#China #Energy Storage #Jiangsu #Shanghai Electric #CAES

Shanghai Electric Turns On the World’s Largest CAES Facility

In Jiangsu province, China, a groundbreaking energy project has come to fruition. The Huai'an Compressed Air Energy Storage (CAES) facility, the largest of its kind globally, has officially commenced full operations, showcasing an innovative leap in energy storage technology.

Shanghai Electric (SEHK2727, SSE 601727) played a pivotal role by supplying critical equipment necessary for the facility’s operations. This includes air turbine installations, generators, electric motors, and high-capacity molten salt storage tanks, which all contribute to the station's highly efficient functioning.

The CAES setup is remarkable, featuring two installations, each capable of generating 300 MW. Combined, they offer an impressive storage capacity of 2,400 MWh, with a conversion efficiency of around 71%. During low-demand periods, the system compresses air and stores it in underground salt caverns. When demand surges, the stored air is released, driving turbines to generate electricity and effectively stabilizing the grid by managing peak loads and frequency.

The facility utilizes salt caverns positioned 1,150 to 1,500 meters underground, with a volume of about 980,000 cubic meters. Remarkably, it employs an advanced high-temperature adiabatic compression technique using molten salt and pressurized thermal water, all while avoiding any additional fuel combustion. This innovative approach enables significant storage and reutilization of compressed heat, thus minimizing the carbon footprint associated with energy consumption.

The first turbo unit achieved full load efficiency back in December 2025, followed by the successful integration of the second unit, marking a significant engineering achievement for energy system advancements in China. With an investment of approximately $520 million, the fully operational plant is set to generate an astonishing 792 million kWh of electricity annually, which is enough to power around 600,000 households. Additionally, this operation is projected to save approximately 250,000 tons of standard coal and reduce CO2 emissions by 600,000 tons each year, significantly contributing to the region's energy transition.

Shanghai Electric Power Generation Group is proud to have supplied not only power generation equipment but also advanced thermal storage systems. This wide-ranging equipment portfolio highlights Shanghai Electric's integrated engineering capabilities in turbine technology, energy machinery, and heat storage, providing reliable solutions for long-term energy storage projects globally.

As the world pivots toward carbon neutrality, technologies like CAES are crucial for enhancing grid resilience while accommodating a high proportion of renewable energy sources. Leveraging the comprehensive understanding gained from this project, Shanghai Electric is eager to advance high-quality equipment manufacturing and integrated solutions to bolster the global energy transition and modernize energy systems.

For more information, visit Shanghai Electric’s official website.