In the current global energy landscape, the energy development situation is facing profound changes and challenges. With the intensification of global climate change and energy crises, countries around the world have successively set carbon neutrality goals and are promoting the green transformation of the energy structure. As a key solution to the intermittency and instability of renewable energy, the importance of new energy storage technologies is becoming increasingly prominent. The International Energy Agency (IEA) has pointed out in its reports that China, as one of the world's largest energy producers and consumers, plays an important role in the stability and development of the global energy market.
In recent years, the national level has introduced a series of policies and plans aimed at promoting the rapid development of the new energy storage industry. The development of energy storage, especially vanadium redox flow batteries (VRFBs) and other flow battery technologies, has received strong support from the national level. Central ministries and local governments have successively introduced multiple policies to promote the research and development and commercialization of related technologies. These policies cover multiple aspects, including R&D subsidies, support for demonstration projects, and the formulation of market access standards, creating a favorable policy environment for the development of the flow battery industry. In addition to national policies, local governments in Shandong, Hebei, Guangdong, Anhui, Shaanxi, Henan, Inner Mongolia, and other provinces have also introduced relevant policies to support the development of the energy storage and flow battery industry through the release of energy storage development plans, establishment of special funds, and provision of tax incentives. These policies not only help reduce enterprise costs and enhance market competitiveness but also promote the coordinated development of upstream and downstream enterprises in the industrial chain.
2024 Timeline of Flow Battery Policies:
January: The National Energy Administration issued Announcement No. 1 of 2024, organizing the application and evaluation of pilot and demonstration projects for new energy storage. A total of 56 new energy storage pilot and demonstration projects were announced: 17 lithium-ion battery energy storage projects, accounting for over 30%; 11 compressed air energy storage projects, accounting for nearly 20%; and 8 flow battery energy storage projects, accounting for over 14%. In terms of geographical distribution, Hubei Province has the most projects, with 6; other provinces with a relatively high number of projects include Shandong, Jiangsu, Hunan, and Hebei, each with 4.
March: For the first time, the development of new energy storage was included in the government work report. Premier Li Qiang, in the second session of the 14th National People's Congress, emphasized the importance of new energy storage technologies, thereby accelerating the development of the industry. Meanwhile, the Political Bureau of the CPC Central Committee, in an energy-related meeting, proposed leveraging the national system's advantages to intensify technological breakthroughs in long-duration energy storage, with flow batteries being a significant direction in this regard.
May: The Department of Economic and Information Technology of Sichuan Province and five other departments released the "Implementation Plan for Promoting the High-Quality Development of Vanadium Battery Energy Storage Industry." This was the first national policy specifically targeting the vanadium redox flow battery industry, focusing on pilot demonstrations, technological innovation, and cost reduction to drive the development of the flow battery sector.
July:Vice Administrator of the National Energy Administration, Wan Jinsong, published "Pushing for High-Quality Development of New Energy with Greater Intensity." The article emphasized the importance of advancing energy technology innovation, leveraging China's large-scale market and complete industrial system to implement key research and development programs, and supporting platforms for new energy key common technologies. It highlighted the need to focus on the research and innovation of large-scale wind turbines, flexible DC transmission, smart grid technologies, and energy storage technologies such as flow batteries and compressed air.
The Development and Reform Commission of Shandong Province and the Energy Bureau of Shandong Province, along with 17 other departments, jointly issued the "Guiding Opinions on Accelerating the High-Quality Development of New Energy Storage Industry." The focus was on breaking through low-cost, high-efficiency flow battery energy storage technologies, supporting multiple technical routes, and accelerating the large-scale production of vanadium redox flow batteries while promoting the pilot production of iron-chromium and zinc-iron flow batteries.
August: The National Development and Reform Commission, the National Energy Administration, and the National Data Bureau jointly released the "Action Plan for Accelerating the Construction of a New Power System (2024–2027)." The plan clarified the application of flow batteries in long-duration energy storage and encouraged the exploration and construction of flow battery energy storage power stations, providing a clear market orientation for the research and application of flow battery technologies.
