Shanghai Electric Equips World's Largest Compressed Air Energy Storage Plant in China

Shanghai Electric Powers the Largest CAES Plant



In a groundbreaking achievement, Shanghai Electric has played a pivotal role in the commissioning of the world's largest Compressed Air Energy Storage (CAES) facility. Located in the salt cavern of Huai'an, Jiangsu, this advanced project marks a significant advancement in energy storage technology. On March 5, 2026, the plant officially began full operations, thanks to the critical equipment supplied by Shanghai Electric.

Overview of the CAES Facility


The CAES project in Huai'an features a total capacity of 600 MW with two unit installations, each boasting a power generation capacity of 300 MW. A remarkable feature of this facility is its ability to store approximately 2,400 MWh of energy. The technology deployed here utilizes high-temperature adiabatic compression with molten salt combustion, allowing the facility to effectively manage energy storage and conversion without relying on fossil fuels.

During periods of low energy demand, air is compressed and stored in the underground salt caverns. When demand peaks, this stored air is released to drive turbines, generating electricity. This process not only stabilizes the grid but also regulates frequency and reduces energy spikes, contributing significantly to the reliability of the energy supply.

Operational Milestones


The first unit of the CAES plant successfully connected to the grid, generating full power on its initial attempt. The subsequent commissioning of Unit 2 has exemplified the engineering strides made within this project, showcasing the ability of Shanghai Electric to support the development of a new, resilient electricity system in China.

Shanghai Electric's contribution to the project encompasses vital components such as air turbines, generators, electric motors, and molten salt storage tanks. This comprehensive range of equipment reflects the integrated engineering capability of Shanghai Electric, which is also aimed at replicable energy storage solutions globally.

Environmental Impact


With a total project investment of $520 million, this CAES facility is not just about energy supply; it represents significant strides towards sustainability. Once fully operative, the plant is projected to generate approximately 792 million kWh of electricity per year, enough to power around 600,000 homes while saving about 250,000 tons of conventional coal. This transition will also lead to a reduction of approximately 600,000 tons of CO₂ emissions annually, contributing to China’s climate objectives and energy transition.

Looking Ahead


As the world pivots towards carbon neutrality, the importance of long-duration energy storage solutions like CAES is undeniable. They enhance grid resilience and facilitate the transition to renewable energy sources. With its extensive experience in system integration, Shanghai Electric is positioning itself at the forefront of global efforts to modernize energy systems and provide high-end manufacturing solutions.

In conclusion, the Huai'an CAES project serves as a beacon of innovation in renewable energy storage technology. It underscores the critical role that Shanghai Electric is playing in shaping a sustainable energy future, aligning with global initiatives and supporting the transition towards more resilient and environmentally friendly energy systems.

For further information, visit Shanghai Electric.

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