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China Recycling Energy Announces its Intention of Strategic Transformationinto Energy Storage Areas

Energy Storage Technology: A Feasible Alternative to Wind Powerand Solar Energy” in China


Xian,China, November 21, 2017, China Recycling Energy Corp. (NASDAQ:CREG; "CREG" or "the Company"), a leading industrialwaste-to-energy solution provider in China, today announce that to conform to megatrends of domestic andinternational new energy and distributed energy sources, relying on its customerresources, rich professional experience and technical resources, which are accumulatedfor years, alliance with other strategic partners, the Company plans totransform into “an energy storage integrated solution provider”.


Atpresent, the global energy storage industry development has broad prospects. Manyresearch institutions from different fields predicted future capacity of energystorage systems and showed confidence in future market of energy storage, thoughwith different definition. According to Navigant Research data, in 2016 installedcapacity of the global new energy storage and renewable energy was around 161 MW;with continuous falling of energy storage costs and the implementation ofcompensation mechanism, it is predicted that installed capacity of global newenergy storage and renewable energy will break through 12.7 GW by 2025. Yano EconomyResearch Institute’s research results show that due to household energy storagemarket driven, the energy storage market will have rapid growth, the size of themarket in 2017 and 2020 will reach 1.196 GW and 3.307 GW respectively. MorganStanley predicted that energy storage market in Australia will be $24 billionAustralian dollar and 2.4 million subscribers will use light-preserved system.

On October11, 2017 the National Development and Reform Commission, the National Energy Administrationand other three ministries of China jointly issued "Guidance for Promotingthe Development of Energy Storage Industry and Technology". This is thefirst domestic development guidance for energy storage industry. The guidance furtherclarifies the significance of promoting the development of energy storagetechnology and industry in China, establish the key position of energy storagein today's energy system development and energy transformation. With the risinggovernment support for energy storage industry, a growing number ofdemonstration projects are running in China. According to incomplete statisticsfrom China EnergyStorage Alliance (“CNESA”) project libraries, by the end of 2016, China's energy storage market scale has reached  24.3 GW with a 4.7% year-on-year growth. It ispredicated that China’s energy storage market will reach 66.8GW by 2020. China’senergy storage industry has wide prospect of market.

Theboard of directors of the Company believe that energy storage technology is thestrategic supporting technology for transformation of future energy structureand electric power consumption, which can effectively solve the intermittentand stochastic volatility during renewable energy generation, ease the demandof the peak load of power supply, and improve the utilization rate of existinggrid equipment and power grid operation efficiency. Energy storage system candeal with sudden failure of grid, improve power quality, and satisfy economicsocial development requirements for high quality, safe and reliable powersupply. In brief, energy storage technology would be a most feasible alternative to wind power and solar energy in China.

“Duringthe important period of transformation from old kinetic energy to new kineticenergy promoted by the national government, energy storage has become animportant supporting system of modern energy,” commented by Board of directors ofthe Company. “ As an emerging industry, with the loosening of the power salesrestrictions and the promotion of ladder price policy for electricity, theprice difference between peak and trough may be widening in future, whichbrings greater arbitrage space for energy storage. From the point of view of reductionof grid peak power usage, the user-side-market size of energy storage powerstation is about 170 billion kWh in China,”

“Withthe driving force of pressing terminal application demands and strong policysupport, our company will make full use of market opportunity to enter into theenergy storage industry. The company will cooperate with other strategiccooperation partners, including but not limited to, domestic top energy storagecompanies andscience research institutions to engage in the rapid developmentof the energy storage industry, to provide clean, high-quality power supportingservices for Chinese users.” continued by board ofdirectors.

About China Recycling Energy Corp.

China Recycling Energy Corp. (NASDAQ: CREG or "the Company")is based in Xi'an, China and provides environmentally friendly waste-to-energytechnologies to recycle industrial byproducts for steel mills, cement factoriesand coke plants in China. Byproducts include heat, steam, pressure, and exhaustto generate large amounts of lower-cost electricity and reduce the need foroutside electrical sources. The Chinese government has adopted policies toencourage the use of recycling technologies to optimize resource allocation andreduce pollution. Currently, recycled energy represents only an estimated 1percent of total energy consumption and this renewable energy resource isviewed as a growth market due to intensified environmental concerns and risingenergy costs as the Chinese economy continues to expand. The management andengineering teams have over 20 years of experience in industrial energyrecovery in China. For more information about CREG, please visit .

Safe Harbor Statement

This press release may contain certain "forward-looking statements"relating to the business of China Recycling Energy Corp. and its subsidiarycompanies. All statements, other than statements of historical fact includedherein are "forward-looking statements." These forward-lookingstatements are often identified by the use of forward-looking terminology suchas "believes," "expects" or similar expressions, involveknown and unknown risks and uncertainties. Although the Company believes thatthe expectations reflected in these forward-looking statements are reasonable,they do involve assumptions, risks and uncertainties, and these expectationsmay prove to be incorrect. Investors should not place undue reliance on theseforward-looking statements, which speak only as of the date of this pressrelease. The Company's actual results could differ materially from thoseanticipated in these forward-looking statements as a result of a variety offactors, including those discussed in the Company's periodic reports that arefiled with the Securities and Exchange Commission and available on its websiteat http://www.sec.gov. Allforward-looking statements attributable to the Company or persons acting on itsbehalf are expressly qualified in their entirety by these factors. Other thanas required under the securities laws, the Company does not assume a duty toupdate these forward-looking statements.

For more information, please contact:

Mr. Xiaoshan He, Executive Vice President
China Recycling Energy Corp.
Tel: +86 29 8765 1098

Email: sunny@creg-cn.com