China's Energy Storage Sector Adapts Post-Mandate Amid Export Growth
After the February 2025 mandate removal requiring energy storage for new wind and solar projects, China's energy storage sector has seen stable growth, with exports rising 24% year-on-year. By September 2025, the installed capacity reached 100 gigawatts, over 40% of the global total. However, challenges remain in profitability and competition in the market, particularly with trade barriers impacting exports, primarily to the US and EU, while opportunities arise in Southeast Asia and the Middle East.
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In February 2025, China ended the requirement for new wind and solar projects to include energy storage, prompting storage providers to compete in the open market. Despite this, energy storage growth remained stable, with exports increasing 24% year-on-year.
By September 2025, installed capacity reached 100 gigawatts, marking significant growth. The sector faces challenges, including low utilization rates and profitability concerns amid geopolitical tensions.
Three income sources for energy storage include energy arbitrage, ancillary services, and capacity payments. Chinese firms signed 308 export deals in 2025, primarily with Europe, Australia, and the Middle East, although competition and pricing pressures pose risks to profitability.
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