Cushman & Wakefield has released its China Battery Energy Storage System (BESS) Market – New Energy for a New Era report.
A Battery Energy Storage System (BESS) secures electrical energy from renewable and non-renewable sources and collects and saves it in rechargeable batteries for use at a later date. When energy is needed, it is released from the BESS to power demand to lessen any disparity between energy demand and energy generation.
BESS types include those that use lead-acid batteries, lithium-ion batteries, flow batteries, high-temperature batteries and zinc batteries.
In terms of BESS infrastructure and its development timeline, China’s BESS market really saw take off only recently, in 2022, when according to the National Energy Administration (China) and China Energy Storage Alliance (CNESA) data, new energy storage capacity reached 13.1GW, more than double the amount reached in 2021.
Ahead and heading into a new era for new energy, it is expected that China’s energy storage capacity and its BESS capacity in particular will grow at a CAGR rate of 44% between 2023 and 2027.
Shaun Brodie, Head of Research Content, Greater China, and author of the report, said, “China is committed to steadily developing a renewable-energy-based power system to reinforce the integration of demand- and supply-side management. An augmented focus on energy storage development will substantially lower the curtailment rate of renewable energy and add tractability to peak shaving, contributing to coal use reduction in China.”
Henry Zhang, Senior Director, Consulting, South China, and author of the Chinese language version of the report, said, “Under China’s dual-carbon strategy, it is also imperative to adjust the global energy structure. Energy storage plays a role in multiple scenarios. Increased demand will spur explosive growth in energy storage mechanisms. Industrial and commercial energy storage, together with household energy storage, will maintain a high growth rate and is set for sustained future expansion. In order to cope with different needs in different application scenarios, energy storage technology routes are developing along diversified paths. Looking ahead, each locality will need to consider its own industrial foundation to identify the optimal technical path for different application scenarios.”
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