Battery utilisation gap persists as China ends storage mandate - Asian Power
Published September 20, 2026
Battery Utilisation Gap Persists as China Concludes Storage Mandate
China has recently concluded its storage mandate, a policy aimed at boosting the deployment of energy storage systems across the country. This decision has raised concerns regarding the ongoing battery utilisation gap, which continues to be a significant issue in the renewable energy sector. The mandate was initially introduced to encourage the integration of energy storage solutions in conjunction with renewable energy projects, particularly solar and wind. However, as the policy comes to an end, the implications for battery utilisation are becoming increasingly evident.
According to industry reports, the energy storage market in China has experienced substantial growth in recent years. In 2022 alone, the country installed approximately 30 gigawatt-hours (GWh) of new energy storage capacity, marking a significant increase compared to previous years. However, despite this growth, the actual utilisation of these storage systems has not kept pace. The gap between installed capacity and actual usage raises questions about the efficiency and effectiveness of energy storage solutions in the current energy landscape.
One of the primary reasons for the battery utilisation gap is the lack of a robust regulatory framework that supports the operation of energy storage systems. While the storage mandate provided a temporary boost, its conclusion has led to uncertainty in the market. Industry experts believe that without clear policies and incentives, the deployment of energy storage solutions may stagnate. This could hinder the overall growth of the renewable energy sector in China, which relies heavily on the effective integration of storage technologies.
Furthermore, the financial viability of energy storage projects remains a critical concern. Many storage systems are still perceived as costly investments with long payback periods. As a result, potential investors may be hesitant to commit to energy storage projects, particularly in the absence of supportive policies. The high capital expenditure associated with battery storage systems, coupled with the uncertain regulatory environment, has contributed to the utilisation gap.
In addition to financial barriers, technical challenges also play a role in the underutilisation of energy storage systems. Many existing storage technologies face limitations in terms of efficiency, lifespan, and performance under varying operational conditions. For instance, lithium-ion batteries, which dominate the market, can experience capacity degradation over time, reducing their effectiveness for long-term energy storage. These technical limitations can deter operators from fully utilising their storage systems, further exacerbating the utilisation gap.
Despite these challenges, there are opportunities for improvement in the energy storage sector. Industry stakeholders are increasingly exploring innovative solutions to enhance the performance and reliability of battery systems. This includes advancements in battery chemistry, improved management systems, and the integration of artificial intelligence to optimise storage operations. Such innovations could help bridge the utilisation gap by making energy storage systems more efficient and cost-effective.
Moreover, the global push towards decarbonisation and the increasing demand for clean energy solutions may present new avenues for growth in the energy storage market. As countries around the world implement stricter emissions regulations and transition towards renewable energy sources, the need for reliable energy storage solutions will become even more critical. This trend could drive investment in energy storage technologies, potentially leading to improved utilisation rates.
In conclusion, the end of China's storage mandate has highlighted the persistent battery utilisation gap within the energy storage sector. While the country has made significant strides in installing new capacity, the actual use of these systems remains a challenge. Addressing this gap will require a concerted effort from policymakers, industry stakeholders, and technology developers to create a supportive environment for energy storage solutions. By overcoming financial, regulatory, and technical barriers, the energy storage market in China can realise its full potential, contributing to a more sustainable and efficient energy landscape.
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