China aims to add more than 100 GW of new energy storage (primarily battery storage, excluding pumped hydro) by 2027, according to a new action plan presented by authorities on Friday.
The “Special Action Plan for Large-Scale Construction of New Energy Storage (2025-2027)” released by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) outlines a roadmap to scale up energy storage to support the country’s rapidly expanding renewable energy capacity. The plan is expected to drive RMB 250 billion yuan (approximately $35 billion) in sector investment over three years.
China has already outpaced its previous targets. The country reached its 2025 goal of 30 GW two years early and saw explosive growth in 2024 alone, adding 37 GW / 91 GWh of new energy storage – more than doubling total capacity year-on-year. As of June 2025, China’s new energy storage fleet had surpassed 100 GW, overtaking the pumped hydro additions for the first time, according to data from the China Energy Storage Alliance (CNESA).
The new action plan, grounded in the nation’s dual carbon goals, aims to grow the national new energy storage fleet to 180 GW by 2027. It responds to the urgent need for flexible energy regulation amid rapid renewable energy expansion. Officials from the National Energy Administration emphasized that energy storage is now essential for stabilizing the power system and meeting growing electricity demands.
The plan also comes at a critical moment. Earlier this year, China scrapped a national energy storage mandate – a policy that had previously driven as much as 75% of the country’s storage deployment. Introduced in 2022, the mandate required most new solar and wind projects to include co-located storage. Over 20 provinces implemented their own mandates, with some increasing their required storage ratios from 10% to as high as 20%.
The new plan envisages a more comprehensive and market-oriented approch to scaling up new energy storage. The plan outlines strategies for expanding application scenarios and improving the utilization efficiency of storage systems. It also aims to promote application of innovative projects and strengthen the development of a comprehensive standardization system.
Finally, the plan seeks to imrpove market mechanisms for the new energy storage by promoting their participation in the wholesale and anciliary service markets and accelerating the development of a dedicated pricing mechanism.
The Action Plan considers the needs of building a new power system and focuses on three main areas: the power supply side, the grid side, and other emerging application scenarios.
On the power supply side, the focus is on large-scale base energy storage, integration with new energy sources, and support for coal-fired power plants. These measures aim to improve the ability of coal plants to adjust output and enhance the overall grid integration of renewable energy.
On the grid side, the emphasis is on deploying storage at key grid nodes and within distribution networks. The plan encourages the development of energy storage facilities that can serve as alternatives to traditional grid infrastructure, as well as broader use of grid-based storage solutions.
For other applications, the plan targets fast-growing areas such as industrial parks, data centers, distributed solar systems, and telecom base stations. Innovative storage models will be promoted to improve energy efficiency and support stable power supply in these scenarios.
To support the integration of new energy storage into a unified national electricity market, the Action Plan calls for accelerating the development of market mechanisms. Key measures include:
- Promoting the joint participation of “new energy + energy storage” in electricity market transactions as a single bidding entity.
- Encouraging regions to develop auxiliary services – such as ramping and inertia support – based on local power system needs.
- Improving capacity pricing mechanisms to better reflect the value of regulatory resources like energy storage.
In addition, the Plan urges all regions to speed up the development of medium- and long-term electricity markets as well as spot markets. It also calls for market price formation mechanisms to ensure that the pricing of energy storage charging and discharging is fair and market-driven.
Looking ahead, the NEA will guide provincial and regional energy authorities to follow national planning guidelines, accurately assess their local regulatory capacity needs, and clearly define the scale and layout of new energy storage and other flexibility resources.
