#China #Energy Storage #Jiangsu #Shanghai Electric #compressed air

Shanghai Electric Powers the World’s Largest Compressed Air Energy Storage Station

Shanghai Electric has recently completed the commissioning of the Huai'an Salt Cavern Compressed Air Energy Storage (CAES) demonstration project, marking a significant milestone in renewable energy storage. Located in Jiangsu Province, China, this facility stands as the world's largest CAES station, with a total installed capacity of 600 MW, comprising two 300 MW units.

The project showcases an innovative energy solution, utilizing a total of approximately 2,400 MWh of storage capability with an impressive conversion efficiency of around 71%. At times of low energy demand, air is compressed and stored in salt caverns located between 1,150 and 1,500 meters below ground. This compressed air can then be released to generate electricity during peak demand, thereby stabilizing the power grid through effective peak shaving and frequency regulation.

Key Features of the CAES Project

This impressive facility relies on cutting-edge technology that integrates molten salt and pressurized thermal water for high-temperature adiabatic compression. This method allows for the storage and reuse of the heat generated during the compression process, eliminating the need for fossil fuel combustion and significantly contributing to low-carbon initiatives. The first unit achieved full-load operation in December 2025, with Unit 2 successfully following suite shortly thereafter.

With a total investment of $520 million, the fully operational CAES station has an anticipated electricity generation capacity of 792 million kWh annually, enough to power approximately 600,000 households. It is estimated that this facility will save around 250,000 tons of standard coal and reduce carbon dioxide emissions by approximately 600,000 tons each year. This outcome significantly aids the region's transition toward sustainable energy solutions.

Shanghai Electric Power Generation Group played a pivotal role in this development by supplying core equipment not only for power generation but also for thermal storage systems. The broad array of equipment showcases the company's integrated engineering expertise in areas such as turbine machinery, power generation equipment, and thermal storage systems. This integrated approach is vital for long-duration energy storage projects globally.

As the world pushes towards carbon neutrality, compressed air energy storage technologies like this one are becoming increasingly important for enhancing grid resilience and enabling the effective integration of renewable energy sources. By leveraging the system integration experience gained from this project, Shanghai Electric aims to advance high-end equipment manufacturing and comprehensive solutions to support global energy transitions and modernize power systems.

The successful operation of the Huai'an CAES not only serves as a benchmark for similar future projects but also points towards a rapidly evolving energy landscape in which sustainable and efficient energy solutions become the norms rather than the exceptions. As nations worldwide work to meet ambitious carbon reduction targets, the role of innovative technologies like CAES will be crucial in shaping the future of energy.

For more details on Shanghai Electric's initiatives and contributions toward global energy solutions, visit Shanghai Electric's official website.