The construction of the world’s largest power generation-side electrochemical energy storage project, located in Ulan Chab, Inner Mongolia, officially began on June 26. The 1 GW/6 GWh project owned by state-owned infrastructure and engineering company PowerChina is expected to play a pivotal role in stabilizing the region’s power grid while enabling China’s clean energy transition.
A joint venture between the China Hydroelectric 16th Bureau and Fujian Yongfu Electric Power Design Co. Ltd. is responsible for the design, procurement, construction, and operation of the facility. Once completed, the project will feature 1,200 LFP battery units, each with a capacity of 5.016 MWh, and four 250 MVA transformers. This ambitious project spans 700 mu (46.7 hectares) and is with an investment of CNY 6 billion (US$ 833 million). The total construction period is planned for within six months.
With the ability to stabilize grid frequency, track loads, and participate in energy market transactions, this energy storage system is poised to deliver a wide range of benefits. The project will enhance the flexibility and stability of the Mongolian Western Power Grid and mitigate the issue of wind and solar energy curtailment in the region.
The project will help to reduce wind power curtailment rates by over 15%, providing a critical buffer to the 1.5 GW wind power base in Ulan Chab. Furthermore, the project will ease the “West-to-East” electricity transmission bottleneck by connecting to the 500 kV substation in Chayou Zhong via a new 220 kV transmission line.
The economic and social benefits are also noteworthy. During construction, the project will generate around 2,000 temporary jobs, and once operational, it will require about 200 skilled technical staff. Additionally, the project is expected to contribute over 120 million RMB in annual taxes, significantly boosting the local economy. It will also replace coal-fired peak shaving units, cutting annual CO2 emissions by 1.2 million tons.
This world’s largest power-side energy storage facility marks a critical step forward for Inner Mongolia in the application and scale-up of storage technologies. Over the past three months, the region has accelerated the rollout of several projects exceeding 100MW, driven by policy innovation and technological advances, fostering a development model led by electrochemical storage while accommodating multiple technological pathways.
