Pairing distributed renewable energy with energy storage plays a crucial role in achieving China's dual-carbon goals, balancing power supply and demand while enhancing power utilization efficiency at the same time, said company executives and industry experts.

The industrial energy storage sector has vast market potential, with an increasing number of industrial users recognizing the importance of energy storage and showing a growing willingness to install storage systems, said Gao Jifan, chairman and CEO of Trina Solar Co.

"Industrial energy storage systems can effectively enhance power reliability, bridging solar power facilities with the public grid," Gao said during the 15th World Economic Forum Annual Meeting of the New Champions, also known as the Summer Davos Forum, in Dalian, Liaoning province.

Trina Solar has developed a comprehensive energy storage solution. For example, in its Yancheng Delong project in Jiangsu, which stores electricity during off-peak hours and discharges during peak times, it is able to leverage price differentials to reduce energy costs.

It also provides backup power during grid outages or maintenance, improving reliability and minimizing disruptions. Additionally, the energy storage solution enables the storage owner and operator to participate in grid ancillary services, enhancing grid stability and generating additional revenue.

This system supports better integration of renewable energy resources like wind and solar, promoting a cleaner, more sustainable energy mix, he said.

To better integrate renewable energy resources like solar and wind into the grid, many photovoltaic firms are stepping up efforts to invest in energy storage as well as smart grid networks to further enhance the competitiveness of new energy solutions.

Solar panel maker GCL Technology Holdings Ltd said it is involved in a large number of high-quality user-side energy storage projects in the country's more developed regions — such as the Yangtze River Delta and the Pearl River Delta — using the company's photovoltaic industry chain resource advantages and multiple types of energy supply services.

Chinese steel manufacturer HBIS Group has also vowed to optimize its energy structure, advance energy storage technologies and promote "new energy+storage" projects, paving the way for the green transformation of the steelmaking industry.

HBIS currently leads the steel sector in green power trading, ranking among the top 10 in China. It aims to achieve a renewable energy capacity of 350 megawatts by 2025. To enhance renewable energy utilization, HBIS is accelerating the development and application of energy storage technologies, said Yu Yong, chairman of the company.

Capitalizing on abundant photovoltaic resources, HBIS is developing a 150 MW integrated source-grid-load-storage project in a vanadium-titanium materials industrial park in Chengde, Hebei province, to ensure stable power supply.

High carbon emissions in the steel industry stem from its energy structure, so HBIS will continue stepping up efforts to reduce emissions by adopting hydrogen, green electricity and energy storage modalities. This strategy increases renewable energy use and builds a diverse and clean energy system, contributing significantly to global climate change mitigation and environmental protection, he said.

Chen Haisheng, chairman of China Energy Storage Alliance, said initial subsidies in the country not only guide industrial development, but also yield returns by broadening the tax base and boosting local fiscal revenue.

Early policy guidance is crucial for the rapid and high-quality development of regional industrial energy storage. This strategy not only creates mutually beneficial outcomes for businesses and local governments, but also fosters a positive cycle of growth for the industrial ecosystem, Chen said.

Well-designed policy incentives and effective macroeconomic regulation can foster growth for both energy consumers and local economies, he added.

By the end of the first quarter, China had 52.5 gigawatts of pumped storage capacity and 35.3 GW of new energy storage capacity, with a potent under-construction or planned project pipeline to support near-term capacity growth, said consultancy Rystad Energy.