Core Insights - The report highlights a significant structural adjustment in the energy storage industry, driven by policies aimed at reducing excess capacity and promoting technological innovation, leading to a more efficient and sustainable development path for the sector [8]. Group 1: Market Trends - The number of signed, under-construction, or commissioned energy storage projects in China reached 107 by mid-2025, a year-on-year decrease of 9.3%, with a total capacity of 439 GWh [1][2]. - Despite the reduction in project numbers, the scale of individual projects is increasing, indicating a trend towards larger and more impactful projects [4]. Group 2: Project and Capacity Analysis - For energy storage system integration projects, the installed capacity reached 209 GWh, while the commissioned capacity was 65 GWh by mid-2025 [2]. - Battery projects showed a significant increase in average scale, rising from 3.85 million/GWh in H1 2024 to 6.46 million/GWh in H1 2025, reflecting a shift towards larger-scale operations [4]. Group 3: Investment and Cost Dynamics - The unit investment cost for battery projects decreased from 5.85 million/GWh in H1 2024 to 3.31 million/GWh in H1 2025, indicating improved economic viability and competitiveness in the industry [5]. - The overall investment in energy storage projects is being optimized, with a focus on quality and efficiency rather than mere expansion [4]. Group 4: Regional Insights - Jiangsu province leads the nation with 30 projects, showcasing a total system capacity of 58 GWh and battery capacity of 115 GWh, demonstrating strong industrial chain synergy [9]. - Gansu province ranks second with 18 projects, having system and battery capacities of 27 GWh and 36.6 GWh, respectively [11]. Group 5: Industry Drivers - The current capacity expansion is influenced by multiple factors, including policy drivers, technological advancements, cost optimization, and market demand, with companies adopting a nationwide layout to align with carbon neutrality strategies [13].