China's operational new-type energy storage capacity stood at 167 GW/435 GWh at the end of September 2026, up 63% year on year, according to National Energy Administration figures released on Oct. 30. The category includes electrochemical, compressed-air and other emerging storage systems, but excludes conventional pumped hydro.
The latest total compares with 135.93 GW/351.12 GWh at the end of 2025, implying a net increase of about 31 GW/84 GWh during the first nine months of 2026. The NEA presented the data at its quarterly press conference on national energy developments.
Duration and utilization rise
Average storage duration reached 2.61 hours, about 0.27 hours more than a year earlier. Equivalent utilization hours were around 915 hours in the nine-month period, roughly 10 hours above the same period of 2025.
According to the NEA, those changes suggest that capacity growth is being accompanied by gradual shifts in system configuration and use, rather than expansion in installed capacity alone. The agency attributed the sector's development to government policies, technological innovation, industrial supply chains and rising demand for flexibility in the power system.
Renewables increase flexibility needs
China's combined wind and solar generating capacity exceeded 2.01 TW at the end of September, accounting for about 48.7% of total installed power capacity. As variable renewable output grows, storage is increasingly needed to absorb surplus electricity, shift generation to higher-demand periods and provide fast-response grid services.
The market's structure is also changing. Official 2025 figures showed independent storage facilities at 51.2% of cumulative new-type installations. Projects of 100 MW or more made up 72% of installed capacity, while systems with at least four hours of duration accounted for 27.6%.
Lithium-ion batteries remained dominant, representing about 96% of installed new-type storage capacity. Compressed-air, flow batteries and other technologies are gradually expanding their presence.
Market reforms and 2030 target
China has been developing arrangements that allow independent storage operators to earn revenue from electricity trading, ancillary services and capacity remuneration. The aim is to gradually reduce reliance on mandatory storage requirements tied to renewable projects. Market reforms are expected to reinforce these trends.
Under the 15th Five-Year Plan for power system development, new-type energy storage capacity is targeted to reach 300 GW by 2030. The plan places greater emphasis on longer-duration systems, grid-forming capabilities and improved operational efficiency.
Grid balancing in Inner Mongolia
Storage's growing role is already visible in renewable-rich regional grids. In western Inner Mongolia, the grid operator reported 20.23 GW/70.47 GWh of operational storage capacity in October. During emergency dispatch operations, storage supplied up to 12.25 GW, equivalent to 33% of the grid's electricity demand at the time.
Such cases illustrate how storage can provide substantial short-term balancing capacity in systems with high renewable penetration. For other countries expanding wind and solar generation, China's deployment offers experience in large-scale storage manufacturing, grid integration and centralized dispatch.