China's energy storage sector is poised for unprecedented growth following the release of a landmark policy initiative. The National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have jointly issued the 'Special Action Plan for Large-Scale Construction of New Energy Storage (2025-2027)', setting aggressive targets and market integration strategies designed to solidify China's global leadership in the field.

The plan aims to achieve basic scale, market-oriented development, and world-leading technological innovation and manufacturing capabilities by 2027. A key objective is to reach over 180 GW of installed new energy storage capacity by 2027, a substantial increase from the current 95 GW as of June 2025. This expansion is projected to drive approximately 250 billion yuan (around $35 billion) in direct project investment over the next three years. The policy also emphasizes integrating energy storage into the broader electricity market, encouraging joint bidding with renewable energy sources and allowing independent participation for eligible projects.

This strategic push comes as China's energy storage market has already surpassed global benchmarks, with its installed capacity exceeding 100 GW as of June 2025, making it the world's largest. The surge in domestic demand, coupled with explosive growth in overseas markets, has led to a 'scramble for cells' among Chinese manufacturers, with factories operating at full capacity and orders often exceeding production capabilities. The upcoming 2025 World Storage Congress in Ningde, Fujian, further underscores the sector's global significance.

Key Context

Background: China's commitment to its 'dual carbon' goals (peak emissions before 2030, carbon neutrality before 2060) necessitates a robust energy storage infrastructure to integrate renewable energy and stabilize the grid.
Related Developments: The policy follows a period of rapid, often uncoordinated, growth in the sector, with China already holding over 40% of the global installed capacity.
Important Connections: The energy storage boom is intrinsically linked to the expansion of renewable energy sources (solar and wind) and the overall transformation of China's power grid into a more flexible and intelligent system.

Impact Analysis

This policy will significantly impact the energy sector by accelerating the deployment of grid-scale storage, enhancing grid stability, and facilitating higher penetration of renewables. It will drive substantial investment, create jobs, and further entrench China's dominance in global battery manufacturing and technology. Companies involved in the energy storage value chain, from raw material suppliers to technology providers and project developers, stand to benefit. Consumers may see more stable electricity prices and a faster transition to cleaner energy sources.