Image: PowerChina
Construction has officially begun on the world’s largest power generation-side electrochemical energy storage project, located in Ulan Chab, Inner Mongolia. The 1 GW/6 GWh facility, developed by PowerChina, marks a major milestone in China's efforts to accelerate its clean energy transition and enhance grid stability.
The project is being developed by a joint venture between China Hydroelectric 16th Bureau and Fujian Yongfu Electric Power Design Co. Ltd., which is responsible for the full scope of design, procurement, construction, and operation. With a total investment of CNY 6 billion (approximately USD 833 million), the facility will be constructed over an area of 700 mu (46.7 hectares), with completion targeted within just six months.
At the heart of the project are 1,200 lithium iron phosphate (LFP) battery units, each with a capacity of 5.016 MWh, supported by four 250 MVA transformers. Once operational, the system will serve a variety of grid functions, including frequency regulation, load tracking, and participation in electricity market transactions.
One of the project's most significant contributions will be its ability to reduce renewable energy curtailment—particularly for wind power. The energy storage facility is expected to cut curtailment rates by more than 15%, supporting the nearby 1.5 GW wind power base in Ulan Chab. It will also alleviate transmission bottlenecks in the region, connecting to the 500 kV Chayou Zhong substation via a new 220 kV transmission line to facilitate smoother “West-to-East” electricity transfers.
The project is also expected to deliver meaningful economic and environmental benefits. Around 2,000 temporary jobs will be created during the construction phase, with 200 skilled workers employed during operations. Additionally, the facility is projected to contribute more than RMB 120 million in annual tax revenue to the local economy and replace coal-fired peak-shaving units, cutting carbon dioxide emissions by an estimated 1.2 million tons annually.
This landmark project represents a key step in Inner Mongolia’s broader push to scale up energy storage technologies. In recent months, the region has fast-tracked multiple storage projects above 100 MW in capacity, spurred by policy support and technological innovation. The Ulan Chab project stands out as a model of large-scale deployment, reflecting China’s growing emphasis on electrochemical storage and integrated clean energy solutions.
