China Energy Storage Market Analysis

China Energy Storage Market Analysis

The electro-chemical segment held a market value of over USD 13 billion in 2022. ESS are well-suited for smoothing the variable renewables output and controlling the rapid ramping up & down of the solar and wind power generation. The renewable energy capacity installations and investments remained relatively small over the past decade. However, the industry is anticipated to witness a significant growth in the coming years as various large-scale projects are under development. Increasing demand for grid stability and electricity coupled with favorable government measures to provide uninterrupted power supply is anticipated to bolster the deployment of electro-chemical storage systems. In addition, renewable energy integration measures implemented by various governments across the globe along with the increasing demand for off grid electricity will further stimulate the growth of battery energy storage systems.
 

The renewable capacity firming application held 8% of the China energy storage market share in 2022. With the intermittent output from renewable sources, energy storage systems are crucial in renewable capacity firming by smoothing output and maintaining ramp rates, thereby eliminating power and voltage fluctuations in the grid. The growing global concern for environmental pollution and efforts to mitigate the anthropogenic causes of global warming have placed renewable energy sources at the forefront. This has resulted in a rising demand for flexible energy storage systems that can reliably and efficiently integrate clean energy sources.
 

China captured 21% share of the global energy storage systems industry in 2022. The rapid regional growth of manufacturing and industrial base has led to a significant increase in energy demand. To meet this demand while adhering to strict emission standards, renewable energy technologies with local energy storage systems are being increasingly deployed across utilities and manufacturing centers. Moreover, the espousal of ESS in commercial and residential establishments is being accelerated by growing consumer awareness and decreasing technology costs. The government has also introduced new policy initiatives and targets aimed at promoting the integration of clean energy technologies, which is expected to further propel industry growth throughout the country.