According to a report by Securities Daily, a recent structural shortage of energy storage battery cells has been identified, with industry experts attributing the issue primarily to policy changes earlier this year. This shortage, which has disrupted production timelines and supply chains, is believed to be closely tied to a regulatory shift introduced by China’s National Development and Reform Commission (NDRC) and the National Energy Administration (NEA).
In February 2025, the NDRC and NEA jointly issued a new directive aimed at accelerating the marketization of renewable energy pricing. Under this policy, existing projects scheduled to connect to the grid before June 1, 2025, will be subject to the “difference settlement mechanism.” This mechanism ensures that the revenue from these projects does not fall below the original electricity price, although the proportion of guaranteed electricity will gradually decrease. On the other hand, projects that connect to the grid after June 1, 2025, will have their electricity prices determined entirely by market competition.
Experts believe that the revised policy has led to a surge in demand for energy storage systems, particularly from projects rushing to meet the pre-June 1 deadline. This demand spike has placed significant pressure on energy storage battery cell producers, who are facing difficulty in meeting the accelerated timeline for production.
As the new policy details are gradually implemented, it is expected that the market-based mechanism for setting prices for new projects will help stabilize the market in the long term. However, the current rush to secure storage solutions for projects with imminent deadlines has highlighted the growing need for more robust production capabilities and a more adaptable supply chain to meet future energy storage demands.
The policy shift, while seen as a step toward improving the market efficiency of the renewable energy sector, has also underscored the challenges of balancing quick deployment with long-term sustainable growth in the energy storage sector.