Mainland China accounts for most of the global energy storage demand, driven in the near term by regional requirements for new utility-scale wind and solar projects to include energy storage capacity. However, the Chinese market is entering an era of change.
Providing valuable policy implications for the development of energy storage and demand response in China. Energy storage and demand response offer critical flexibility to support the integration of intermittent renewable energy and ensure the stable operation of the power system.
In 2022, 194 electrochemical storage stations were put into operation, with a total stored energy of 7.9GWh. These accounted for 60.2% of the total energy stored by stations in operation, a year-on-year increase of 176% (Figure 4).
The utilization of demand response is offset by the more cost-effective flexibility options provided by energy storage, leading substitution between energy storage and demand response. Nevertheless, as demand response capacity and time period increase, demand response grows rapidly.
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