China’s Energy Storage Installations Increased by 110% in 2022

Compulsory allocation policy for energy storage has emerged as a significant driving force


By the end of 2022, the installed capacity of newly operational energy storage projects in China had reached 8.7 GW, an increase of more than 110% compared to the end of 2021, according to Polaris Solar Photovoltaic Network.

The newly commissioned solar+storage projects in 2022 totaled 2,204 MW/4,520 MWh.

North China accounted for 28.6% of the new energy storage capacity, followed by Northwest China at 26.6%, Central China at 16.1%, East China at 14.7%, South China at 9.4%, Southwest China at 9.4%, and the Northeast region at 1.9%.

The top five provinces with cumulative installed capacity were Shandong, Ningxia, Guangdong, Hunan, and Inner Mongolia.

According to data from the National Energy Administration (NEA), lithium-ion battery energy storage accounted for 94.5% of the new storage installations at the end of 2022. Compressed air energy storage constituted 2%, liquid flow battery energy storage comprised 1.6%, lead-acid (carbon) battery energy storage contributed 1.7%, and the remaining 0.2% was from other technologies.

China Energy Storage Development 2022

Since the end of 2020, the compulsory allocation policy for energy storage in new projects, including solar+storage, has emerged as a significant driving force.

By the end of 2022, more than 20 provinces, municipalities, and autonomous regions in China have issued new energy allocation and storage policies.

These policies mandate energy storage allocation ratios ranging from 10% to 20%, with varying allocation durations of 2-4 hours. The allocation and storage of new energy resources have generated substantial demand for energy storage installations, providing a reliable market for the energy storage sector.

In 2021 and 2022, alongside policies supporting the development of new energy, including PV, specific subsidy policies for energy storage, particularly for PV+energy storage applications, have been introduced.

Regions like Jiangsu, Zhejiang, and Shanghai have implemented various subsidies and incentives to promote solar+storage applications.

China installed 33.6 GW of solar capacity in the first quarter of 2023, marking a decrease of 3% quarter-over-quarter, according to the NEA.

Recently, China announced the continuation of the vehicle purchase tax reduction and exemption policy for new energy vehicles, which include electric vehicles, plug-in hybrids, and fuel cell vehicles, until the end of 2027.