The world's largest compressed air energy storage (CAES) facility has been fully commissioned in China. The Huai’an Salt Cavern project, located in Jiangsu Province, has a capacity of 600 MW/2.4 GWh (Ess-news, 04/03/2026). The project features two 300 MW CAES units; the first 300 MW unit reached full-load operation in December 2025, followed by Unit 2's commissioning.
During periods of low electricity demand, air is compressed and stored in the salt caverns, before being released at peak times to drive turbines, generating power while supporting grid stability through peak shaving and frequency regulation.
The USD520m project is expected to generate 792 GWh/year of electricity. Harbin Electric Corporation and Shanghai Electric supplied core equipment, including air turbine units, generators, electric motors, and molten salt storage tanks.