China Sees Surge in 100MWh Vanadium Flow Battery Energy Storage Projects
Date: 30 Aug 2024 |
August 30, 2024 – The flow battery energy storage market in China is experiencing significant growth, with a surge in 100MWh-scale projects and frequent tenders for GWh-scale flow battery systems. Since 2023, there has been a notable increase in 100MWh-level flow battery energy storage projects across the country, accompanied by multiple GWh-scale flow battery system tenders being announced.
This surge in tender capacities for flow batteries is accelerating the industrialization of the flow battery sector. In 2024, the planned investments in the flow battery industry are expected to exceed 33.7 billion RMB, with a production capacity target of 48 GWh.
Recent Major Tenders Highlight Market Growth
The flow battery energy storage market has witnessed robust growth in recent years, highlighted by a series of significant GWh-scale project tenders. These tenders underscore the widespread recognition and anticipation of flow battery technology within the market. To date, four major tenders have garnered extensive attention:
- September 2022, CNNP Rich Energy Comprehensive Procurement: This tender involved the procurement of a 1GWh vanadium flow battery energy storage system, covering various scales from 1MW/4MWh to 200MW/800MWh. Several companies were awarded contracts, with unit prices ranging from 2.2 to 3.62 RMB/Wh.
- September 2023, State Power Investment Corporation (SPIC) Tender: This tender included a 1GWh flow battery energy storage system, with winning bidders such as Shanghai Electric. Unit prices ranged from 2.38 to 2.836 RMB/Wh.
- November 2023, CNNP Rich Energy New Procurement: This tender again sought 1GWh of vanadium flow battery energy storage systems, with more refined unit pricing as low as 2.46 RMB/Wh.
- March 2024, CNNC Xinhua Hydropower Procurement: An estimated procurement of 1.2GWh, including various charge-discharge rate vanadium flow battery systems, attracted multiple well-known companies.
It is noteworthy that the vanadium flow battery, currently the most mature flow battery technology, dominated these tenders. Except for SPIC, all other projects explicitly specified vanadium flow battery systems. The majority of these tenders were organized by subsidiaries of CNNC, showcasing CNNC's proactive stance and significant influence in the flow battery energy storage sector.
Emergence of 100MWh-Level Flow Battery Energy Storage Stations
With the increasing frequency of large-scale procurements, 100MWh-level flow battery energy storage projects are rapidly emerging across China. Currently, there are nearly 30 projects of this scale that are either registered or in the planning stages nationwide, with a total capacity exceeding 4GW/18GWh. This trend signifies a rapid development phase for flow battery technology.
In terms of regional distribution, Xinjiang and Sichuan have become hubs for 100MWh-scale flow battery energy storage projects. Xinjiang's interest is driven by the need for large-scale, long-duration energy storage to support its renewable energy bases, while Sichuan focuses on supporting the local vanadium battery supply chain to promote rapid growth in its flow battery storage industry.
Key projects include the 300MW/1.8GWh storage project in Lijiang, Yunnan; the 200MW/1000MWh vanadium flow battery storage station in Jimusar, Xinjiang by China Three Gorges Corporation; and the 250MW/1GWh vanadium flow battery energy storage project in Chabuchaer County, Xinjiang by China Energy Conservation and Environmental Protection Group. These projects not only demonstrate the competitiveness of flow battery energy storage technology in the market but also indicate a broad potential for future growth.
Future Outlook and Technological Synergies
Flow battery energy storage technology is increasingly being integrated with other storage methods, such as lithium batteries, compressed air, sodium batteries, and flywheels, forming hybrid energy storage systems. This hybrid approach offers distinct advantages in terms of cost competitiveness, system flexibility, and reliability compared to standalone storage solutions. Looking ahead, as hydrogen technology continues to advance, combining long-duration energy storage with other assets will become more cost-effective, providing strong support for energy transition and enhancing the flexibility of the power system.