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Friday, May 09, 2025

China Accelerates Development of Pumped-Storage Power Stations to Address Energy Demand

China Accelerates Development of Pumped-Storage Power Stations to Address Energy Demand

New projects in Shanxi Province and beyond aim to enhance energy stability and support renewable sources.
In Daixian County, located in north China's Shanxi Province, the construction of a new pumped-storage power station with an installed capacity of 1.4 million kilowatts is set to commence in June 2024. The project, which entails an investment of 10.99 billion yuan (approximately 1.53 billion U.S. dollars), aims to support the increasing energy generation from renewable sources in the region.

Li Zhitao, the deputy general manager of Shanxi Daixian Zhenghuaneng Energy Development Co., Ltd., indicated that the construction period will span 72 months, with the facility anticipated to produce an annual full-capacity output of 2.98 billion kilowatt-hours upon completion.

As of the end of 2023, the total installed capacity for new and clean energy in three northern Shanxi cities reached nearly 31 million kilowatts.

Pumped-storage power stations are crucial for balancing the variability inherent in wind and solar energy generation, ensuring the stability of the power grid and minimizing the waste of renewable energy.

Industry expert Cai Pin emphasized the advantages of pumped-storage technology, including longevity, established technology, substantial capacity, and cost-effectiveness, positioning it as a primary solution for energy storage.

China is pursuing ambitious energy goals, including achieving carbon peak and developing a power system predominantly reliant on renewable energy.

The National Energy Administration recently released figures forecasting that by the end of 2024, solar power capacity will reach around 890 million kilowatts, representing a 45.2 percent rise year-on-year.

Wind power capacity is expected to increase to approximately 520 million kilowatts, marking an 18 percent growth.

The demand for new energy infrastructure has catalyzed a surge in investments in pumped-storage power stations within the nation.

Official reports indicate that by the close of 2024, China's cumulative installed pumped-storage capacity will have exceeded 58 million kilowatts, reflecting a positive growth trend within the industry.

According to Le Zhenchun from the State Grid, the annual power generation growth rate for pumped-storage stations has remained above 18 percent since 2021, with an average of 28 billion kilowatt-hours of new energy being effectively integrated annually.

Although China maintains the largest pumped-storage capacity worldwide, experts suggest that reliance on the State Grid alone is insufficient to address the escalating market demand.

In response, the government has initiated policies to expedite the development of these energy solutions.

In addition to the 10 planned pumped-storage stations in Shanxi, other Chinese provinces are advancing their own projects to expand the network of such facilities.

The national medium- and long-term plan for the sector outlines a vision for 340 key projects, targeting a total planned capacity of approximately 420 million kilowatts by 2035, with an operational capacity goal of around 120 million kilowatts by 2030.

As renewable energy installations extend into desert and offshore regions, the scope of pumped-storage initiatives is also expected to broaden.

Cai noted that innovations such as distributed pumped storage and seawater-based pumped storage technologies will significantly contribute to facilitating China's dual carbon objectives.
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