China operationalizes world's largest compressed air energy storage facility

China has operationalized the world's largest compressed air energy storage facility in Jiangsu province, marking a major technical milestone in stabilizing its green energy grid. Developed by Harbin Electric Corporation, the facility uses underground salt caverns to store energy as compressed air for long-duration support.

Harbin Electric Corporation recently announced that the second unit of its salt cavern demonstration project in Jiangsu province has achieved full-load power generation and entered full commercial operation. The facility represents a significant advance in long-duration storage technology, comprising two 300-megawatt non-combustion storage units with a total capacity of 2,400 megawatt-hours and a world-leading 71 percent conversion efficiency.

Once fully integrated into the regional grid, the project is expected to generate about 792 million kilowatt-hours of electricity annually, supplying stable power to roughly 600,000 households. It is projected to reduce standard coal consumption by 250,000 metric tons and cut carbon dioxide emissions by 600,000 tons each year, delivering substantial environmental benefits.

The launch occurs amid explosive growth in China's energy storage sector, which serves as a vital buffer for the country's rapidly expanding intermittent wind and solar installations. Beijing has targeted over 180 gigawatts of new-type energy storage capacity by the end of 2027, spurring innovation in methods like salt cavern compressed air storage and positioning China as a key testing ground for next-generation energy infrastructure.

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Aerial view of Tesla Megapack batteries at the Helios energy storage site in snowy Sapporo, Japan.
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Tesla Megapacks enable new battery storage system in Japan

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A Tesla-powered battery energy storage system has begun commercial operations in Sapporo City, Hokkaido, Japan. The 50 MW/104 MWh Helios project, developed by Manoa Energy, uses Tesla's Megapack 2XL batteries to support Japan's grid. It operates as a merchant asset in wholesale, balancing, and capacity markets.

Tesla is planning its biggest-ever battery storage megafactory in Shanghai, China, to bolster grid-scale energy solutions. The facility will focus on producing Megapack units to support renewable energy integration and urban power stability. This move aligns with China's aggressive targets for renewables and peak-shaving requirements.

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At COP30 in Belém, Brazil, China positioned itself as a green economy leader, proposing to cut emissions by 7-10% by 2035. The country dominates global production of clean technologies like solar panels and electric vehicles, despite being the top CO₂ emitter due to coal plants.

Following the initial announcement of its Colossus 2 supercomputer, xAI has shared a photo of approximately 420 Tesla Megapacks—valued at $400 million—installed at the Memphis facility, marking the world's largest energy storage system.

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Tesla's advanced battery technologies, including Powerwall and Megapack systems, are playing a key role in stabilizing renewable energy grids and reducing carbon emissions. Innovations in 2025, such as the Megablock platform and virtual power plants, have enabled significant clean energy output and grid support operations. These developments address intermittency issues in solar and wind power while promoting sustainability through recycling and ethical sourcing.

Ethiopian firm Eden Power has partnered with China's Southern Power Grid Technology to create a green technology hub, aiming to boost local manufacturing and job creation in the energy sector.

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Akaysha Energy has activated its 205 MW/410 MWh Brendale Battery Energy Storage System in Queensland, Australia, nearly five months ahead of schedule. The facility, powered by Tesla Megapack 2 technology, connects to Brisbane's South Pine substation and supports the region's energy needs ahead of the 2032 Summer Olympics. It provides energy arbitrage, frequency control services, and enhanced grid stability through grid-forming capabilities.

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