Industry Observation: The New Energy Storage Industry Shifts from "Following" to "Leading"

Ask AI · How can the capacity electricity pricing mechanism bring stable expectations for energy storage investments?

People’s Daily reporter Yang Xi

More than 800 exhibitors and six themed exhibition halls showcased advanced technologies and products in a concentrated display, including solid-state batteries, AI large models, and high-capacity battery cells. At the 14th International Energy Storage Summit and Exhibition (ESIE 2026), held recently, key players across the global energy storage industry chain gathered in one place, becoming an important window for observing the development of China’s new-type energy storage industry.

Driven by the continual improvement of policy frameworks, breakthroughs in technological innovation, and a surge in market demand, China’s new-type energy storage industry is now deeply integrating into the construction of a new power system, serving as an important support for renewable energy utilization and green, low-carbon development.

The “Energy Storage Industry Research White Paper 2026,” released at the conference by the Zhongguancun Energy Storage Industry Technology Alliance (CNESA), states that by the end of 2025, China’s cumulative installed capacity of new-type energy storage reached 144.7GW. For the first time, it accounted for more than half of the global market share, reaching 51.9%, indicating that China’s energy storage industry has grown from “following” to becoming the “leading” player in the global market.

In terms of installed capacity structure, new-type energy storage accounts for more than two-thirds of the total domestic power energy storage scale, which is up 45 times compared with the end of the “13th Five-Year Plan.” In 2025, the newly commissioned and operational scale reached 66.4GW/189.5GWh. Power scale and energy scale increased year over year by approximately 52% and 73%, respectively, ranking first globally for four consecutive years.

Worth noting is that this growth rate was achieved against the backdrop of policy guidance shifting from “mandatory capacity allocation for storage” to “market-based utilization of storage,” indicating that the industry’s intrinsic momentum is strengthening and that market mechanisms are beginning to play a dominant role.

At the beginning of 2025, the National Development and Reform Commission and the National Energy Administration issued the “Notice on Deepening the Market-Oriented Reform of Feed-in Electricity Prices for New Energy to Promote High-Quality Development of New Energy,” which removed the requirement for new energy projects to allocate storage on a mandatory basis, moving energy storage from a “cost item” under administrative orders to a “value item” in market-based competition.

Since this year, the policy “steering wheel” has continued to play a role. In January 2026, the National Development and Reform Commission and the National Energy Administration jointly issued the “Notice on Improving the Capacity Electricity Pricing Mechanism on the Generation Side.” For the first time at the national level, it clearly established an independent new-type energy storage capacity electricity pricing mechanism on the grid side. This policy has been dubbed a “cushion” by industry insiders, providing energy storage power stations with stable expectations of returns and effectively stimulating the investment enthusiasm of social capital.

Listed company performance confirms this trend. According to statistics from The Securities Times, as of early April 2026, using the lower bound of attributable net profit calculated from 2025 annual reports, performance briefings, and profit forecasts, there were 23 energy storage concept stocks whose attributable net profit in 2025 increased year over year (including turning losses into profits). The overall profitability of the energy storage industry chain is improving.

As the diversified revenue model of “electricity energy + capacity compensation + ancillary services” is gradually put into place, the profit model of energy storage projects is becoming increasingly clear. Liu Deshun, chief engineer of the National Energy Administration, said at the “ESIE 2026” conference that it will accelerate the improvement of the market mechanisms for new-type energy storage, refine the capacity electricity pricing mechanism for new-type energy storage, orderly establish a reliable capacity compensation mechanism, and guide the rational development of new-type energy storage.

Looking ahead to the next phase, multiple research institutions hold a positive outlook for the energy storage industry in 2026.

A research report released by Industrial Securities argues that in 2026, sentiment across all sub-sectors of the energy storage market will move upward. With the policy on energy storage capacity electricity pricing taking effect, the industry will accelerate growth by leveraging the three-fold dividends of policy, rigid demand, and economic viability. In particular, it is worth paying close attention to the fact that, amid the scaled development of AI data centers, energy storage is becoming a key support for ensuring their stable operation.

In its “Global Technology Report 2026: Insights into the Energy Industry,” KPMG points out that new-type energy storage and all-solid-state battery fields will see a surge. From being an auxiliary means, regulating resources will shift to becoming key elements supporting the new power system, and the structure of energy consumption will move toward green energy as the main body.

The Zhongguancun Energy Storage Industry Technology Alliance expects that after a period of explosive growth in the early stage, the industry will enter a phase of switching growth rates, but the large base will still generate substantial absolute incremental growth.

Looking toward the “15th Five-Year Plan period,” as power market-oriented reforms advance further and multiple technology routes continue to break through, new-type energy storage is expected to play an increasingly important role in ensuring energy security and promoting the green, low-carbon transition.