2026 marks a pivotal year for the market-oriented transformation of China’s energy storage sector. The industry has bid farewell to the extensive development model driven solely by scale expansion and policy incentives, and fully stepped into a new stage of high-quality development featuring safety priority, long-duration energy storage, diversified revenue streams and globalized layout. With the rollout of national capacity electricity pricing mechanisms and new quality supervision regulations for energy storage power stations, coupled with surging demand for energy storage supporting computing hubs and overseas industrial & commercial energy storage, the industrial landscape is undergoing rapid restructuring. Dongguan Xinrui Energy Technology Co., Ltd., a high-tech enterprise with eight years of deep cultivation in the energy storage sector, has recently delivered a batch of landmark projects at home and abroad while ramping up technological R&D, emerging as a typical integrated solution provider amid the industry’s transformation.
I. Industry Overview: Skyrocketing Installed Capacity and Complete Restructuring of Commercial Logic
Statistics from the China Energy Storage Alliance (CNESA) show that newly commissioned installed capacity of new energy storage in China reached 9.51GW/24.18GWh from January to February 2026, representing a year-on-year capacity surge of 472%. Energy storage deployed alongside computing hubs accounts for over 40% of the total, surpassing traditional wind-solar paired storage to become the largest application scenario.
Policy reforms have reshaped the fundamental business logic of the industry. The Circular on Improving the Capacity Electricity Pricing Mechanism for Power Generation Sectors establishes a three-dimensional revenue model consisting of capacity compensation, electric energy arbitrage and auxiliary services, with 4-hour long-duration energy storage set as the benchmark for full access to capacity electricity pricing benefits. New power safety regulations and the comprehensive quality supervision guideline for energy storage power stations, slated for implementation in July, have significantly raised thresholds for industry safety and grid connection compliance, accelerating the phase-out of low-cost, low-quality production capacity.
On the market front, demand is expanding simultaneously across four major tracks: industrial and commercial peak-valley arbitrage, distribution grid energy storage, residential & industrial-commercial energy storage overseas, and virtual power plants. Multiple technical routes are developing in parallel, with liquid-cooled lithium-ion energy storage as the mainstream. Sodium-ion and all-vanadium flow long-duration energy storage have entered large-scale demonstration phases. Enterprises with self-developed BMS (Battery Management System), PCS (Power Conversion System), full-scenario delivery capabilities and market-oriented operation expertise have built widening competitive moats. A broad industry consensus has formed: the era of cutthroat competition relying merely on low-cost hardware is over. Full-lifecycle revenue operation, proprietary safety technologies and cross-border project delivery capacity have become the core dividing line among market players.
II. Xinrui Energy Achieves Multi-Dimensional Breakthroughs: Delivery of Flagship Overseas Projects & Launch of Domestic Grid-Side Schemes Accelerate Comprehensive Layout
Amid the structural reshaping of the industry, Dongguan-headquartered Xinrui Energy has unveiled a string of major project developments recently, covering three core segments: European overseas markets, domestic grid-side energy storage and industrial & commercial energy storage for industrial parks, validating its capability to deploy full-scenario energy storage solutions.
1. Breakthrough in European Market: 1.044MWh Liquid-Cooled Energy Storage Project in Spain Completed and Put into Operation
In mid-June, the 1.044MWh industrial & commercial liquid-cooled energy storage project of Dongguan Xinrui Energy Technology Co., Ltd. in Toledo, Spain, finished all commissioning and was officially connected to the grid. Delivering integrated energy storage solutions for local manufacturers, it stands as a landmark project demonstrating the company’s deep footprint in Europe’s industrial and commercial energy storage market.
The project adopts Xinrui’s self-developed 261kWh high-voltage liquid-cooled integrated energy storage units, with four units deployed in parallel. The overall system efficiency exceeds 92%, and the cycle life tops 8,000 times. Upon commissioning, the project delivers three core values: drastically cutting factory power expenses by leveraging Europe’s peak-valley electricity price gaps, providing seamless emergency power supply during grid outages to guarantee uninterrupted production lines, and stabilizing voltage fluctuations to improve power quality within the plant. The payback period of the project ranges from 3 to 4 years.
According to the company’s overseas business director, Xinrui’s energy storage products have obtained authoritative international certifications including EU CE and UL, with business presence covering more than 60 countries worldwide. Permanent overseas offices operate in the UK, the Middle East and Latin America. Previously showcased at Latin American energy trade fairs, the enterprise’s differentiated integrated solution combining energy storage microgrids and atmospheric water generation caters to energy demands in remote off-grid regions suffering from freshwater shortages, unlocking incremental growth in emerging markets. On June 11, a delegation from the Korea New Energy Association paid a special visit to Xinrui Energy’s R&D and intelligent manufacturing base, reaching preliminary cooperation intentions on cross-border energy storage and microgrid projects and advancing the company’s layout in East Asia.
