China Temporarily Halts Approvals for New Energy Storage Battery Plants

China, the world’s top producer of energy storage batteries, has imposed a temporary suspension on approvals for new battery manufacturing plants. The decision follows an ongoing review by Chinese authorities of existing and planned production capacity in the energy storage sector, with particular focus on battery cells.

Scope and timing of the suspension

According to a report by China’s Caixin Financial News Agency, citing industry sources, the pause affects only projects that have not yet commenced construction. Projects already under way remain unaffected. The sources noted the policy could be adjusted at a later stage.

Growth pressures and market dynamics

The energy storage industry in China has expanded rapidly alongside the country’s renewable energy growth. Like other sectors—including solar panel manufacturing and electric vehicle production—battery makers face mounting pressure from intense competition and falling prices. Leading Chinese solar energy firms have aggressively entered the battery storage space, driven by shrinking profit margins and excess capacity in the solar panel segment.

Regional outlook: UAE as a strategic hub

Jake Chen, Head of Energy Storage for the Middle East and Africa at Trina Solar, stated that the United Arab Emirates is the fastest-growing battery energy storage market in the Middle East and Africa region. Speaking to the Emirates News Agency (WAM) on the sidelines of the Middle East Energy 2026 exhibition in Dubai, Chen projected the UAE market value will reach approximately $3.25 billion by 2030.

He confirmed a compound annual growth rate (CAGR) of 41.2% for the UAE market between 2025 and 2030. Chen emphasized that the UAE serves as a strategic market for Trina Solar—the parent company—which maintains its regional headquarters for the Middle East and Africa in Dubai. Trina Storage, a dedicated business unit under Trina Solar, focuses exclusively on energy storage solutions and systems.

Regional market size and expansion trajectory

Chen estimated the current installed battery energy storage capacity across the Middle East at between 2 and 3 gigawatt-hours (GWh) for 2026, with total system value ranging from $600 million to $900 million. Demand is concentrated primarily in the UAE, Saudi Arabia, and Qatar.

He forecast the broader regional market will grow at a CAGR of 20% to 25% through 2035, with annual installations reaching 15–25 GWh by the end of that period. This growth will be driven by expanding applications across utility-scale, commercial and industrial, and residential sectors.

Trina Storage’s global and regional performance

As of end-June 2026, Trina Storage had shipped more than 25 GWh of cumulative energy storage systems globally. Its shipments to overseas markets rose 250% year-on-year during the first half of 2026.

Confirmed orders for Trina Storage across the Middle East and Africa, Asia-Pacific—excluding China—reached 4.92 GWh by June 2026, reflecting accelerating international demand, including across Gulf markets.

Local investment and technical infrastructure

Chen affirmed Trina Solar’s continued investment in strengthening its local presence, technical support, and customer service in the UAE to meet rising demand for renewable energy and storage solutions. He noted the group’s research and development expenditure totaled $314.1 million in the first half of 2026 alone.

Trina Storage operates a global service network comprising 31 service centers, covering more than 100 countries and regions, backed by over 230 service engineers. The company plans to add 20 GWh of new production capacity in 2026 to bolster its ability to meet surging international demand, including in the Middle East.

New product launch at Middle East Energy 2026

At the Dubai exhibition, Trina Storage unveiled the “Elementa + Electra” integrated utility-scale energy storage solution—the first such offering in the Middle East. The system combines the Elementa 3 direct-current (DC) battery system—rated at 6.25 megawatt-hours (MWh)—with the Electra alternating-current (AC) platform, rated at 13.8 megavolt-amperes (MVA).

The solution delivers up to 50 MWh of storage capacity, with configurable discharge durations ranging from two to eight hours. It achieves a system-wide efficiency of up to 96%, full-power response within 10 milliseconds, and supports grid-forming and black-start capabilities without external power sources.

The system incorporates advanced thermal and electrical protection technologies and carries a 120-minute fire-resistance rating. Pre-integration of DC and AC components into custom containers—and factory-based testing—reduces on-site commissioning time by up to 50%.

Future priorities for the region

Chen stated the next phase of energy storage development in the Middle East and Africa will hinge on the ability to widely deploy solutions while meeting increasingly stringent technical and operational requirements. Trina Storage, he added, is prioritizing integrated offerings that balance performance, reliability, and flexibility to support long-term growth in both energy storage and renewable energy project deployment across the region.