China’s energy storage industry is poised for rapid expansion through 2027, fueled by surging market demand and strong government backing. Industry leaders and analysts believe the country is set to transition from an emerging player to a global powerhouse in the sector.
Experts say that technological breakthroughs and favorable policies will drive this growth, positioning China at the forefront of the global energy storage market. Fei Zhi, vice-chairman of GCL Group, emphasized that advances in energy storage technologies will be critical to integrating renewable energy sources and smart grids, enhancing the flexibility and efficiency of China’s energy system.
“The new energy storage industry is on track to evolve from a novice to a global pioneer by 2027,” Fei said. “This progress will be driven by cutting-edge technology and the increasing integration of renewable energy generation.”
Fei’s comments follow the release of a national action plan designed to foster high-quality growth in the energy storage sector. The plan outlines initiatives to strengthen innovation, market competitiveness, and sustainable development in the industry.
Strategic Targets for 2027
Under the government’s blueprint, China aims to cultivate three to five leading energy storage enterprises by 2027. It will also encourage the formation of regional industry clusters to bolster innovation and market influence. The strategy focuses on the entire energy storage value chain, promoting the development of technologies that are essential for optimizing renewable energy usage.
As part of this drive, GCL Group’s listed subsidiary, GCL Energy Technology Co Ltd, has been innovating new business models—including virtual power plant systems—to diversify revenue streams through electricity trading and ancillary services. The company is also expanding its vehicle-to-grid (V2G) capabilities and, in collaboration with Chinese electric vehicle manufacturer Nio, launched a plan last year to build a nationwide network of 100 energy stations.
A Push for Smart Manufacturing
The government plan also calls for deeper support across the energy storage manufacturing value chain, aiming to establish a service-oriented manufacturing model. It prioritizes the integration of next-generation digital technologies—such as blockchain, big data, artificial intelligence, and 5G—into the sector. Additionally, efforts are underway to accelerate the construction of smart factories and promote digital upgrades in key production and system integration processes. Techniques like machine vision, ultrasound, and infrared thermography will be adopted to improve quality control.
Tian Qingjun, senior vice-president of Envision Group, noted that China’s energy storage manufacturing capabilities already set global standards. He believes the country will continue to lead in advanced power trading and grid integration technologies.
“While developed countries possess mature electricity markets, their grid infrastructures are often weaker, creating substantial demand for grid-forming and trading technologies,” Tian said. “Chinese energy storage firms should continue to ramp up R&D to meet the growing needs of overseas markets.”
Envision Group, recognized globally for its leadership in energy storage system integration, has achieved key breakthroughs in trading-based and grid-integrated storage technologies. The company has validated these technologies through multiple projects at home and abroad.
Positioning China as a Global Energy Storage Leader
Experts believe China’s strategy will solidify its position as a global manufacturing and technological leader in energy storage—an essential component in the transition to renewable energy.
Wang Shouxiang, a professor at Tianjin University’s School of Electrical and Information Engineering, said the rapid growth of renewable energy sources such as solar and wind, combined with the rise of electric vehicles and decentralized power generation, is driving strong demand for advanced energy storage systems.
“China has already secured a leading position in core energy storage technologies, which is key to enabling the large-scale development of renewables,” Wang said. “The country’s dominance across the entire industry value chain gives it a significant competitive edge.”
In 2024 alone, China issued 770 policies related to energy storage, including 77 at the national level. These policies focus on development planning, integration of new energy storage systems, market regulation, and financial incentives.
By the end of 2024, China’s total installed capacity of new energy storage projects reached 73.76 million kilowatts—an increase of over 130 percent compared to the end of 2023, according to the National Energy Administration.
As China accelerates its efforts, the country is well on its way to becoming a global epicenter for energy storage innovation and manufacturing—paving the way for a more flexible, sustainable energy future.
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