New energy storage ‘goes mainstream’: from a power “supporting role” to one of six emerging pillar industries

Beijing elevates storage to the front line

China’s National Development and Reform Commission (国家发展和改革委员会) has formally named new-type energy storage as one of six “emerging pillar industries” the country will cultivate during the 15th Five‑Year Plan, signalling a policy shift that lifts the sector from a supporting role to centre stage. NDRC director Zheng Shanjie (郑栅洁) said these six sectors together had grown to nearly RMB 6 trillion in output by 2025 and, it has been reported, could double to more than RMB 10 trillion by 2030. That projection underpins why storage — once an optional add‑on for wind and solar — is now framed as infrastructure for a new energy system.

From mandatory pairing to market‑driven returns

Policy is shifting too. “Mandatory storage pairing” (强制配储) is being wound down and replaced by market mechanisms that recognise storage’s systemic value. On Jan. 30 the NDRC and the National Energy Administration (国家能源局) jointly signalled a grid‑side independent storage capacity‑pricing mechanism — a capacity payment that compensates readiness, not only energy arbitrage. Coupled with State Council (国务院) guidance to improve the unified national power market, storage projects can now stack revenues: capacity remuneration + energy arbitrage + ancillary services. Analysts at Huatai Securities (华泰证券) say capacity pricing materially improves project IRR, and in fast‑moving spot markets such as Guangdong and Shandong operators are already optimising charge/discharge strategies to turn small price spreads into meaningful returns.

Technology race, cost falls — and safety warnings

Technology is diversifying as scale and cost fall. Lithium‑ion dominates (about 96.1% of installations), and companies such as CATL (宁德时代) and EVE Energy (亿纬锂能) have pushed the industry into a “500Ah+” large‑cell era with liquid cooling and larger unit formats, supporting lower system costs — storage EPC bid prices are roughly 40% below 2022 levels. At the same time long‑duration options (flow batteries, compressed‑air storage) and “grid‑forming” systems that actively stabilise grids are moving from pilot to commercial demonstration. But it has been reported that several storage accidents in 2025 and emerging price wars have prompted industry warnings that the next phase must prioritise reliable operation over low‑cost bidding.

Opportunity and risks in a geopolitically charged market

The prize is huge — a potential ten‑trillion‑plus RMB market — but the path is uneven. Developers must adapt to the exit of compulsory mandates, grasp new market signals, and manage safety and lifecycle costs. Geopolitics also matters: global supply chains, Western incentives and export controls on battery materials and equipment will shape who benefits as storage scales worldwide. Can energy storage become China’s next global tech card after photovoltaics? The answer will depend on whether policy, market design and industrial discipline move in step.