Editor’s Note:

As the transition to a new power system accelerates, the energy storage industry is undergoing a profound shift from policy-driven growth to value-driven development. With the release of the National Development and Reform Commission’s (NDRC) Document No. 136 causing ripples across the industry, energy storage companies now face a pivotal challenge: how to break free from cutthroat competition.

At this critical juncture, Zhiguang Energy Storage, a pioneer in cascade high-voltage energy storage technology, has set a new industry benchmark with over 6GWh of successfully deployed high-voltage cascade projects.

As both a witness and a key driver of this transformation, Fu Jinjian, General Manager of Zhiguang Energy Storage, has led his R&D team from 2018 to 2025 in achieving multiple breakthroughs in critical technologies. Their innovations have earned numerous accolades, including the first batch of National Energy Administration’s Energy Storage Innovation Pilot Projects, the First-Class Science and Technology Award from the China Power Supply Society, and the First Prize in the Ministry of Industry and Information Technology’s Energy Storage Innovation Competition.

In this exclusive interview, top-tier financial media outlets—including China Energy News, 21st Century Business Herald, Yicai, Jiemian News, and Shanghai Securities News—discuss with Fu Jinjian the industry's shift from a price war to a value war.

Media: The government has been urging industries to break free from excessive internal competition. In your view, what steps should the energy storage sector take to achieve this?

Fu Jinjian: To prevent vicious price wars that lead to subpar products, harm investors’ interests, and undermine industry development, the government has called for an end to internal competition. As a strategic pillar for national energy security, the new energy storage sector must actively respond. I believe the industry must advance in five key areas:

1.Optimizing energy storage dispatching and establishing benchmarking mechanisms. Real-world performance comparisons can help identify the best technologies and products while ensuring appropriate energy storage solutions for different application scenarios.

2.Enhancing technological innovation tailored to specific applications. Different use cases—such as peak shaving, frequency regulation, and backup power—require distinct energy storage solutions. Companies should focus on targeted innovation, eliminating ineffective costs while improving core performance to achieve “higher value without higher prices.”

3.Strengthening policy guidance. Expanding ancillary energy storage services and accelerating the implementation of pricing mechanisms and trading models will help stabilize the industry.

4.Establishing industry standards for different segments. Industry associations should lead the development of application-specific standards to promote fair competition and regulate the market.

5.Fostering talent through industry-academia collaboration. Zhiguang Energy Storage has partnered with leading universities to cultivate talent through joint research, internships, and technical exchanges, proving to be an effective strategy for accelerating workforce development.

These initiatives align with the national goal of high-quality development while steering the industry from price-driven competition to value-driven growth.

Media: What impact has the NDRC’s Document No. 136 had on the energy storage sector? How has it changed the demands of project owners?

Fu Jinjian: Just as electric vehicles lost to gasoline cars 144 years ago due to technological and market factors, they are now surpassing them for the same reasons. The energy storage industry is on the brink of full commercialization, and Document No. 136 has arrived at a crucial moment to guide the sector toward sustainable, market-driven growth.

With market-driven operations, energy storage project owners are now prioritizing performance metrics directly tied to profitability. Cascade high-voltage energy storage technology stands out in this regard—data from large-scale independent energy storage stations show that our 220kV grid-connected projects achieve a charge-discharge cycle efficiency of approximately 90%. Our products have also passed rigorous wind farm grid-integration tests and won first prize in the Ministry of Industry and Information Technology’s National Energy Storage Innovation Challenge.

Media: How is the market penetration of Zhiguang’s cascade high-voltage technology progressing? How does it compare to other grid-forming technologies like synchronous condensers?

Fu Jinjian: Cascade high-voltage technology has been deployed in major state-owned utilities such as State Grid, China Southern Power Grid, and key energy groups across Guangdong, Jiangsu, and renewable energy hubs like Qinghai, Inner Mongolia, Xinjiang, and Shandong. However, market penetration is still below 10%, leaving significant room for growth.

The rise of grid-forming demand stems from the need for stronger grid stability amid increasing renewable energy fluctuations. Cascade high-voltage technology has achieved breakthroughs in both response speed and regulation precision through a modular system design. Compared to other solutions, its core advantages include:

1.Innovative "building-block" system design using standardized energy storage modules, with high-voltage direct-connect architecture enabling single-unit capacities exceeding 100MW.

2.Advanced lifecycle battery management with proactive safety controls and adaptive SOC balancing, increasing cycle efficiency to over 92% and battery utilization to above 90%.

3.Self-synchronizing voltage source control for inertial response and grid stability, maintaining voltage source characteristics even under current limitations.

4.Integrated grid-forming control for renewable-energy-plus-storage projects, enabling black start capabilities, islanded operation, and damping multi-machine oscillations, effectively mimicking synchronous generator behavior.

5.Superior phase regulation capabilities. Our supercapacitor-based cascade high-voltage energy storage solutions are already replacing traditional synchronous condensers, while our lithium iron phosphate-based systems offer even better performance in phase regulation.

Media: What are your expectations for the energy storage market this year?

Fu Jinjian: We remain highly optimistic about the energy storage market. With the global energy transition accelerating and China’s "dual-carbon" goals driving deeper implementation, energy storage is seeing broader applications and higher-quality development opportunities.

By 2024, multiple companies have introduced cascade high-voltage solutions, with several industry leaders achieving their first project milestones. Increased energy storage dispatching, faster market-driven operations, and major players entering the high-voltage space will drive exponential growth in this segment.

Zhiguang Energy Storage continues to focus on technological innovation and scenario-based applications. This year, we will further enhance the grid-forming capabilities of cascade high-voltage storage, integrate AI into energy storage intelligence, and expand our presence in areas such as integrated source-grid-load-storage solutions and flexible peak shaving on the user side.

We believe that by delivering safer, more efficient products and services, we can provide greater value to the industry and help customers achieve a greener and more sustainable energy future.

Conclusion:

As the energy storage industry shifts from expansion to quality-driven growth, Zhiguang Energy Storage is positioning itself as a deep-tech innovator, driving the evolution of Chinese manufacturing. When policy support fades, true technological leadership will emerge—marking the dawn of a new era in energy storage.