Bloomberg Predicts Huge Rise in Global Energy Storage Market
- Nov 18, 2021 4:29 pm GMT
The market analysis company BloombergNEF expects energy storage installations around the globe will reach a cumulative 358 gigawatts/1,028 gigawatt-hours by the end of 2030, that is a twenty-fold increase on 2020. This vast hike in stationary energy storage will need more than $262 billion of investment, BNEF concludes.
These figures are from BloombergNEF’s 2021 Global Energy Storage Outlook, released this week. The report estimates that 345 gigawatts/999 gigawatt-hours of new energy storage capacity will be added globally between 2021 and 2030, which is more than Japan’s entire power generation capacity in 2020. The U.S. and China are the two largest markets, representing over half of the global storage installations by 2030. The clean power ambitions of state governments and utilities propel storage deployment in the U.S. In China, the ambitious installation target of 30 gigawatts of cumulative build by 2025 and stricter renewable integration rules boost expected storage installations.
Other top markets include India, Australia, Germany, the U.K. and Japan. Supportive policies, ambitious climate commitments, and the growing need for flexible resources are common drivers.
Regionally, Asia-Pacific (APAC) will lead the storage build on a megawatt basis by 2030, but the Americas will build more on a megawatt-hour basis, because storage plants in the U.S. usually have more hours of storage. Europe, Middle East and Africa (EMEA) currently lags behind its counterparts due to the lack of targeted storage policies and incentives, which may be surprising, considering Europe’s ambitious climate targets. Growth in the region could accelerate as renewables penetration surges, more fossil-fuel generators exit and the battery supply chain becomes more localized.
Yiyi Zhou, clean power specialist at BNEF and lead author of the report, said: “The global storage market is growing at an unprecedented pace. Falling battery costs and surging renewables penetration make energy storage a compelling flexible resource in many power systems. Energy storage projects are growing in scale, increasing in dispatch duration, and are increasingly paired with renewables.”
BNEF’s forecast suggests that the majority, or 55%, of energy storage build by 2030 will be to provide energy shifting (for instance, storing solar or wind to release later). Co-located renewable-plus-storage projects, solar-plus-storage in particular, are becoming commonplace globally.
Customer-sited batteries, both residential and commercial/industrial ones, will also grow at a steady pace. BNEF expects energy storage located at homes and businesses to make up about one quarter of global storage installations by 2030. The desire of electricity consumers to use more self-generated solar power and appetite for back-up power are major drivers.
The rapid evolution of technology, including improved batteries, is driving the move towards energy storage, and this is a positive indicator of the transition to cleaner energy.
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