November:The Ministry of Industry and Information Technology publicly sought opinions on the "Action Plan for High-Quality Development of New Energy Storage Manufacturing Industry (Draft for Comments)." The plan aimed to promote the engineering and application technology breakthroughs of sodium batteries, flow batteries, and other new energy storage technologies. In the field of flow batteries, it focused on key material technologies such as flow battery stacks, bipolar plates, electrolytes, and ion exchange membranes to enhance the energy efficiency, system reliability, and lifecycle economic viability of flow batteries.
The "Energy Law of the People's Republic of China" was promulgated and came into effect on January 1, 2025. In terms of energy storage, the law emphasized the rational layout and orderly development of pumped-storage power stations and the promotion of high-quality development of new energy storage, highlighting the regulatory role of various energy storage technologies in the power system.
Policy Keywords:
Self-reliance of the Industrial Chain: China has already formed a complete industrial chain for flow battery energy storage, which is gradually transitioning from the exploration and cultivation phase to the development and promotion phase. Vanadium redox flow batteries, in particular, have significant technical and industrial advantages. Technologically, vanadium redox flow batteries are intrinsically safe, have an ultra-long lifespan, and are environmentally friendly. Their aqueous electrolyte solution poses no risk of combustion or explosion, and there is no risk of thermal runaway under normal temperature and pressure conditions. Their lifespan can reach up to 25 years, matching the operational period of wind and solar power generation. Moreover, the electrolyte can be recycled indefinitely, and the materials used in the battery system are easy to handle, resulting in low lifecycle environmental impact. Additionally, they can be deeply charged and discharged, meeting the flexible dispatch requirements of the power grid. From the perspective of the industrial chain, China has identified vanadium resources reserves of 68.745 million tons, accounting for 37% of the global total, with vanadium production accounting for 48% of the global output. In terms of vanadium redox flow battery technology, China has established a complete system of independent intellectual property rights and is capable of leading the formulation of international and national standards. Key materials such as battery stacks and electrodes have also been domesticated.
Promoting Key Material Technology Breakthroughs: High-performance, low-cost key materials are crucial for the industrialization of flow batteries. Policies encourage continuous breakthroughs and innovations in the design and preparation of key materials, stack structure design, batch integration technology, and system design integration to enhance the energy efficiency, system reliability, and lifecycle economic viability of flow batteries.
Cost Diversification: Policies encourage flow batteries to gain revenue through participation in spot markets and ancillary service markets. Meanwhile, several provinces have begun exploring the establishment of independent energy storage capacity pricing compensation mechanisms to compensate for the fixed costs of energy storage. For example, Shandong Province has stipulated that flow battery power stations can participate in power transactions at double capacity, with capacity calculation linked to discharge duration. These policy trends indicate that efforts are being made to diversify the costs of flow batteries through market and pricing mechanisms, promoting the healthy development of the energy storage industry.
Expanding Multi-Scenario Applications: The national policy orientation has clearly supported the innovative development of new energy storage technologies that are high in safety, large in capacity, low in cost, and long in lifespan. Although China has already formed a relatively complete industrial chain for flow battery energy storage, there is still considerable room for improvement in terms of technological level, standard system perfection, cost reduction, and application scenario expansion.
In 2024, with the transformation of the energy structure and the deepening of the power market, energy storage flow batteries have not only made significant progress in technological innovation and industrial upgrading but have also achieved comprehensive breakthroughs in market demand, policy support, and industrial chain collaboration. From laboratory research results to the commercialization of applications, from the breakthrough of a single energy storage technology to the innovative practice of hybrid energy storage systems, the energy storage flow battery industry is developing at an unprecedented speed, injecting strong momentum into the global optimization and green, low-carbon transition of the energy structure.
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