The energy storage systems with the greatest development potential are compressed air energy storage (CASP) and flow batteries, especially in long-term energy storage scenarios. Both are rapidly moving from demonstration projects to large-scale applications.
According to global data from 2025, China leads the world in long-term energy storage development with 93% of the cumulative installed capacity. CASP, thermal energy storage, and vanadium redox flow batteries account for 45%, 33%, and 21% of new projects respectively, becoming the three fastest-growing technology routes.
1. Compressed Air Energy Storage: The Future Mainstay for Large-Scale, Low-Cost Development
Advantages: Individual projects can reach the 100 MW level, with the cost per kilowatt-hour expected to drop below 0.2 yuan, suitable for inter-day and inter-week regulation.
Progress: In 2026, California, USA, will complete a 500 MW project for storing solar power; several salt cavern and hard rock cavern projects have already been put into operation in China.
Policy Support: Spain received 700 million euros in national funding, and the UK introduced a profit cap mechanism to guarantee project returns.
2. Flow Batteries (especially vanadium redox flow batteries): Representative of Long-Term Safe Energy Storage
Advantages: Intrinsically safe, cycle life exceeding 20 years, power and capacity can be independently designed, suitable for energy storage needs of 4 hours or more.
Breakthrough: In January 2026, the 200 MW/1,000 MW vanadium redox flow battery power station in Jimsar, Xinjiang, achieved full-capacity operation, marking a key advancement in large-capacity long-term energy storage technology.
Market Trends: Wood Mackenzie predicts that its market share will rise to 5% by 2034, playing a "stabilizer" role in high-proportion renewable energy grids.
3. Other Emerging Technology Dynamics
Solid-State Batteries: Leading companies have already exhibited samples at the 2026 Zhongguancun Energy Storage Exhibition, possessing higher energy density and safety, and are considered a key direction for next-generation electrochemical energy storage.
Rise of Non-Lithium Technologies: Sodium-ion, iron-air systems, etc., are accelerating their deployment in China, Europe, Australia, and other regions due to lithium resource supply chain risks. Long-term energy storage with green ammonia: As a high-energy-density carrier, liquid ammonia has a hydrogen storage density 1.5 times that of liquid hydrogen and is being explored for use in cross-seasonal energy storage.
