Construction Of A Grid-Type Compressed Air Energy Storage in China

3 September 2025

A large-scale grid-type compressed air energy storage (CAES) is under construction in the Bayanhua area of ​​Inner Mongolia. The project is being implemented by Shenzhen Energy.

Main project parameters

  • Capacity: 3 units of 350 MW (total 1050 MW).
  • Capacity: 4200 MWh.
  • Investment: 7.4 billion yuan.
  • Generation: about 1.4 billion kWh per year for smoothing peak loads.

Technical characteristics:

  • Compression mode – up to 6.5 hours.
  • Generation mode – up to 4 hours.
  • System efficiency is more than 65%.

Development of GPS in China

In 2024, 42 GW of new energy storage capacity was introduced in the country. The total installed capacity of pneumatic PV systems has exceeded 74 GW.

Technologies:

  • Lithium-ion batteries remain the main focus.
  • The share of non-lithium technologies (including pneumatic systems) is gradually increasing.

Other pneumatic PV systems projects

Shandong (China Energy Construction Digital Group and Shandong Guohui)

  • Planned capacity: 3060 MW.

Commissioned facility (January 2024)

  • Capacity: 300 MW, capacity: 1500 MWh.

Features of pneumatic PV systems

  • Use compressed air to store energy.
  • Suitable for long-term storage.
  • Dependent on geological conditions (e.g. the presence of underground reservoirs).

China continues to develop energy storage technologies, including both lithium-ion and alternative solutions such as CAES.

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