China’s First Shared Energy Storage Demonstration Project Integrating Four Storage Technologies Successfully Connected to the Grid
Source: ASIACHEM WeChat, 1 April 2025
The 101MW/205MWh energy storage station project constructed by CHN Energy I&C for the Guoneng Penglai Power Generation Co., Ltd. was successfully connected to the grid on 29 March. This marks the first domestic shared storage demonstration project to integrate four types of new energy storage technologies—lithium iron phosphate, sodium-ion, vanadium flow, and flywheel storage—signaling a transformative step toward high-quality construction and efficient utilization of storage systems.
This project, recognized as a pilot demonstration by the Shandong Energy Bureau, is a pioneering example of diversified storage integration. Highlights include:
- High-Efficiency Lithium Iron Phosphate Cells: Using next-generation 314Ah cells with industry-leading efficiency and cycle life.
- Sodium-Ion Battery Deployment: Featuring a 2.75MW/5MWh system built from China's first mass-produced 180Ah sodium-ion cells.
- Vanadium Flow Storage System: The group’s first 2MW/8MWh system based on 50kW high-power stacks.
- World’s Largest Magnetic Suspension Flywheel: A 12MW/3MWh system composed of three 4MW/1MWh units.

Advanced Safety and AI-Powered Management
Safety remains paramount, with a multi-layered protection framework that includes compressed air foam, water-based fire suppression, perfluorohexanone at the pack level, and advanced BMS-level particle detection. The system can provide a 15-minute early warning window, greatly enhancing operational safety.
On the operations front, the project utilizes CHN Energy I&C’s proprietary platforms for energy management, diagnostics, power trading support, and smart electricity sales. This breakthrough in integrated software enables adaptive, efficient dispatch of diverse energy storage assets. The station is expected to reduce CO₂ emissions by 45,600 tons annually.
In terms of maintenance, an AI-driven diagnostics platform accurately detects issues such as internal short circuits and lithium plating with over 95% accuracy, reducing O&M costs by 20%.
Strategic Impact on China's Energy Transition
This project represents more than a technological milestone—it’s a strategic leap in China's shift toward a renewable energy-based power system. By enabling coordinated innovation across multiple storage paths and promoting large-scale, systemized deployment, the project supports greater flexibility, resilience, and sustainability in the power grid.
As the world accelerates toward renewable energy, long-duration energy storage (LDES) is increasingly vital. Among various technologies, flow batteries—such as vanadium, zinc-bromine, and iron-chromium—stand out for their scalability, safety, and long lifespan. In 2024, China added 0.43GW/1.74GWh of new flow battery capacity, with a market size of approximately 3.8 billion RMB.
ASIACHEM forecasts the global flow battery market to grow from $1 billion in 2025 to $5 billion by 2030, at a compound annual growth rate of 38%. China is poised to lead both in technology and market adoption.