China Encouraged to Transition from Coal to Battery Storage Following California's Model
China is encouraged to shift from coal to battery storage, inspired by California's success, where batteries now account for 25% of peak demand. With the U.S. battery storage market growing over 60% annually, China could meet 60% of its flexibility needs through this technology by 2030, provided it enhances market mechanisms and battery utilization. This transition could position China as a leader in battery technology while significantly reducing reliance on fossil fuels.

China is urged to transition from coal-based power to battery storage, following California's significant progress in this area. In California, batteries now supply about one-quarter of peak demand, with the state's battery fleet discharging a record 11.2 GW during peak hours in August 2025.
The US has seen battery storage grow over 60% annually, reducing reliance on fossil fuel-powered peakers, which are costly and heavily polluting. With 150 GW of peak capacity expected to retire in the US in the next 15 years, batteries present a viable alternative.
California aims to add 15.7 GW of four-hour and 2.8 GW of eight-hour batteries, cutting natural gas use by 70% by 2035. China, already the largest battery market, could meet 60% of its flexibility needs through battery storage and demand response by 2030. To facilitate this shift, China must strengthen market mechanisms and increase battery utilization, positioning itself as a leader in battery technology.




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