As new policies continue to reshape China’s energy storage market, the traditional “single peak-valley arbitrage” model for commercial & industrial energy storage is facing increasing pressure from narrowing electricity price spreads.

The industry is now moving beyond scale-driven growth and entering a new stage defined by operational capability, lifecycle management, and diversified revenue models.

Recently, Cui Dong, Senior Partner and Chief Customer Officer of Far East Holding / Far East Battery, was invited to join First Financial’s “Future of Energy Storage” program to discuss the evolving profitability model of C&I ESS and the future direction of the industry.

Diversified Revenue Models Are Becoming Essential

According to Cui Dong, relying solely on peak-valley arbitrage is no longer sufficient to support long-term project returns.

As a result, more project owners are exploring integrated energy solutions such as:
• Solar + Storage + Charging
• Solar + Storage + Diesel
• Wind-storage integration
• Virtual Power Plants (VPP)

“Energy storage is no longer just a tool for reducing electricity costs. It is becoming a core component of enterprise energy management systems.”

Lifecycle Capability Will Define Project Success

Cui Dong emphasized that future competition in C&I ESS will not be determined only by hardware itself, but by full lifecycle service capability — from project design and product selection to long-term operation and optimization.

Electricity consumption patterns, seasonal demand fluctuations, and dynamic time-of-use pricing all require continuous operational adjustment and intelligent management.

To address these evolving market needs, Far East Battery continues to upgrade its C&I ESS portfolio — from 215kWh and 232kWh systems to 261kWh, 522kWh, and upcoming 1MWh-class solutions — driving higher efficiency, better adaptability, and lower lifecycle costs.

VPP and Multi-Scenario Integration Will Unlock New Value

Cui Dong also highlighted Virtual Power Plants as a key direction for the future of C&I energy storage.

By aggregating distributed storage assets and enabling coordinated operation, VPPs can enhance grid participation capability, improve energy dispatch flexibility, and unlock additional revenue opportunities.

“Affordable, Reliable, and Profitable”

As global AI computing demand and electricity consumption continue to rise, energy storage is rapidly evolving from a supporting technology into a critical infrastructure layer for the new energy system.

Looking ahead, Cui Dong believes the industry must ultimately return to one core principle:

“Energy storage solutions must be affordable to deploy, reliable to operate, and capable of delivering sustainable returns.”

The next phase of C&I ESS will no longer be defined by scale alone — but by operational value, integration capability, and long-term profitability.