Assessing Generation-Side Energy Storage's Comprehensive Value and Policy Support Needed for Scale-up Under China’s Dual Carbon Goals


To achieve China's carbon emissions peaking and carbon neutrality goals, it is imperative for the power industry to transition towards a renewable energy-dominated power system. A key enabler in this transition is energy storage, which plays a crucial role in addressing the power balance challenges arising from the variability and intermittency of renewable energy sources. Therefore, CNESA and NRDC jointly carry out energy storage study, which aims to facilitate the large-scale development of energy storage through a comprehensive evaluation of its value within the power system and an analysis of supportive policy options. 

We first assessed the technical suitability and overall value of generation-side energy storage in three representative scenarios. We then conducted field investigations on the development of new energy storage systems in four typical provinces to gain valuable insights. Through these steps, our study analyzes difficulties including low utilization rates, poor economic viability, and cost recovery, and summarizes challenges faced by generation-side energy storage in terms of techno-economic viability, fire safety, and marketization. Finally, it provides policy recommendations for the scale-up and market development of generation-side energy storage. 

The report is only available in Chinese.