According to reports, Chinese regulatory agencies are considering conducting comprehensive fire safety inspections and upgrades on energy storage facilities in operation. For older energy storage stations, strengthening fire safety measures will significantly increase non-technical costs, which may reach as high as 0.2 RMB per watt hour (0.028 USD/watt hour). This move is in response to a series of energy storage plant safety accidents that have occurred globally recently.

In the first half of 2024 alone, there were at least six fire incidents involving battery energy storage facilities worldwide, resulting in casualties and property damage. On May 15th, a fire broke out at the Gateway energy storage station in Ota Mesa, San Diego, California, which burned for 11 days until all combustibles were burned out. Germany, France, and the UK have also reported further incidents.

In early April, a battery energy storage project in Wenzhou, Zhejiang Province, China caught fire, causing almost all of the construction site to be destroyed. After the accident, the local government required a fire safety inspection and rectification of all battery energy storage facilities under construction and operation within the jurisdiction of Wenzhou.

This action, which may be taken nationwide, seems to be an expanded version of the measures taken by the Wenzhou government. Chinese regulatory agencies have consulted energy storage facility manufacturers, builders, and operators to collect their opinions and suggestions. A nationwide fire safety hazard inspection and upgrade plan is expected to be implemented soon.