[SMM Hydrogen Policy Update] National Development and Reform Commission: Energy Storage and Hydrogen Energy Become Key Supports for New-Type Power Systems, Green Hydrogen, Ammonia, and Alcohols to Develop on a Large Scale

On November 27, the National Development and Reform Commission (NDRC) held a press conference for November. Li Chao, Deputy Director of the Policy Research Department and Spokesperson, responded to media inquiries regarding the development of emerging industries such as energy storage and hydrogen energy, as well as the next steps for work deployment. He emphasized that energy storage and hydrogen energy are crucial supports for enhancing the power system's regulation capability and building a new-type power system.

I. Significant Industrial Development Achievements, Key Indicators Lead Globally

ESS Industry: Large-Scale Development Reaches New Heights

China's ESS industry has experienced rapid development, with multiple technological pathways advancing simultaneously, including large-scale compressed air energy storage, high-safety chemical energy storage, and solid-state battery energy storage, demonstrating outstanding results in pilot applications. To date, the country's new-type energy storage installations have exceeded 100 million kW, an increase of over 30 times compared to the end of the 13th Five-Year Plan period, accounting for more than 40% of the global total and ranking first in the world. Leveraging advantages such as short construction cycles, flexible deployment, and fast response times, ESS facilities play a key role in power system regulation. During this year's peak summer period, the peak dispatch of new-type energy storage during evening peak hours nationwide exceeded 30 million kW, equivalent to 1.3 times the full-load power generation capacity of the Three Gorges Hydropower Station and the peak load of the Chongqing power grid this summer. The "super power bank" function provides solid support for peak power supply assurance.

Hydrogen Energy Industry: Accelerated Advancement of Full-Chain Layout

Led by the NDRC, an inter-ministerial coordination mechanism for the hydrogen energy industry development has been established, with continuous improvements in policy and standard systems and breakthroughs in key technology research. Currently, China has built a green hydrogen production capacity exceeding 150,000 mt, while also promoting the extension of hydrogen energy into green ammonia and green methanol sectors, accelerating the integrated industrial layout for the production, storage, transportation, and use of green hydrogen, ammonia, and methanol. This layout is expected to play an important role in scenarios such as new energy consumption and clean substitution of end-use energy consumption. For example, enterprises like Mingyang and BASF have begun collaborating to promote the large-scale application of green hydrogen, ammonia, and methanol.

II. Focusing on Three Aspects to Promote Commercialization and Large-Scale Development of the Industry

• Deepening Power Market Reform: Encourage ESS projects to participate in the energy market and auxiliary service markets such as frequency regulation, peak shaving, and reserve capacity based on their own characteristics, obtaining reasonable returns through diversified market channels to stimulate endogenous momentum for industrial development.

• Coordinated Planning of Industrial Layout: Effectively align the supply and demand of green hydrogen, ammonia, and methanol, promoting their large-scale development in key areas; moderately advance the construction of infrastructure for production, transportation, storage, and other links, reducing system operating costs by improving the industry chain.

• Breaking Through Core Technology Bottlenecks: Organize and implement industrial innovation projects, support leading enterprises to collaborate with upstream and downstream partners in the industry chain, as well as universities and research institutes, to integrally advance facility cluster construction, technology R&D, product iteration, and application promotion tailored to different application scenarios. Encourage the orderly development of various new-type energy storage and hydrogen energy technology pathways, providing strong technical support for the construction of a new-type power system.