Core Viewpoint - The end of the mandatory energy storage policy has led to significant fluctuations in the renewable energy market, with contrasting views on the future of energy storage development in China [2][3]. Summary by Sections Policy Impact - The National Energy Administration's policies in January 2025, including the "430" and "531" deadlines, have caused dramatic changes in the installation scale of renewable energy, with solar power installations seeing a year-on-year growth of 388% in May, followed by a decline of -38.4% in June [2]. - Wind power installations also experienced volatility, with growth rates soaring from negative to 800.2% in a matter of months [2]. Energy Storage Market Trends - The cancellation of mandatory energy storage has sparked debate about the future of the domestic energy storage market, with pessimists predicting a severe decline in demand, while optimists foresee a significant increase in system flexibility needs as renewable energy penetration rises [2]. - Data from CNESA indicates that in June 2025, newly operational energy storage projects in China totaled 2.33GW/5.63GWh, reflecting a year-on-year decrease of 65% and 66% respectively [2]. Independent Energy Storage Development - Independent energy storage projects are gaining traction, with many provinces planning substantial projects. For instance, Hebei has announced 6.4GW/20.9GWh of independent storage projects, predominantly funded by local state-owned and private enterprises [4][8]. - Economic models such as the "capacity price" in Hebei and "discharge compensation" in Inner Mongolia are proving to be viable, with Inner Mongolia's projects showing an internal rate of return (IRR) of 14.8% due to favorable price differentials [9][11]. Economic Viability of Energy Storage - The economic feasibility of independent storage is supported by stable revenue from capacity pricing and market-based earnings from the spot market, attracting local investment [4][11]. - The analysis indicates that energy storage can significantly enhance the economic returns of solar projects, especially when paired with self-generated storage to shift energy to higher price periods [12][13]. Future Projections - Predictions suggest that the domestic energy storage market will recover and grow rapidly in the coming years, with expected capacities reaching 160GWh and 210GWh in the next two years [18].