从规模到系统：指引中国电池储能的下一阶段发展

A major shift is now unfolding across China’s batteryenergy storage sector, as the industry transitions frompolicy-driven capacity expansion to an increasinglymarket-tested system integration. Published date: 16 July 2026Lead author: Biqing Yang Contents Contents1 About2 Executive summary Chapter 1: From the scale 1.1 China’s BESS outgrows all other countries combined71.2 China’s battery additions outpace its record-breaking solar growth91.3 Co-location requirements provided the first push for China’s BESS growth101.4 The shift to revenue stacking in China’s BESS market13 Chapter 2: To the system 20 2.1 Shifting application structure in China’s BESS fleet212.2 Utilisation is rising, but co-located BESS still lags standalone systems222.3 Shifting to market-led expansion and unlocking the system value ofBESS25 Supporting materials Methodology29Acknowledgement31 About China accounted for more than half of the global battery energy storage system(BESS) capacity by the end of 2025. As mandates to co-locate storage withrenewable energy phase out, the sector is entering a more market-driven phase.This report examines how China’s BESS fleet is deployed, quantifies utilisation,and assesses the flexibility that market reforms could unlock from existing assets.New market mechanisms are emerging to reflect the multiple values thatbatteries provide to the power system, making revenue stacking central to thenext stage of China’s BESS development. Key highlights 100 cycles23 TWh 150 GW The 2025 utilisation shortfallof China’s renewableco-located battery storagecompared to standalonesystems, highlighting thelimits of mandate-drivenscale-up. By the first quarter of 2026,China’s total installedlithium-ion battery energystorage capacity reachedalmost 150 GW. The extra amount ofrenewable generation thatcan be shifted byutility-scale battery energystorage, solely byoptimising the utilisation ofbatteries. Executive summary Beyond gigawatts:China’s BESS shifting towards amarket-driven future In 2025, China’s total battery energy storage systems (BESS) capacity surpassedthat of the rest of the world combined. Beneath this headline growth, thecountry’s battery sector is entering a new phase, shifting from rapid deploymenttowards effective market integration and maximising system value. When national wind curtailment surged past 17% in 2016, Chinese provinces,among other measures, required new renewable projects to co-locate energystorage. This policy effectively helped keep curtailment in check and drove thecountry’s BESS installation boom. However, batteries can provide far more system value than the current marketcontext allows co-located projects to deliver. As theenergy system’s ultimatemultitool, batteries shift renewable generation across time and location, providecrucial ancillary services for grid stability, and offer emergency support. Because their operation and finances were tied behind the meter of their parentprojects, co-located BESS has seen lower utilisation than standalone systems. Incontrast, standalone assets can operate as independent market entities andrespond directly to system-wide conditions. Two major recent policies have reinforced this transition: the end of mandatorystorage co-location in 2025 and the expansion of capacity remuneration toinclude BESS in 2026. This marks a deliberate shift from administrative mandatesto market signals as the sector's emerging driver. As a result, recent growth in standalone BESS has significantly outpaced that ofco-located projects. Meanwhile, utility-scale BESS utilisation is beginning to catchup with capacity expansion. To sustain development moving forward, the sector requires diverse revenuestreams that reflect its true system value, enhanced revenue stacking to ensurecommercial viability, stronger market signals to guide planning, and a clearregulatory framework tailored to the bi-directional nature of BESS. 01 Renewable co-location mandates were central to China’s battery boom Mandatory energy storage co-location for new wind and solar projects played animportant role in reducing renewable curtailment in China – from over 17% in 2016 tobelow 5% between 2022 and 2024, while rapidly scaling up the battery fleet. 02 China’s BESS sector is shifting towards a market-driven era As China ends its renewable BESS co-location mandate and expands capacityremuneration to energy storage, fixed revenue streams are being phased out. They arebeing replaced by new market mechanisms that allow for revenue stacking, especiallyas energy arbitrage alone cannot yet support a strong enough business case for BESS. 03 Utility-scale battery utilisation doubled between 2022 and 2025, butco-located assets still lag behind Policy reforms are helping bridge the gap between capacity growth and laggingutilisation. Following these reforms, renewable co-located BESS utilisation rose from 80 to199 cycles, while standalone systems increased from 146 to 299 cycles.