China's operational new-type energy storage capacity stood at 167 GW/435 GWh at the end of September 2026, 63% higher than a year earlier, according to figures the National Energy Administration presented at its quarterly press conference on Oct. 30.
The category includes electrochemical, compressed-air and other emerging storage systems, but not conventional pumped hydro. At the end of 2025, capacity was 135.93 GW/351.12 GWh, meaning the fleet added about 31 GW/84 GWh in the first nine months of 2026.
Longer duration, higher use
Average storage duration reached 2.61 hours, about 0.27 hours more than a year earlier. Equivalent utilization hours were around 915 during the nine-month period, roughly 10 hours above the same period in 2025.
The NEA said policy support, technology innovation, industrial supply chains and growing demand for power-system flexibility have underpinned the expansion. The utilization data suggest that China's storage growth is not only a matter of added installed capacity; system configuration and use are also changing.
Renewables raise the need for flexibility
Wind and solar capacity together exceeded 2.01 TW at the end of September, or about 48.7% of total installed power capacity. As variable renewable output grows, storage is needed to absorb surplus electricity, move generation to periods of higher demand and provide fast grid services.
Market structure shifts toward independent and larger projects
Official 2025 figures showed that independent storage facilities made up 51.2% of cumulative new-type installations. Projects of 100 MW or more accounted for 72% of installed capacity, while systems with at least four hours of duration represented 27.6%.
Lithium-ion batteries still dominated, at roughly 96% of installed new-type storage capacity. Compressed-air, flow batteries and other technologies are gradually gaining a presence.
Revenue rules and 2030 target
China is developing market arrangements that allow independent storage operators to earn revenue from electricity trading, ancillary services and capacity remuneration, reducing reliance on mandatory storage tied to renewable projects. Under the 15th Five-Year Plan for power-system development, new-type storage capacity is targeted at 300 GW by 2030, with more emphasis on longer duration, grid-forming capability and operational efficiency.
Grid balancing in renewable-heavy regions
In western Inner Mongolia, the grid operator reported 20.23 GW/70.47 GWh of operational storage in October. During emergency dispatch, storage supplied as much as 12.25 GW, equal to 33% of the grid's electricity demand at the time.
The example shows how storage can provide short-term balancing capacity in systems with high renewable penetration. For other countries expanding wind and solar, China's deployment offers experience in large-scale storage manufacturing, grid integration and centralized dispatch.