China to Expand Energy Storage Market... 190 Trillion Won Scale by 2030

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[Asia Economy Beijing=Special Correspondent Jo Young-shin] China has unveiled a blueprint to accelerate the construction of a new power system, including establishing a commercialization foundation for new energy storage systems (ESS) during the 14th Five-Year Plan period (2021?2025). The energy storage device market in China is expected to exceed 1 trillion yuan (approximately 190 trillion KRW) by 2030.

Nuclear power plant in Fujian Province, China. Photo by Xinhua News Agency

It will also gradually expand the share of nuclear power generation on the premise of safety.

According to Chinese media including the state-run Xinhua News Agency on the 23rd, the National Development and Reform Commission (NDRC) and the National Energy Administration announced a notice containing plans to promote the development of energy storage devices to achieve carbon peak and carbon neutrality.

Xinhua News Agency noted that the notice clearly includes new construction costs, prices, standards, and development goals for energy storage devices, emphasizing that the Chinese government has revealed key tasks for achieving carbon peak during the 14th Five-Year Plan period.

Chinese authorities have decided to build at least 30 million kW of energy storage systems by 2025. Based on this, they plan to foster China’s energy storage device industry.

Regarding this, Chinese media Caijing pointed out that China’s energy storage device industry has great growth potential but is still in its early stages.

Zhang Jianhong, chief engineer at China International Engineering Consulting Corporation (CICC), explained, "Currently, China’s energy storage device industry is in the early stage of industrialization, with technology and standards not yet mature, and business models not yet established." He added that the government’s blueprint includes measures to improve constraints such as technology and costs.

Wei Zhenhua, deputy director of the Zhongguancun Energy Storage Industry Technology Alliance, said, "With this announcement by the Chinese government, energy storage devices will accelerate their participation as independent entities in the power market," and predicted, "Many new business models related to the industry will emerge."

Caijing emphasized the importance of the government recognizing the value of energy storage and energy storage technology, forecasting that the energy storage device market size will reach 1.2 trillion yuan by 2030.

The state-run Global Times reported that the NDRC and National Energy Administration’s notice includes plans to increase nuclear power capacity to ensure stable energy supply. The media stated that the government is actively promoting the construction of nuclear power plants along the eastern coast on the premise of safety.

Lin Bochong, director of the China Energy Economics Research Center at Xiamen University, explained, "If safety is guaranteed, nuclear energy will partially replace fossil energy." However, Lin added, "Although China’s nuclear technology is advanced and safety can be maintained, nuclear energy should not be widely adopted solely for the purpose of achieving carbon neutrality."

China currently plans to gradually increase the share of nuclear power generation from 4.8% to 5.2% by 2025, 6.4% by 2030, 7.4% by 2035, 8.0% by 2040, 8.4% by 2045, and 8.9% by 2050.

This content was produced with the assistance of AI translation services.