Grid-Forming Storage: The "Pillar" of Future Power Grids

Introduction
With the rapid increase in renewable energy penetration, power systems are increasingly exhibiting "dual-high" characteristics, highlighting issues such as low inertia, low damping, and weak voltage support. As traditional thermal power gradually phases out, who will maintain the voltage and frequency stability of the power grid? Grid-forming storage (Grid-Forming Storage) is emerging as the key solution, providing voltage and frequency support capabilities.
01 What is Grid-Forming Storage
Grid-forming and grid-following represent two fundamental control strategies for grid-connected operation. Grid-forming primarily refers to power electronic devices (such as grid-forming inverters, energy storage converters, etc.) that possess the ability to "actively construct the grid," capable of autonomously establishing and maintaining the voltage and frequency of the power grid like traditional synchronous generators, providing fundamental grid support.
1 Grid-Following Control
Grid-following energy storage systems are essentially current sources. As "followers of the grid," they cannot provide voltage and frequency support independently and must rely on the grid's voltage and frequency to operate. Therefore, grid-following energy storage systems can only work when a (strong) grid exists, typically used to supplement the grid's instantaneous power demand.
2 Grid-Forming Control
Grid-forming energy storage systems are essentially voltage sources. As "builders of the grid," they can achieve stable voltage and frequency output through internal voltage parameter settings. Due to their strong grid support capabilities, grid-forming energy storage systems can not only operate in grid-connected mode but also provide support in islanded grid conditions. Additionally, taking Virtual Synchronous Generator (VSG) as an example, grid-forming energy storage systems can also provide virtual inertia and damping to the system.
3 Differences Between the Two Controls
In terms of grid support capability, traditional grid-following storage relies on grid commands and can only passively withdraw when power is lost. Grid-forming storage, on the other hand, can autonomously establish voltage and frequency, quickly "rebuilding order" when the grid collapses.
Dynamic response characteristics represent another significant difference between the two. Grid-forming storage responds 5-10 times faster than traditional grid-connected technology, capable of responding to grid changes within milliseconds. This rapid response capability significantly enhances the power system's reliability in handling突发 accidents.
Table 1: Technical Comparison Between Grid-Following and Grid-Forming
02 Why Grid-Forming Storage?
1 Applicability of Grid-Forming Storage
Grid-forming storage demonstrates outstanding performance in improving grid stability. It can actively provide services such as inertia support, primary frequency regulation, and voltage regulation. Additionally, grid-forming storage can suppress power oscillations through rapid power regulation, preventing cascading failures. For most renewable energy stations with insufficient short-circuit ratio in the grid, preliminary calculations show that configuring 15% of grid-forming storage systems with 1.5 times 10-second overload capacity can basically ensure the normal operation of renewable energy stations.
In promoting renewable energy accommodation, grid-forming storage shows unique value. Renewable energy generation has volatility and uncertainty, and traditional power systems often need to curtail wind and solar power to maintain safe operation. By configuring a certain proportion of grid-forming storage systems with stronger overload capacity (3 times 10-second overload capacity), grid-forming storage can function similarly to synchronous condensers, meeting renewable energy connection requirements while controlling overvoltage levels within specified limits, thus ensuring the stable operation of grids with renewable energy connections and increasing renewable energy penetration by 15-20%.
Grid-forming storage offers cost-effectiveness advantages in providing multiple grid services. Traditionally, different grid services require specialized equipment, while grid-forming storage can "serve multiple purposes with one device," simultaneously providing frequency regulation, reserve, black start, and other services. With technological advancements and economies of scale, the cost advantages of grid-forming storage will become even more apparent.
2 Sinexcel's Grid-Forming Practice
Traditional grid-following storage tends to disconnect during grid faults. Sinexcel's grid-forming storage, through virtual inertia technology, can initiate inertia response within 30ms during grid frequency fluctuations, avoiding forced disconnection of power stations.
In high-penetration renewable energy grids, Sinexcel's grid-forming storage can maintain stable operation and support the grid during abnormal grid voltage conditions (such as operating for one minute at 120% UN), thereby enhancing grid voltage stability.
Under grid fault or extreme conditions, Sinexcel's grid-forming storage can temporarily output current exceeding the rated value (such as operating for 15 seconds at 130% IN), providing critical services such as fault ride-through, voltage support, or frequency regulation.
Table 2: Traditional Grid-Following vs. Sinexcel String-Grid-Forming
03 Market Prospects for Grid-Forming Storage
1 Policy Support
The Chinese government has attached great importance to the development of grid-forming storage technology. The National Development and Reform Commission, National Energy Administration, and other relevant departments have issued multiple documents supporting grid-forming storage technology research and engineering demonstrations. The "14th Five-Year Plan for New Energy Storage Development Implementation Plan" explicitly proposes to accelerate the development of grid-forming storage technology, and the "Guiding Opinions on Accelerating the Development of New Energy Storage" lists grid-forming technology as a key research direction. Local governments in over ten provinces have also introduced supportive policies.
