Air Energy Storage Stations
Shanghai Electric Contributes to an Air Energy Station in Jiangsu
Debra John — March 5, 2026
Shanghai Electric has contributed to the development of a large-scale compressed air energy storage (CAES) station in Jiangsu Province, China, which has recently been fully commissioned. Considered the world’s largest facility of its kind, the project represents an important step toward expanding low-carbon energy infrastructure and supporting the transition to more sustainable power systems.
The station includes "two 300-megawatt non-supplementary combustion CAES units, providing a combined installed capacity of 600 megawatts and a storage capacity of approximately 2,400 megawatt-hours." The system operates with a conversion efficiency of around 71%. During periods of low electricity demand, excess energy—often generated from renewable sources—is used to compress air and store it in underground salt caverns. When electricity demand increases, the stored air is released to generate power.
By storing surplus energy and releasing it during peak demand, the facility helps stabilize the grid, improve renewable energy utilization, and reduce reliance on fossil fuel-based peak generation.
