The energy storage industry will play a pivotal role in driving green transition forward in China as demand for clean, renewable energy sources surges, reported China Daily on August 30.

"Energy storage systems, such as advanced batteries, pumped hydro storage and compressed air energy storage, will play a key role in maintaining a stable energy supply from various renewable sources," said Ye Xiaoning, senior engineer from the new energy department of the State Grid Energy Research Institute.

These technologies are crucial for capturing excess energy during peak production times and releasing it during periods of low production, ensuring a consistent and reliable power flow, he said during the release of an analysis report on China's new energy generation in Beijing last week.

The national cumulative installed capacity of new energy surpassed 700 million kilowatts by the end of 2022, and electricity generation exceeded 1 trillion kilowatt-hours for the first time last year. The utilization rate of new energy has remained consistently above 95 percent for five consecutive years since 2018, comparable to the levels in developed countries like Germany, it said.

Energy storage will serve as a pivotal and essential technology to support the green transition of power systems in the country, it said.

Battery technologies, for instance, are renowned for their rapid response times and modularity, making them well-suited for applications requiring quick adjustments. Additionally, pumped hydro storage excels in providing large-scale, long-duration storage, ideal for seasonal energy imbalances, according to the report.

While new energy storage facilities only engage in the peak-shaving ancillary services market and the frequency regulation ancillary services market for now, it is expected that further integration and participation of energy storage in various market segments will occur, as market infrastructure matures and new energy storage technologies evolve, according to the China Daily report.

(Gao J/Yuan XY)