Major Iteration in Energy Storage Technology in 2026: Long-Duration, Grid-Forming, and Diversification as the Three Main Trends

In 2026, the global energy storage industry will enter a critical phase of technological iteration. According to the “2026 Energy Storage Industry Technology White Paper” published by the China Chemical and Physical Power Sources Association, long-duration storage, grid-forming capabilities, and diversification have emerged as the three core pillars driving the development of energy storage technologies, with technological innovation reshaping the competitive landscape of the industry.

Long-duration energy storage is the core focus of this round of technological advancement. As the share of new-energy capacity continues to rise, the power system’s need for long-duration peak-shaving and interseasonal energy storage is becoming increasingly urgent. According to the white paper, by 2026, long-duration storage projects (with discharge durations of at least four hours) planned or under construction in China will account for 65% of the total—a 20-percentage-point increase from 2025. Long-duration storage technologies such as flow batteries, sodium-ion batteries, and all-vanadium redox flow batteries are accelerating their commercialization, with costs having fallen by more than 30% compared with 2023, gradually gaining the competitiveness to rival lithium-ion batteries.

Grid-forming energy storage technology has become a key enabler for the new power system. In its Guidance on Innovation in New Energy Storage Technologies, the National Energy Administration explicitly stipulates that, starting in 2026, all newly commissioned large-scale grid-connected energy storage plants must possess grid-forming capabilities. By emulating the characteristics of synchronous generators, grid-forming energy storage can independently support grid voltage and frequency, thereby addressing the challenge of integrating new-energy power plants into weak-grid environments. Currently, leading domestic companies have achieved large-scale mass production of grid-forming energy-storage systems, which are now widely deployed in regions rich in new energy resources, such as Northwest and North China.

The trend toward diversification of technological pathways is becoming increasingly pronounced. In addition to mainstream electrochemical energy storage, breakthroughs have been achieved in compressed air energy storage, flywheel energy storage, hydrogen-based energy storage, and other technologies. The implementation of GB/T 51048-2025, the “Design Standard for Electrochemical Energy Storage Power Stations,” further provides support for the standardized development of electrochemical energy storage technologies. According to BloombergNEF’s 2026 cost projections, competition among diversified technology pathways will continue to drive down the levelized cost of electricity from energy storage, with the average domestic levelized cost expected to fall below RMB 0.3 per kilowatt-hour by the end of 2026, thereby laying the foundation for the arrival of grid parity in the industry. Data from the China Energy Storage Network’s technical special feature indicate that in the first quarter of 2026, the share of non-lithium-ion battery energy storage projects in total installed capacity had already risen to 12%, signaling the preliminary formation of a diversified technological landscape.

Sources: “2026 White Paper on Energy Storage Industry Technology” published by the China Chemical and Physical Power Sources Industry Association; the National Energy Administration’s Guidelines for Innovation in New-Type Energy Storage Technologies; GB/T 51048-2025, “Design Standard for Electrochemical Energy Storage Power Stations”; BloombergNEF’s 2026 cost estimation; and a technical special feature on China Energy Storage Network.