China advances energy storage via grid integration and sodium-ion technology

China is advancing its energy storage capabilities through new market regulations in Zhejiang province and significant technological shifts toward sodium-ion batteries. In Zhejiang, independent energy storage systems are now being integrated directly into the power grid. Regulatory authorities have opened the market for direct delivery projects, with a transition to a bidding system based on price and quantity scheduled for January 1, 2027. The initial list includes 40 projects with a total capacity of 2.54 GW and 5.1 GWh, 28 of which are already in commercial operation.

Simultaneously, China is establishing a dominant position in sodium-ion battery technology, which serves as a potential alternative to lithium-ion batteries. While sodium-ion batteries currently have lower energy density, they offer advantages in safety, performance at low temperatures, and faster charging. They are particularly suited for grid storage and data center infrastructure. China has already built a massive industrial lead; according to CRU, China's operating and planned sodium-ion battery capacity exceeds 400 GWh, compared to approximately 11 GWh for the rest of the world.