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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.