The energy storage industry has ushered in a definitive golden cycle in 2026. Global newly-installed capacity is expected to exceed 450 GWh, with cumulative installed capacity surpassing 1.14 TWh, marking the official entry into the TWh era. The domestic market maintains strong momentum: sales of domestic energy storage batteries surged by 111.8% year-on-year, and the volume of domestic energy storage system tenders from January to April jumped 132% year-on-year. New installed capacity reached 24.18 GWh in the first two months, a sharp increase of 472% compared with the same period last year. Overseas markets also see robust growth, as Chinese enterprises have secured numerous GWh-level energy storage orders in Australia, Europe, the Middle East and other regions. In the first two months of 2026 alone, domestic companies signed nearly 50 overseas projects with a total order volume exceeding 35 GWh.
Policies have achieved fundamental breakthroughs. Following the issuance of National Document No. 114, which established a nationwide unified capacity tariff mechanism for grid-side independent energy storage, multiple provinces including Inner Mongolia and Gansu have rolled out supporting subsidies. Inner Mongolia offers a subsidy of 0.35 yuan per kWh, while Gansu sets the capacity tariff at 330 yuan per kW per year. These measures have lifted the internal rate of return (IRR) of projects to 8%-20%, fully mobilizing investment from social capital. China Southern Power Grid has also clarified its installation targets for the 15th Five-Year Plan period: 21 million kW for pumped storage and 5 million kW for new energy storage. Energy storage has been firmly positioned as a core pillar of the new power system, and the industry has transformed from policy-driven development to market-oriented operation.
Diverse growth drivers emerge on the demand side. AI data centers stand out as the largest growth segment, with related energy storage demand projected to hit 59 GWh in 2026. Tesla has adopted a solution matching 46 GWh of energy storage per 1 GW of computing power, and NVIDIA has specified that energy storage is a necessity for its 800V DC architecture. Driven by rising peak electricity prices, the payback period for industrial and commercial energy storage has shortened to less than 5 years. Thanks to Australia’s subsidy of 372 Australian dollars per kWh for residential energy storage, the quarterly installed capacity of household systems has exceeded 1 GWh. Grid-side distribution area energy storage is also booming. In Shandong Province alone, 240 new projects with a scale of 6.7 GW/13.93 GWh were filed in the first quarter, effectively addressing the challenges of power distribution network peak-valley gap and new energy consumption.
Technological upgrading accelerates rapidly. The penetration rate of liquid cooling technology has exceeded 50%, becoming the standard configuration for industrial, commercial and data center energy storage thanks to its uniform heat dissipation, low energy consumption and long service life. 800V+ high-voltage systems reduce line losses and improve charge-discharge efficiency. The wide application of 314Ah+ large battery cells has brought the system cost down to 0.8-1.0 yuan/Wh. Grid-forming PCS and long-duration energy storage (projects with a duration above 4 hours account for an increasing share) have become new industry focuses. The levelized cost of electricity of all-vanadium flow batteries has dropped below 0.3 yuan per kWh. Sodium-ion batteries, compressed air energy storage and other technical routes are also developing at a fast pace.
As a high-tech enterprise with 8 years of experience in the energy storage sector, Xinrui Energy holds more than 60 patents and boasts an annual production capacity of 4 GWh. A number of benchmark projects have been put into operation recently:
A 522kWh high-voltage liquid cooling energy storage project in Jiangmen has been commissioned. Integrated with multiple functional modules, it features plug-and-play and rapid deployment. It supports peak-valley arbitrage, emergency power supply and green power consumption, with an investment payback period of 3 to 4 years.
A 100MW/208.8MWh distribution area energy storage demonstration project in Linyi, Shandong, invested by its affiliated company, has completed filing, marking the company’s official foray into the grid-side energy storage track. More projects will be launched across multiple regions in succession.
The company attended a trade matchmaking event targeting Latin America, presenting an integrated solution combining energy storage microgrids with atmospheric water generation to tap into overseas markets. Its products have obtained international certifications and are now available in over 60 countries.
Adopting high-quality battery cells and self-developed BMS and PCS systems, Xinrui Energy’s products achieve a cycle life of no less than 8,000 times and a system efficiency of over 92%. The company provides products and solutions covering all scenarios, ranging from 5kWh household systems to GWh-level grid-side projects. Its intelligent manufacturing base in Dongguan ensures stable product quality and efficient delivery. A professional operation and maintenance team provides 7×24-hour services to guarantee the stable operation of all projects.
Xinrui Energy will further expand its layout in industrial, commercial, distribution area and residential energy storage sectors. It will increase R&D investment in sodium-ion energy storage, grid-forming energy storage and other cutting-edge technologies to develop new-generation products with higher energy density and lower costs. The company will also accelerate localized development in Latin America, Southeast Asia, the Middle East and other overseas regions to lift its global market share. With clean, safe and intelligent energy storage solutions, Xinrui Energy will support the realization of the dual carbon goals and contribute to the global energy transition.
