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Steady policy support needed for sustainable ES growth in China

The China Energy Storage Alliance (CNESA) is a non-profit grade 5A China Social Organization dedicated to the international energy storage industry. It is committed to the healthy development of the industry through positive influence of government policy and promotion of storage applications. George Dudley, International Engagement Manager & Research Manager – CNESA, tells ETN about China's policy advancements, energy sector reforms and ES projects.

George Dudley, International Engagement and Research Manager, CNESA

How do you describe the status of energy storage in your region? What are the drivers and challenges?

China's energy storage industry is currently in a transitional stage, where we are seeing a move from primarily demonstration projects to more commercialized projects. Despite having one of the world's largest installed energy storage capacities, energy storage in China still faces many challenges due to the lack of a market mechanism, insufficient policy support, and the need to clearly define an identity for energy storage technologies. Despite these challenges, both the grid and government regulators have begun to recognize the importance of energy storage, and we are beginning to see greater policy support at the regional and national levels.

What has been the progress with respect to the adoption of energy storage in the region?

China is a world leader in energy storage capacity, with over 1.7GW of operational electrochemical energy storage as of 2019 end. Applications vary by region. I&C applications are found primarily in industrial areas such as Jiangsu province, and in the commercial centers of the Beijing-Hebei region. Renewable integration applications are growing in the west, where large-scale solar generation is installed. Stationary energy storage capacity continues to see steady growth, but can be sensitive to sudden policy changes. China will soon see the release of its 14th five-year plan, covering the 2021-2025 period. We expect to see energy storage incorporated as part of the plan's energy strategy, which will help promote greater use of storage at the national level. 

Author : IESA Admin
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