The Chinese government has set a dual carbon national goal of achieving peak carbon emissions before 2030 and carbon neutrality before 2060, demonstrating its commitment to solidifying global cooperation in combatting climate change.
Though shorter than many other economies, the 30-year gap between these two milestones poses challenges and opportunities for the country. In its pursuit of these goals, China has adopted a comprehensive and whole-society approach, setting long-term targets that require a delicate balance between climate action, economic development, people’s livelihoods, and national security.
Now, Chinese reports suggest that the government’s ambitious dual carbon goal and targeted policies have significantly boosted the country’s energy storage industry, propelling it forward amid fierce market competition and rapid developments.
Policy support boosts investment and development
As China actively pursues its carbon peak and carbon neutrality goals, the emphasis on renewable energy adoption has grown. In effect, energy storage has emerged as a crucial component of this strategy.
With increasing policy support, numerous Chinese companies started investing heavily in energy storage-related projects. Their business expansion strategy is unsurprising, as it is only natural for them to seek additional profit from this highly lucrative market.
That said, experts now forecast that the scale of the investment in the industry will surpass 1 trillion yuan (approximately $138.39 billion) by 2025.
Given the number of major companies already partnered with local governments for significant investments, China will most likely reach that forecast.
Notable examples include the following:
- A 100-megawatt-hour gravity-based energy storage project in Huailai County, Hebei Province, initiated by a subsidiary of China Tianying Inc.
- Electric automaker BYD and battery tech giant CATL raised energy storage-related investment in South China’s Guangdong Province
- American EV giant Tesla’s planned battery factory in Shanghai
The favorable market outlook, driven by policy support, serves as a compelling impetus for new-energy conglomerates and competitive businesses.
These factors urge them to actively participate in China’s emerging energy storage sector. As per the China Industrial Association of Power Sources (CIAPS), the industry currently has almost 90,000 enterprise registrations.
Large-scale development forecast for 2025
National Energy Administration predicts that China’s energy storage sector, excluding hydropower storage, will begin large-scale development by 2025.
Therefore, the government encourages the participation of energy storage facilities to alleviate strain on the power system during peak periods.
In addition, CIAPS official Wang Zeshen expects the number of energy storage power stations to grow rapidly as local policies targeting energy storage mature and independent energy storage business models are further optimized.
Wang further estimated China’s energy storage market to hit 70 gigawatts by 2025, compared to just over 15 gigawatts in 2020.
As China Energy Engineering Group Co., Ltd. Board Chairman & Executive Director Song Hailiang stated, China’s commitment to peaking carbon emissions by 2030 and achieving carbon neutrality by 2060 will undoubtedly drive the energy revolution, accelerate the development of new energy systems, and provide substantial support for the energy storage sector.
See Also:
- China’s biggest diesel engine firm partners with BYD for battery supply
- China: Power battery installations grew 29.7% YoY in March 2023
- Tesla will launch a new Megapack battery production plant in Shanghai, China
- US and Japan partner on EV battery minerals to lessen reliance on China
- CATL starts mass production of upgraded Qilin battery in China
All that said, China’s ambitious dual carbon goal has not only demonstrated the country’s commitment to combat climate change. It has also accelerated the growth of the country’s energy storage sector.
The pursuit of renewable energy adoption and the emergence of energy storage as a key component of this strategy highlights China’s position in the global effort to transition towards a sustainable and low-carbon future.
