China Eyes 180 GW Energy Storage Goal By 2027

This article first appeared on GuruFocus.

China wants to supercharge its clean energy push by nearly doubling its new energy storage capacity to 180 gigawatts by 2027. The plan, announced Friday by the country’s top economic planner and energy regulator, highlights how fast Beijing is trying to expand the backbone of its renewable power system.

The country had about 95 gigawatts of storage in place as of June, most of it lithium-ion batteries. Hitting the new goal is expected to draw roughly 250 billion yuan, or 35 billion $, in investmentmoney that will flow into battery makers and suppliers across the sector.

Big players like BYD (NYSE:BYD), which is already China’s top electric vehicle company, and battery champion CATL are seen as likely beneficiaries as storage needs soar. For Beijing, it’s about making sure the rapid buildout of solar and wind energy can be matched with reliable storage.

For investors, the plan is a reminder that China’s clean energy push isn’t slowingand that the battery race is only getting hotter.