follow the principle of "who benefits, who bears the cost," improve the spot price formation mechanism, expand ancillary service varieties such as ramping and reactive power regulation, explore capacity pricing mechanisms, and build a multi-level unified market system.

III. Key Measures by State Grid Electric Power Research Institute to Promote High-Quality Development of New Energy Storage

The "China New Energy Storage Development Report 2025" points out that 2025 is a key year for promoting the high-quality development of new energy storage in China. The National Energy Administration will work with relevant units to further strengthen planning guidance, continuously improve cost guidance mechanisms, actively carry out core technology research, and promote efficient utilization of new energy storage. To thoroughly implement the spirit of the 20th Central Committee's Third Plenary Session, conscientiously implement the national "dual carbon" work deployment, accelerate the construction of a new power system, concentrate superior scientific research forces to carry out modern engineering technology innovation in the power industry, and establish the State Grid Electric Power Engineering Technology Research Institute Co., Ltd. (referred to as State Grid Electric Power Research Institute), dedicated to diversified physical energy storage technology research and leading the development of the new energy storage industry. Standing at the new starting point of the 15th Five-Year Plan, the State Grid Electric Power Research Institute will fully play the role of the main force in power technology innovation, deeply practice the new energy security strategy, adhere to innovation-led, safe development, and market-driven principles, promote breakthroughs in key technologies of new energy storage and high-quality industrial development with systematic thinking, and provide strong support for building a clean, low-carbon, safe, and efficient new energy system.

(1) Strengthen top-level design and optimize resource allocation

Serving the national "15th Five-Year Plan" new energy storage implementation plan, scientifically conduct technical route research: according to regional new energy scale and consumption needs, systematically analyze applicable scenarios and functional positioning of different technical routes; coordinate source-grid-load-storage links to build a multi-level technical support system; carry out special evaluation research on new energy storage technologies, strengthen the standard system construction, and promote healthy and orderly industrial development. Use scientific planning to guide the layout of technology research and development, laying a solid foundation for the high-quality development of new energy storage.

(2) Tackle core technologies and lead industrial upgrading

Serving the national energy security strategy, strengthen new energy storage technology research: focus on safety, reliability, economy, and efficiency goals; deploy basic theoretical research and key technology breakthroughs; use national science and technology projects as a starting point to build new physical energy storage demonstration projects, develop independently controllable equipment, and promote large-scale application of innovative technologies such as new compressed air energy storage, flywheel energy storage, gravity energy storage, and thermal energy storage. Break through technical bottlenecks through independent innovation and promote high-quality development of the new energy storage industry.

(3) Strengthen technical support and serve market mechanism improvement

Serving the construction of the national unified electricity market, provide technical support for new energy storage: accelerate the design of key mechanisms for multi-level market coordination, promote extensive participation of new energy storage in the electricity market; continuously advance optimization of the electricity spot market price mechanism, expand profit paths for new energy storage; promote the addition of ancillary service varieties such as ramping and reactive power regulation that can fully utilize new energy storage technology effectiveness, and reasonably allocate costs to electricity users; Explore new energy storage capacity pricing mechanisms and promote "equal pay for equal work" for regulation resources. Use sound market mechanisms to stimulate endogenous motivation and ensure sustainable and large-scale development of new energy storage.

New energy storage is the "accelerator" of the energy revolution and a strategic support for achieving the "dual carbon" goals. The State Grid Electric Power Research Institute will always keep the "national interest" in mind, bravely pioneer new energy storage technological innovation, promote technology innovation and industrial integration with an open and collaborative concept, contribute scientific and technological strength to promote energy system transformation and ensure national energy security, and strive to write a new chapter in high-quality energy development!
 

(Meng Qingqiang, Chief Engineer of State Grid Corporation of China and Chairman and Party Secretary of State Grid Electric Power Engineering Research Institute Co., Ltd.)