In terms of financial support, the state has established special research funds to support key technology breakthroughs in grid-forming storage. Multiple national scientific research projects (e.g., "Smart Grid Technology and Equipment" key special project) have listed grid-forming storage as a key support direction. At the application level, some provinces provide additional capacity subsidies or electricity price incentives for energy storage projects adopting grid-forming technology.
2 Market Status
In 2024, the number of grid-forming storage projects launched domestically and internationally surged, with grid-forming storage station construction in full swing. China has achieved a transition from following to leading in this field.
Table 3: Major Countries' New Grid-Forming Storage Capacity in 2024
Grid-forming storage applications are showing clear diversification trends. On the generation side, grid-forming storage is mainly paired with renewable energy stations to improve grid connection friendliness; on the grid side, it provides auxiliary services such as frequency and voltage regulation; on the user side, it applies to microgrids and uninterrupted power supply for critical power users. Among these, industrial park grid-forming storage microgrids demonstrate good commercial prospects.
Table 4: Comparison of Typical Grid-Forming Storage Projects in 2024
3 Market Prospects
The grid-forming storage market is entering a rapid growth phase. With regions experiencing over 35% renewable energy penetration showing rigid demand, global new grid-forming storage installations exceeded 8GW for the first time in 2024 (accounting for 15% of total new installations of new energy storage). According to BNEF's 2024 annual report, by 2030, the global grid-forming storage market is expected to grow to 72.5GW (penetration rate rising to 55%). As the world's largest energy storage market, China's grid-forming storage installations are expected to reach 30GW, with its share in new energy storage increasing to 40%.
Table 5: Grid-Forming Market Size Forecast
Grid-forming storage is transitioning from technology demonstration to large-scale application, with the industrial chain rapidly improving. Upstream grid-forming inverter manufacturers have launched mature products; midstream system integrators are actively deploying grid-forming storage solutions; downstream application markets are expanding from power systems to multiple fields such as telecommunications and transportation. With the gradual improvement of standard systems, the marketization process of grid-forming storage will further accelerate. By 2030, it is expected to cover over 75% of new power systems globally, becoming a core component.
Globally, governments are actively developing grid-forming storage, with China, the EU, and the US planning to include grid-forming capabilities in mandatory grid connection standards, with various regulations and mechanisms emerging. Examples include China's "Technical Specifications for Compulsory Storage Allocation in New Energy (Effective 2025)", the EU's "EU Grid Code Revision (NC RfG) (Effective 2026)", and the US's "FERC 1920 Act (Inertia Compensation Mechanism) (Effective 2027)".
04 Future Development of Grid-Forming Storage
As global renewable energy installations surpass 3 billion kW, traditional power systems are undergoing a "genetic-level" transformation. As the core carrier of this transformation, grid-forming storage is reconstructing the energy system from three dimensions: technology, application, and business.
Technologically, it is gradually evolving from component revolution to system intelligence
First, the silicon carbide revolution will drive industrial upgrading. With silicon carbide converters, frequency regulation response time is reduced to 8ms (CATL/Sungrow Qinghai project). Second, AI control systems will achieve "digital twin grids," improving grid-forming storage asset utilization by pre-emptively predicting grid instability risks (according to UK National Grid calculations, utilization will increase by 45%). Finally, modular design will make grid-forming storage a standard component of new power systems, achieving "plug-and-play."
Application-wise, it will achieve comprehensive penetration from land to deep space
The world's first commercial project, the "Sea Star Platform" (Norway, 2027), will use grid-forming technology to establish a 500MW-class floating energy island, enhancing offshore wind power stability. On the industrial microgrid side, the Baosteel Zhanjiang project, through configuring 200MW/400MWh grid-forming storage, has achieved 100% green power steelmaking, realizing annual carbon emission reductions of 1.2 million tons and reducing electricity costs by 10%. NASA's Artemis program is expected to deploy a 10MW grid-forming system by 2028, achieving off-world energy islanded operation.
Commercially, grid-forming storage will reconstruct the energy value system
In 2024, the global grid-forming financial product scale exceeded $8 billion, with an annual growth rate of 65%. Large-scale grid-forming storage systems can be combined with virtual power plants, using storage capacity as a product to generate revenue by selling storage capacity. At the same time, they can package and sell grid support capabilities along with inertia/frequency regulation services, achieving multi-market arbitrage.
Conclusion
In the next decade, grid-forming storage technology will reshape the energy industry like smartphones transformed telecommunications. "Whoever masters the leading position in grid-forming technology will hold the pricing power of future energy."