China's 15th Five-Year Plan Embraces CAES and Massive VRFB Projects

China's 15th Five-Year Plan Embraces CAES and Massive VRFB Projects

China is significantly expanding its long-duration energy storage (LDES) portfolio through strategic policy directives and massive infrastructure investments. The recently outlined '15th Five-Year Plan for Oil and Gas Development' explicitly includes compressed air energy storage (CAES) for the first time, signaling a major shift in the nation's energy storage strategy.

Repurposing Depleted Oil and Gas Reservoirs

The new policy proposes utilizing the vast underground spaces of depleted oil and gas reservoirs for CAES construction. The potential scale of this resource is staggering; depleted oil reservoir spaces across China are equivalent to about 1,000 Three Gorges Reservoirs, capable of storing roughly 1 billion kWh of electricity. This initiative highlights a profound transition of traditional oil and gas fields into comprehensive energy service providers integrating power, heat, storage, and carbon management.

"Depleted oil reservoir spaces across China are capable of storing roughly 1 billion kWh of electricity."

Currently, the momentum behind CAES is already substantial, with over 5 GW under construction and over 36 GW in the preparation phase nationwide. This policy inclusion will further accelerate project approvals and investments in this mechanical LDES technology.

Record-Scale Vanadium Flow Battery in Yunnan

Alongside CAES, China continues to aggressively deploy electrochemical LDES. A landmark 300MW/1200MWh vanadium flow battery project was recently signed in Yunnan province. With a total investment of 1.5 billion RMB, the Yunnan Lincang Gengma independent battery energy storage project features a 4-hour duration. This marks the largest new shared energy storage scale in Yunnan for 2026, underscoring the country's commitment to diversifying its storage mix with safe, long-lasting flow battery technology.

Together, these policy frameworks and mega-projects demonstrate China's comprehensive approach to grid decarbonization. By leveraging both mechanical and electrochemical LDES technologies, the nation is building a highly resilient, multi-day storage infrastructure capable of supporting its massive renewable energy expansion.

This article was assisted by AI analysis. Please refer to the original source for official information.