#China #Jiangsu #Shanghai Electric #CAES

World’s Largest Compressed Air Energy Storage Facility

In a landmark achievement for renewable energy technology, Shanghai Electric has successfully powered the largest Compressed Air Energy Storage (CAES) facility globally, located in Jiangsu, China. This groundbreaking project recently commenced full operations, representing a significant leap towards sustainable energy practices.

The facility, situated within the Huai'an Salt Cavern, is a demonstration project for CAES technology, showcasing integrated systems designed for energy management and storage. The project features two non-pumped CAES units, each with a capacity of 300 MW, contributing to a total installed power of 600 MW and an impressive energy storage capacity of 2,400 MWh. The efficacy of the system stands at about 71%, significantly enhancing the energy conversion process.

The operational principle of this facility is rooted in peak shaving and frequency regulation. Air is compressed and stored in underground salt caverns during periods of low energy consumption. This stored air is then released to drive turbines and generate electricity during peak demand times. By mitigating peak load stress on the grid, the CAES system plays a crucial role in enhancing energy network stability.

Utilizing approximately 980,000 cubic meters of salt caverns buried 1,150 to 1,500 meters underground, the facility employs high-temperature adiabatic compression technology combined with molten salt and pressurized thermal water. This innovative approach allows the facility to store and reuse compressed heat throughout its operation without the need for fossil fuel burning, resulting in drastically reduced carbon emissions.

The first block of the facility achieved full operational capacity in December 2025, setting the stage for the recent commissioning of its second block. With a total investment of $520 million, the fully functional station is projected to produce around 792 million kWh of electricity per year, sufficient to power approximately 600,000 homes. Moreover, it is estimated that the facility will save about 250,000 tons of standard coal and lower CO₂ emissions by 600,000 tons annually, significantly impacting the local energy landscape.

Shanghai Electric provided essential equipment, including turbines, generators, electric motors, and thermal storage solutions for the project, demonstrating their comprehensive engineering capabilities and expertise in energy management systems. This project sets a benchmark for similar energy storage initiatives globally, showcasing reliable and replicable solutions for long-term energy storage projects.

As the world moves closer to achieving carbon neutrality, CAES technology will be instrumental in enhancing network resiliency while enabling high-penetration integration of renewable energy sources. With the integration and operational knowledge gained from this project, Shanghai Electric is poised to advance state-of-the-art technology and integrated solutions that support the global energy transition and modernization of energy systems.

For more information, visit Shanghai Electric's Official Website.