Chan Ye Xin Xi Wang·2025-07-02 01:33Core Viewpoint - Compressed Air Energy Storage (CAES) is recognized as one of the most promising large-scale energy storage technologies, with significant growth potential in China due to strong government support and increasing demand for energy storage solutions [1][4][24]. Group 1: Industry Definition and Working Principle - CAES technology utilizes compressed air for energy storage, allowing for large capacity and long-duration energy storage [2][4]. - The system operates by compressing air, storing it, and then releasing it to generate electricity when needed, following a process similar to gas turbines [2][4]. Group 2: Current Industry Status - CAES has been commercially operational in developed countries since the 1950s, with the U.S. and Germany leading in technology development [4][5]. - As of May 15, 2025, China has 13 operational CAES projects with a cumulative installed capacity nearing 1000 megawatts [7][8]. Group 3: Industry Development Environment - The Chinese government has implemented various policies to promote the development of CAES, emphasizing its role in enhancing the stability and efficiency of the power system [14][16]. - The investment in China's power grid construction reached 527.7 billion yuan in 2023, with expectations to complete 600 billion yuan in 2024, supporting the growth of CAES [11][14]. Group 4: Competitive Landscape - The CAES industry in China features a limited number of participants due to high technical barriers, with key players including China Energy Engineering Group, China Power Construction Group, and others [17][19]. - China Energy Engineering Group is notable for its comprehensive involvement in CAES, from technology R&D to project investment [19][20]. Group 5: Future Development Trends - CAES is expected to play a crucial role in addressing energy shortages and environmental issues, with advancements in technology likely to enhance efficiency and economic viability [24]. - The integration of 5G, AI, and big data analytics is anticipated to elevate CAES systems to new levels, supported by increasing government policy backing [24].