China's New Energy Storage Capacity Reaches 153 GW Amid Market Shift

China's operational new energy storage capacity reached 153 gigawatts and 396 gigawatt-hours by the end of June 2026, reflecting a 61 percent year-on-year increase, according to the National Energy Administration. Data published in People's Daily indicates that equivalent utilization hours across major grid operating zones continued to climb in the first half of the year. Officials stated that following rapid capacity expansion during the 14th Five-Year Plan period, the industry is poised to transition from policy-backed scaling into a comprehensive market-oriented operational phase during the upcoming 15th Five-Year Plan period.

The steady growth in installed capacity and operating utilization hours demonstrates that new energy storage assets are actively participating in peak shaving and grid balancing, providing essential support for absorbing renewable power across China's national grid.

China's operational new energy storage capacity reached 153 gigawatts (GW) and 396 gigawatt-hours (GWh) by the end of June 2026, marking a 61 percent increase compared to the same period last year, according to figures released by the National Energy Administration (NEA) and reported by People's Daily. Grid operation data highlighted improving utilization of these assets during the first six months of 2026. In the service area of the State Grid Corporation of China, equivalent utilization hours reached 573 hours, an increase of 9 hours year-on-year. In the China Southern Power Grid operating area, utilization reached 626 hours, up by 41 hours compared to the previous year. The figures reflect a multi-year trend documented in the NEA's newly released China New Energy Storage Development Report (2026). Nationwide equivalent utilization hours climbed from 611 hours in 2023 to 911 hours in 2024, reaching 1,195 hours in 2025 as dispatch systems integrated storage more deeply into grid regulation and renewable absorption. Xu Jilin, deputy director of the Department of Energy Conservation and Science & Technology Equipment at the NEA, noted that new energy storage underwent leapfrog development throughout the 14th Five-Year Plan period (2021–2025). Installed capacity expanded from approximately 3 GW at the beginning of the period to 136 GW by the end of 2025, essentially doubling year-on-year. The NEA report indicated that China has established a diversified technological landscape dominated by lithium-ion battery storage alongside various alternative technologies, such as flow batteries, compressed air, and flywheel systems. Looking ahead, Xu stated that the 15th Five-Year Plan period (2026–2030) will mark a strategic transition for the industry, moving from large-scale capacity deployment into a phase of comprehensive market-oriented development. Under this framework, the regulator aims to focus on demand-driven deployment, technological innovation, market mechanisms, and standardized oversight to maintain China's industrial and technological positioning in energy storage.