2. Deepened Layout in Domestic Grid-Side Sector: 100MW Distribution Cloud Energy Storage Project in Shandong Completed Filing
Major progress has been secured in China’s grid-side energy storage track. The 100MW/208.8MWh distributed cloud energy storage demonstration project in Lanling, Linyi, Shandong, partially invested and developed by Dongguan Xinrui Energy Technology Co., Ltd., completed filing in March this year, marking the company’s formal entry into large-capacity grid peak regulation and virtual power plant businesses.
Rooted in Xinrui Energy’s technical expertise in distribution grid energy storage and virtual power plants, the enterprise previously partnered with State Grid, XJ Group and Haier Group to launch a distribution grid energy storage pilot for State Grid Jiangsu, developing a cloud energy storage dispatching platform. The platform enables participation in multiple revenue markets including grid frequency regulation, demand response and capacity electricity pricing, capitalizing on current policy dividends for long-duration and distributed energy storage in China.
In the field of distributed industrial and commercial energy storage, the 522kWh high-voltage liquid-cooled energy storage project in Jiangmen, Guangdong, has maintained stable operation. Tailored for manufacturing parks in the Pearl River Delta, the plug-and-play standardized energy storage system supports multiple scenarios such as green power consumption optimization, demand charge management and emergency backup power. Thousands of manufacturing enterprises in Dongguan, Foshan and Zhongshan have adopted the system, forming a localized delivery and operation & maintenance service network built by Dongguan Xinrui Energy Technology Co., Ltd.
III. Proprietary Core Technologies & Production Capacity Lay Solid Foundation: Self-Developed Software and Hardware plus 4GWh Intelligent Manufacturing Capacity Forge Long-Term Competitive Barriers
Against the backdrop of tightening industrial safety supervision and rising demand for long-duration energy storage, Xinrui Energy continues to ramp up R&D investment. The company now holds over 60 patents related to energy storage with an R&D team of more than 50 professionals. It has established a full-stack independent R&D system for BMS and high-power PCS, achieving in-house development and production of liquid cooling temperature control, battery equalization and grid-forming energy storage control technologies. These technologies mitigate thermal runaway risks from the source, complying with stringent national safety standards for energy storage power stations.
Xinrui Energy’s intelligent manufacturing center in Dongguan has completed upgrading, lifting the annual production capacity of energy storage equipment to 4GWh and the annual output of hybrid inverters to 36,000 units. Mass production has been realized for standardized liquid-cooled energy storage containers and residential integrated energy storage units. A 7×24-hour national operation and maintenance team ensures stable full-lifecycle operation of projects at home and abroad. Looking ahead to cutting-edge technology, the company advances R&D on sodium-ion energy storage and long-duration flow battery systems. Targeting policy incentives for long-duration energy storage in Northwest and South China, it develops large-capacity products with a discharge duration of over 6 hours to seize differentiated revenue opportunities brought by capacity electricity pricing mechanisms.
IV. Industry Outlook and Corporate Strategy: Focus on Full-Scenario Energy Storage to Seize the Golden Period of Marketization
Industry analysts predict that 2026–2028 will be the golden cycle for revenue realization in market-oriented energy storage. Enterprises with a three-dimensional layout covering domestic grid-side, industrial & commercial and overseas markets, as well as integrated self-developed software and hardware capabilities, will continuously reap dividends from industry expansion.
Wang Jiping, Chairman of Xinrui Energy, stated that the company will closely follow the three core development threads of the energy storage industry: value orientation, long-duration technology and globalized operation, and implement three major strategies:
First, deepen coordinated layout of industrial & commercial energy storage, distribution cloud energy storage and virtual power plants in the domestic market, and scale up the supply of long-duration energy storage products with over 4-hour discharge capacity.
Second, accelerate localized overseas operations to expand industrial & commercial energy storage and off-grid microgrid markets in Europe, Southeast Asia and Latin America.
Third, continuously upgrade sodium-ion and liquid-cooled safety energy storage technologies, and build full-scenario integrated energy storage solutions covering residential, industrial & commercial, and GWh-level large-scale grid-side projects. Leveraging technological innovation and project implementation, Xinrui Energy will advance the high-quality development of China’s new energy storage sector and contribute to the global carbon peaking and carbon neutrality energy transition goals.
(Data Sources: China Energy Storage Alliance (CNESA), official project announcements of Xinrui Energy, policy documents issued by the National Energy Administration)
