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China Dominates Global Energy Storage Amid Market Reforms
22 Dec
Summary
- Chinese firms lead global lithium-ion battery shipments for storage.
- Market reforms make energy storage profitable for Chinese manufacturers.
- Data centers and renewables drive surging international demand.
Chinese energy storage manufacturers are experiencing unprecedented growth, driven by a global surge in demand and supportive domestic market reforms. These firms are projected to see a 75% increase in worldwide lithium-ion battery cell shipments for energy storage this year, cementing their dominance in a sector crucial for renewable energy integration and AI data centers. International demand is rising due to the expansion of data centers and the need to stabilize aging power grids in regions like Europe.
Reforms implemented in June have significantly improved the economics of operating energy storage plants in China. By shifting from fixed rates to market-based auctions, it has become more profitable to recharge batteries during low-price periods and discharge them during high-price demand. This has led to storage plants operating longer, with average daily operation hours increasing significantly in the third quarter following the policy change.
