SHANGHAI, March 4, 2026 /PRNewswire/ -- The Huai'an Salt Cavern Compressed Air Energy Storage (CAES) demonstration project (the "Project") in China's Jiangsu Province, which is the world's largest CAES station, has recently been fully commissioned. Shanghai Electric (SEHK:2727, SSE:601727) supplied core equipment for the Project, including air turbine units, generators, electric motors, and molten salt storage tanks.
The Unit 2 has successfully achieved grid connection and full-load power generation at the first attempt, providing valuable engineering practice in support of China's new-type power system development.
The Project consists of two 300 MW non-supplementary combustion CAES units, totaling 600 MW of installed capacity and 2,400 MWh of storage, with approximately 71% conversion efficiency. Air is compressed and stored in salt caverns during low-demand periods, then released to drive turbines for power generation at peak times, supporting grid stability through peak shaving and frequency regulation.
Utilizing about 980,000 cubic meters of salt caverns located 1,150 to 1,500 meters underground in Huai'an, the Project employs "molten salt + pressurized thermal water" non-supplementary combustion high-temperature adiabatic compression technology. This enables compressed heat to be stored and reused throughout the process without fossil fuel combustion, delivering significant low-carbon benefits.
The first 300 MW unit reached full-load operation in December 2025, followed by Unit 2's recent commissioning. With a total investment of $520 million, the fully operational station is expected to generate 792 million kWh of electricity annually, that is enough to power around 600,000 households. It will save approximately 250,000 tons of standard coal and cut CO2 emissions by 600,000 tons each year, delivering a measurable impact on the region's energy transition.
Shanghai Electric Power Generation Group supplied core equipment for the Project covering both power generation and thermal storage systems. The broad scope showcases Shanghai Electric's integrated engineering capabilities in turbine machinery, power equipment, and thermal storage, delivering a reliable and replicable equipment solution for long-duration energy storage projects worldwide.
As the world moves toward carbon neutrality, long-duration energy storage technologies like CAES are key to enhancing grid resilience and enabling high-penetration renewable integration. Leveraging system integration expertise from the Project, Shanghai Electric is advancing high-end equipment manufacturing and integrated solutions to support the global energy transition and power system modernization.
For more information, please visit https://www.shanghai-electric.com/group_en/.
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