China Energy Engineering launches record 25 GWh storage tender as prices hit historic low

China Energy Engineering Corporation (CEEC), a state-owned infrastructure giant, has launched one of China’s largest energy storage procurements to date, tendering 25 GWh of lithium iron phosphate (LFP) battery systems on 3 June. The bid is being viewed as a watershed moment for the marketization of China’s energy storage industry, coming on the heels of major regulatory changes earlier this year.

The tender follows February’s “Document No. 136” from the National Development and Reform Commission (NDRC), which removed mandatory energy storage requirements for renewable projects. Instead, the new policy encourages independent storage by creating arbitrage opportunities in the spot power market, such as in Inner Mongolia where prices now range from CNY –0.05 to 1.5/kWh (–$0.007 to $0.21/kWh). According to the China Energy Storage Alliance (CNESA), new storage installations in China reached 13.3 GW/ 32.1 GWh in the first five months of 2025, up 52.5% / 41.8% year-on-year.

The CEEC procurement was split into three packages, totaling 25 GWh and covering systems with durations of one, two, and four hours. Over 70 companies submitted bids, underlining the intense competition:

• Package 1 (1-hour systems): 3 GW/3 GWh, with bids ranging from CNY 0.673–0.89/Wh ($0.093–$0.123), averaging CNY 0.7863/Wh ($0.109).
• Package 2 (2-hour systems): 6 GW/12 GWh, with offers between CNY 0.416–0.5764/Wh ($0.058–$0.08), averaging CNY 0.4646/Wh ($0.064). Ten companies submitted nearly identical top bids of CNY 0.428–0.44/Wh ($0.059–$0.061).
• Package 3 (4-hour systems): 2.5 GW/10 GWh, with the most competitive range of CNY 0.37–0.495/Wh ($0.051–$0.068), averaging CNY 0.4249/Wh ($0.059). The lowest bid of CNY 0.37/Wh ($0.051) represents a 30% drop from 2024 levels, setting a new industry record.

The bid attracted China’s largest battery players including CATL, BYD, Sungrow and Envision Energy. Leading bids clustered in the CNY 0.42–0.44/Wh ($0.058–$0.061) range for Packages 2 and 3, reflecting differences in technology maturity and cost control.

Envision stood out with its vertically integrated storage systems, while CATL leveraged in-house material supply and manufacturing efficiencies to maintain its pricing edge. Emerging players like Ganfeng Lithium are beginning to gain market share through earlier CEEC cell tenders, although smaller companies with weaker technology or cost structures are struggling, accelerating industry consolidation.

CEEC indicated that more than 60% of the awarded capacity will support standalone battery energy storage projects, focused on peak shaving and frequency response. A significant portion will also be integrated with wind and solar power bases to stabilize renewable output, while smaller deployments will target commercial and industrial users looking to arbitrage time-of-use electricity pricing.

The 25 GWh tender is widely seen as a turning point for the Chinese storage sector’s shift from policy-driven growth to a more sustainable, market-oriented model. With system costs declining rapidly, LFP batteries are gaining traction across grid, generation, and end-user segments.

Looking ahead, technical innovation and further cost reduction remain key. Grid-forming capabilities are expected to become essential for grid-connected storage, while the scaling up of four-hour systems will test the economic viability of long-duration storage, supporting China’s target of 60 GW of new-type energy storage by the end of the 14th Five-Year Plan.