China’s Battery Storage Use Surges After Policy Shift
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China's Battery Storage Use Surges After Policy Shift
- Standalone battery storage systems in China averaged 299 cycles of charging and discharging annually in 2025, more than double the level recorded in 2022.
- This increase in utilization follows policy changes aimed at making the industry more market-driven, as highlighted in a report by energy think tank Ember, with significant growth observed by analysts like Biqing Yang.
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China’s battery storage facilities are seeing significantly increased usage, a trend attributed to recent policy shifts that have fostered a more market-driven environment for the industry. Standalone battery storage systems experienced an average of 299 charge and discharge cycles per year in 2025, which is more than double the 2022 levels. Co-located systems, which integrate batteries with wind and solar farms, also saw their utilization more than double.
This surge in activity is detailed in a report by the energy and climate think tank Ember. Ember analyst Biqing Yang noted the substantial improvement in these metrics. The policy changes, which began to take significant effect around 2021, aimed to move away from mandatory allocation policies towards a more market-oriented system. For instance, a mandate requiring new wind and solar projects to include energy storage ended in February 2025, encouraging storage providers to compete in an open market.
The growth in China’s energy storage sector has been explosive, with total installed capacity more than doubling year-on-year in 2024, reaching 62 GW/141 GWh by the end of that year. By December 2025, China’s cumulative installed capacity of new energy storage technologies, including lithium-ion batteries, reached 144.7 GW, an 85% year-on-year increase. This rapid expansion and improved utilization are crucial as China aims to integrate its massive renewable energy production and enhance grid stability.