China Expands Subsidies for Battery Storage to Enhance Grid Stability
China's government will expand subsidies for energy storage, including batteries, to support grid projects and promote the green transition. Provinces are instructed to incorporate batteries into a payment program ensuring reliable electricity supply. The policy aims to boost revenues for the battery sector, which is crucial for accommodating renewable energy fluctuations. The first phase of the policy allows batteries to benefit from subsidies alongside coal, with future market competition anticipated based on reliability.
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The Chinese government is expanding subsidies for energy storage, including batteries, to bolster grid stability and promote renewable energy. For the first time, provinces are required to include batteries in a payment program designed to ensure reliable electricity supplies.
This initiative aims to provide financial support for struggling grid projects and stimulate growth in the battery sector, which is essential for managing fluctuations in renewable energy generation. The policy's first phase allows batteries and other energy storage options to receive subsidies alongside coal.
Future phases may introduce competition based on reliability rather than capacity. National energy storage installations reached 183 gigawatt-hours in 2025, surpassing expectations due to capacity payments in western China.
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