#China #Energy Storage #Jiangsu #Shanghai Electric #Huai-an

Shanghai Electric's Revolutionary Energy Storage Project

Shanghai Electric has recently completed the commissioning of the world's largest Compressed Air Energy Storage (CAES) facility located in Huai-an, Jiangsu Province, China. This ambitious project represents a significant leap forward in energy storage technology and aims to enhance the country's renewable energy capabilities.

The CAES plant consists of two units, each with a capacity of 300 MW, resulting in a total installed capacity of 600 MW. The facility boasts an impressive energy storage capacity of 2,400 MWh at an approximate conversion efficiency of 71%. The innovative approach involves compressing air during periods of low demand and storing it in underground salt caverns. This stored air can later be released to power turbines for electricity generation during peak demand times, subsequently aiding in grid stability through peak shaving and frequency regulation.

The captured air is stored in expansive salt caverns situated about 1,150 to 1,500 meters underground in Huai-an. To optimize the efficiency of the energy storage process, the project employs high-temperature adiabatic compression technology combined with molten salt and pressurized thermal water. This state-of-the-art method allows for the retention and reuse of compressed heat throughout the entire system, all while avoiding fossil fuel combustion—a move that presents significant carbon reduction benefits.

The first block of 300 MW achieved full operational status in December 2025, and the second block has recently been integrated into the grid, generating power with success on its first attempt. The project has seen an investment of approximately USD 520 million, and it is projected to produce around 792 million kWh of electricity annually. This amount is sufficient to supply power to nearly 600,000 households, alongside saving about 250,000 tons of standard coal and reducing CO₂ emissions by roughly 600,000 tons every year. These figures underline the project's considerable impact on the region's energy transition.

Shanghai Electric Power Generation Group contributed critical equipment to the project, ranging from power generation systems to thermal storage units. This involvement showcases the company’s integrated engineering capabilities, encompassing turbine systems, electrical components, and thermal storage technologies. As the world increasingly shifts towards carbon neutrality, energy storage technologies, especially CAES, are essential in enhancing grid resilience and accommodating high shares of renewable energy.

Leveraging its expertise in system integration, Shanghai Electric aims to develop top-tier equipment and integrated solutions that support global energy transformation and the modernization of energy systems. By fostering sustainable practices, the company is setting a precedent for future projects focused on long-term energy storage.

For more information about the project and Shanghai Electric’s ongoing efforts, visit their official website at https://www.shanghai-electric.com/group_en/.