World’s First 300 MW Compressed Air Energy Storage Plant

January 14, 2025

The Nengchu-1 project in Yingcheng, Hubei Province, has marked advancement in China’s energy storage capabilities. This facility is the world’s first 300-megawatt compressed air energy storage (CAES) demonstration project. It has achieved full capacity grid connection and is now generating power. The project has set three world records and demonstrates China’s leadership in CAES technology, which addresses the challenges of clean energy intermittency.

Overview of Compressed Air Energy Storage (CAES)

Compressed Air Energy Storage (CAES) is a technology that stores excess energy by compressing air in underground caverns. During periods of high energy demand, the stored air is released to generate electricity. This method is advantageous for balancing energy supply and demand.

Key Features of Nengchu-1

Nengchu-1 boasts a single-unit power capacity of 300 megawatts and an energy storage capacity of 1,500 megawatt-hours. It utilises a maximum underground gas storage volume of 700,000 cubic meters. The facility can store energy for up to eight hours and release it over five hours daily. Its operational lifespan exceeds 30 years.

Environmental Impact and Efficiency

The Nengchu-1 project is expected to generate 500 million kilowatt-hours of electricity annually. This output will save more than 150,000 tons of standard coal each year. The project operates without fossil fuels, contributing to a greener energy system.

Technological Advancements and Records

This project has set records for power output, energy storage scale, and energy conversion efficiency. It represents step towards technological self-reliance in China. The facility’s performance during trial operations has exceeded expectations, with stable equipment operation and high efficiency.

Historical Context of CAES Technology

CAES technology has been under investigation for over 40 years, with commercial applications existing since the late 1970s. Early investigations focused on load following and meeting peak demand in nuclear power. Today, CAES is recognised for its economic and environmental benefits.

CAES technology can be adapted for small-scale operations using high-pressure tanks.
The Nengchu-1 facility reaches a maximum depth of 600 meters.
CAES technology has been commercially available for over 40 years.
The project is expected to save 150,000 tons of coal annually.
China aims for non-fossil energy to constitute 25% of total consumption by 2024.

Future Implications for China’s Energy Transition

The completion of Nengchu-1 aligns with China’s guidelines to accelerate its green transition. These guidelines aim to increase non-fossil energy usage and expand pumped storage hydropower capacity . The project is seen as a driving force for modernising the power grid and supporting a low-carbon future.

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