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20 Mar,2026
2026 Two Sessions Set the Tone: New-Type Energy Storage to Be Upgraded from a “Supporting” Component to a Core Pillar of the New Power System
In the 2026 National People’s Congress and Chinese People’s Political Consultative Conference government work report, it was explicitly stated that “new forms of energy storage must be vigorously developed and elevated from a supporting component of the power system to a core pillar,” thereby establishing a new strategic positioning for the development of the energy-storage industry in the inaugural year of the 15th Five-Year Plan. This formulation marks a fundamental shift in the role of new energy storage in China’s energy transition: moving from a supplementary facility that once supported the integration of renewable energy to a central force that ensures the security of the power system and underpins the operation of a grid with a high share of renewables.
According to the National Energy Administration’s “2025 Statistical Bulletin on the Development of New-Type Energy Storage Nationwide,” as of the end of 2025, the nation’s installed capacity of new-type energy storage reached 136 million kilowatts, with a total storage capacity of 351 million kilowatt-hours—an increase of 84% compared with the end of 2024 and more than a 40-fold rise from the end of the 13th Five-Year Plan period, marking leapfrog development. The average storage duration increased to 2.58 hours, and the equivalent utilization hours reached 1,195, up nearly 300 hours from 2024, reflecting a significant enhancement in regulation capability and utilization efficiency.
In alignment with the arrangements made at the Two Sessions, the National Development and Reform Commission and the National Energy Administration jointly issued the “Notice on Improving the Capacity Tariff Mechanism on the Generation Side” (NDRC Price [2026] No. 114), thereby providing institutional safeguards for the pivotal role of new energy storage as a core pillar of the power system from the perspective of the pricing mechanism. The policy explicitly incorporates new energy storage into the capacity tariff framework and, for the first time, establishes an independent grid-side capacity tariff mechanism for energy storage, enabling storage stations to secure stable revenues through the value of their capacity and injecting sustained momentum into the industry’s high-quality development. According to industry data from China Energy Storage Network and ESPlaza Long-Duration Energy Storage Network for February–March 2026, following the implementation of this policy, the scale of domestic tenders for standalone energy storage stations increased by more than 120% year on year, underscoring the continued surge in industry enthusiasm.
Sources: the 2026 Government Work Report for the Two Sessions; the National Energy Administration’s “Statistical Bulletin on the Development of New Energy Storage Nationwide in 2025”; the National Development and Reform Commission and the National Energy Administration’s “Notice on Improving the Capacity Tariff Mechanism on the Generation Side” (NDRC Price [2026] No. 114); and industry data from China Energy Storage Network and ESPlaza Long-Duration Energy Storage Network for February–March 2026.
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