China Commissions World’s Largest Compressed-Air Energy Storage Plant

China has begun operations at the world’s largest compressed-air energy storage (CAES) power plant in Jiangsu province, marking a significant milestone in the country’s green energy transition. The project strengthens China’s ability to balance rising renewable power generation with stable electricity supply.

Project Scale and Location

The facility, located in central Jiangsu, has a storage capacity of 2,400 megawatt hours and an installed power generation capacity of 600 megawatts. According to Harbin Electric Corporation, which participated in the project’s construction, the plant can meet the annual electricity needs of around 600,000 households, making it the largest CAES project globally in both scale and output.

How Compressed-Air Energy Storage Works

Compressed-air energy storage systems operate by using surplus electricity, typically generated at night, to compress air and store it in underground caverns. During periods of high demand, the compressed air is released, driving turbines to generate electricity. This technology provides long-duration energy storage and supports grid stability when renewable sources such as wind and solar fluctuate.

Role in China’s Green Transition

According to BloombergNEF, CAES is currently among the most cost-effective solutions for long-duration energy storage. China’s rapid expansion of renewable energy capacity has intensified the need for large-scale storage technologies beyond conventional batteries. The commissioning of this plant highlights Beijing’s focus on diversifying storage options to ensure energy security while reducing carbon emissions.

Important Facts for Exams

• Compressed-air energy storage uses underground caverns for large-scale electricity storage.
• China has set a target of adding over 180 GW of new energy storage capacity by 2027.
• CAES is considered suitable for long-duration storage compared to lithium-ion batteries.
• Energy storage is critical for integrating variable renewable energy into power grids.

Growth of China’s Energy Storage Sector

China’s energy storage sector has expanded rapidly alongside its renewable energy build-out. Government targets aim to add more than 180 gigawatts of new storage capacity by 2027, encouraging investment in batteries and alternative technologies such as compressed air. The Jiangsu project underscores China’s leadership in deploying large-scale storage solutions to support its low-carbon energy system.