The direct consequence of overcapacity is a fierce price war. The average bid price for lithium-ion energy storage systems has plummeted like a slide, dropping repeatedly. In 2024, the year-on-year decline reached 47.82%, and this trend continued in the first half of 2025, with another year-on-year decline of 29.94%. In this price war, companies are willing to go to great lengths to compete for a limited market share, with some even offering cell prices below 0.4 yuan/Wh. Wh, akin to a war without smoke, with companies battling fiercely, severely compressing profit margins. The industry's average profit margin dropped from 15% in 2022 to less than 5%, leaving many companies struggling to survive.

Imagine a world where the sun doesn’t shine, and the wind doesn’t blow. How do we keep the lights on? This is where energy storage steps in as the superhero of the energy world. It captures excess energy from renewable sources like solar and wind and stores it for those moments when nature takes a break. Think of it as a giant, eco-friendly power bank for the planet!

Energy storage technology is like the “Transformers” of the energy sector, capable of flexibly storing and releasing electrical energy according to different needs. For example, when solar panels absorb a large amount of sunlight during the day but cannot generate electricity at night, the energy storage system can store the excess electricity from the day and release it at night, ensuring a more stable energy supply.

Energy storage technology, in simple terms, involves storing electrical energy, thermal energy, or other forms of energy for release when needed. Doesn't that sound a bit like a Swiss Army knife? It is powerful, versatile, and capable of solving many complex problems. For example, in wind power and solar power generation, the intermittent nature of wind and sunlight results in fluctuating power output. Energy storage systems act as a “buffer,” storing excess electricity and releasing it when power is insufficient, ensuring the stable operation of the power grid.

Imagine having a magical box that can store electricity anytime, anywhere, and release it when you need it. That's exactly what energy storage is—a “super power bank”! It can not only store free and eco-friendly energy like solar and wind power but also release it when needed, freeing our lives from the constraints of time and weather.

Imagine renewable energy sources like solar and wind power as nature's “free delivery service,” but they have a “small flaw”—they come and go. When the sun sets and the wind stops, the electricity disappears. This is where energy storage comes in! It acts like a “super energy warehouse,” storing excess electricity and releasing it when needed. With it, we can use clean energy anytime, reduce our reliance on traditional fossil fuels, and make the Earth greener and healthier.

nds of homes. In Texas, a massive energy storage project is doing just that. The project, backed by BP and using Tesla’s Megapack technology, has a capacity of 81 MW/324 MWh. This means it can store enough energy to keep the lights on for a small city during peak hours. It’s like having a giant rechargeable battery that can kick in whenever the grid needs a boost. 2. The Long-Lasting “Energy Bank” in China In China, researchers have developed a sodium-ion battery that can last for over 1,000 cycles with minimal loss of capacity. This is a game-changer for renewable energy storage because it means these batteries can be used over and over again without needing frequent replacements. Imagine a battery that can store solar energy during the day and release it at night, all while lasting for years. This technology is making it possible to have reliable energy storage that’s both efficient and environmentally friendly

Reducing peaks and filling valleys Many regions have a peak and valley pricing policy, which means that electricity prices are higher during peak periods and lower during trough periods. Domestic energy storage systems can store electricity during low tariffs and release it during peak hours, thus reducing electricity consumption during peak hours and effectively lowering electricity bills. For example, research in Germany shows that a 2kW photovoltaic system with a 2kWh storage battery can reduce grid electricity costs by 64%.

Imagine how convenient it would be if electricity could be charged and used at any time like a mobile phone. Energy storage technology is such a ‘supercharger’. It can be stored when there is an excess of power and released when there is a shortage of power, solving the limitations of instant power.