China's operational new-type energy storage capacity reached 167 GW/435 GWh at the end of September 2026, up 63% year on year, according to figures the National Energy Administration (NEA) released at its quarterly press conference on national energy developments on October 30.
The new-type category covers electrochemical, compressed-air and other emerging storage systems and excludes conventional pumped hydro.
Measured against 135.93 GW/351.12 GWh at the end of 2025, the figures indicate net additions of about 31 GW/84 GWh during the first nine months of 2026.
Duration and utilization rise
Average storage duration increased to 2.61 hours, roughly 0.27 hours more than a year earlier, while equivalent utilization hours reached about 915 over the nine-month period, some 10 hours above the same period of 2025.
According to the NEA, the improvements suggest that China's storage expansion is being accompanied by gradual changes in system configuration and utilization rather than growth in installed capacity alone. The agency attributed the rapid development to government policies, technological innovation, industrial supply chains and rising demand for flexibility in the power system.
Renewables set the requirement
Combined wind and solar generating capacity passed 2.01 TW by the end of September, about 48.7% of total installed power capacity. As variable renewable output expands, storage is needed to absorb surplus electricity, shift generation to higher-demand periods and provide fast-response grid services, the NEA said.
Independent and longer-duration projects gain share
Official figures for 2025 show how the market's structure has shifted:
- Independent energy storage facilities accounted for 51.2% of cumulative new-type installations.
- Projects rated at 100 MW or above represented 72% of installed capacity.
- Systems with durations of at least four hours made up 27.6%.
- Lithium-ion batteries remained dominant at about 96% of installed capacity, with compressed air, flow batteries and other technologies gradually expanding their presence.
Revenue rules and the 2030 target
Market reforms are expected to reinforce these trends. China has been developing arrangements that allow independent storage operators to earn revenue from electricity trading, ancillary services and capacity remuneration, gradually reducing reliance on mandatory storage requirements associated with renewable projects.
Under the country's 15th Five-Year Plan for power system development, new-type storage capacity is targeted to reach 300 GW by 2030, with greater emphasis on longer-duration systems, grid-forming capabilities and improved operational efficiency.
Inner Mongolia shows peak contribution
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, illustrating how storage can provide substantial short-term balancing capacity in electricity 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, according to the report.