China Energy Engineering Corporation (CEEC), a major state-owned enterprise, has issued one of the country’s largest energy storage procurement tenders to date, targeting a total of 25 GWh of lithium iron phosphate (LFP) battery systems. The move, signals a significant shift toward a more market-driven energy storage industry in China.
This tender follows sweeping regulatory reforms introduced in February under “Document No. 136” by the National Development and Reform Commission (NDRC), which removed mandatory storage requirements for renewable projects. Instead, the new framework encourages standalone storage participation in the spot power market, enabling developers to capitalize on price fluctuations.
The CEEC bid is structured into three packages, covering one-, two-, and four-hour duration systems. Bidding was highly competitive, attracting over 70 firms. The four-hour package drew particular attention, with the lowest bid falling to CNY 0.37/Wh ($0.051/Wh), marking a 30% drop from 2024 prices and setting a new benchmark low.
Prominent players including CATL, BYD, Envision Energy, and Sungrow were among the bidders. The tender’s outcomes show industry consolidation, with vertically integrated firms and those with supply chain control gaining an edge. More than 60% of the awarded capacity will go to standalone energy storage projects, with the rest supporting hybrid wind and solar setups or commercial users targeting peak shaving and electricity price arbitrage.
Seen as a pivotal moment, this tender reflects China’s transition from policy-driven to economically sustainable energy storage growth, aligning with its ambition to deploy 60 GW of advanced storage by 2025.
