Since 2024, compressed gas energy storage has entered a new stage of rapid growth in installed capacity; in 2025, the installed capacity of operational, under-construction, and planned compressed gas energy storage projects has continued to advance on the track of high-speed development.
Operational Installed Capacity: 1273.5MW/6664MWh
According to statistics from ESPLAZA LDES Network, as of the end of July 2025, 16 compressed gas energy storage projects in China have been completed and put into operation, with a cumulative installed capacity of 1273.5MW/6664MWh and an average energy storage duration of approximately 5.2 hours.
Among them, the newly completed/put into operation installed capacity from January to July 2025 was 300MW/1200MWh; the operational installed capacity in 2024 was 711MW/4344MWh; and the cumulative operational installed capacity before 2024 was 202.5MW/882.5MWh.
Under-construction Capacity: 7.93GW/38.8GWh
According to statistics from ESPLAZA LDES Network, as of now, there are 24 under-construction compressed gas energy storage projects in China, with a total installed capacity of approximately 7.93GW/38.8GWh (Note: Statistics on under-construction projects in this article are based on projects with clear construction start dynamics).
Among them, there are 2 carbon dioxide energy storage projects, accounting for 8% of the national under-construction compressed gas energy storage projects, with a scale of 200MW/1400MWh; 1 liquid air energy storage project, accounting for 4% of the national under-construction compressed gas energy storage projects, with a scale of 60MW/600MWh; and 21 compressed air energy storage projects, accounting for 88% of the national under-construction compressed gas energy storage projects, with a scale of 7.67GW/36.8GWh.
In terms of regional distribution, Shandong, Hubei, Jiangsu, Xinjiang, Inner Mongolia and other regions rank among the top in terms of the number and scale of projects. This reflects several key factors for the site selection of compressed gas energy storage projects: 1. Gas storage resources: salt caverns or abandoned mines/hard rock caves; 2. Renewable energy absorption and power grid peak shaving demand; 3. Local support policies: peak-valley electricity prices, capacity prices, ancillary service markets, etc.
Signed and Planned Projects Exceed 20GW
According to statistics from ESPLAZA LDES Network Network, as of now, there are nearly 60 planned compressed gas energy storage projects in China, with a total installed capacity exceeding 20GW/100GWh. Moreover, this quantity and scale are continuing to grow. Among them, there are 39 signed and planned projects, and about 20 projects in the early stages of feasibility study, design, bidding, etc.
From January to July 2025, a total of 23 compressed gas energy storage projects across the country launched bidding, with more than 42 bidding sections, covering core equipment procurement, EPC general contracting, design consulting, engineering supervision, etc.
From the perspective of the scope and quantity of bidding, the bidding events for compressed gas energy storage from January to July this year were mainly concentrated in feasibility study, survey, design, supervision, EPC general contracting, etc. The increase in planned projects has released positive market signals.
Forecast for New Installed Capacity in 2025
According to official data from the National Energy Administration, as of the end of 2023, the cumulative installed capacity of newly built and put into operation new-type energy storage projects nationwide reached 31.39 million kW/66.87 million kWh, of which compressed air energy storage accounted for 0.5%, corresponding to an installed capacity of 156.95MW.
As of the end of 2024, the cumulative installed capacity of newly built and put into operation new-type energy storage projects nationwide reached 73.76 million kW/168 million kWh, of which compressed air energy storage accounted for 1.0%, corresponding to an installed capacity of 737.6MW.
Based on the above data, the installed capacity of compressed air energy storage in 2024 increased by 579.65MW year-on-year, with a growth rate as high as 370%.
According to the latest project construction progress and their planned operation time, ESPLAZA LDES Network Network estimates that China’s compressed gas energy storage is expected to achieve a new installed capacity of approximately 2.5GW/11.6GWh in 2025 (Note: The above statistics are mainly based on the planned operation time announced by the project parties, but some projects will be delayed according to the actual project progress; a conservative estimate puts the new installed capacity in 2025 at approximately 2GW/10GWh). This will set a new historical record for the new installed capacity of compressed gas energy storage, marking the official start of the commercial and large-scale development of compressed gas energy storage.
