Due to recent events in the US and Europe, Bloomberg New Energy Finance has increased its projection for global energy storage (GES) by 13%.
GES is presently 50 GW. According to Bloomberg New Energy Finance (BNEF) , it will increase to almost 150 GW by 2025 and more than 400 GW by 2030. The US, China, and the EU are the three main markets. A cumulative installed capacity of 358 GW was the BNEF prediction as recently as November of last year. (Note that pumped hydro energy storage is not included.)
The US and EU efforts to accelerate the deployment of batteries will be supported by the Inflation Reduction Act and REPowerEU. For instance, the IRA contains an Investment Tax Credit (ITC) that is applicable to independent energy storage projects (no need for co-location with a solar power project).
Yayoi Sekine, head of energy storage at BNEF, continued, “With ambition the energy storage sector has potential to pick-up tremendously quickly.” “The specifics of how major initiatives like the US Inflation Reduction Act will result in the development of energy storage projects still need to be worked out. Companies are, however, already expanding their operations to benefit.
Although the increased storage deployment predicted for 2030 has been sparked by US and European energy storage policies, neither is anticipated to be the major market for stationary energy storage in 2030 on a power capacity (GW) basis. The energy storage industry in China is anticipated to be the main driver in the Asia Pacific region. But in terms of new energy storage capacity, the Americas are anticipated to take the lead (GWh). “Storage plants in the US typically have longer hours of storage,” is the explanation.
In reaction to the Russian invasion of Ukraine, the REPowerEU policy was developed. This has revealed Europe’s reliance on Russian-imported fossil fuels. Energy storage will be crucial, according to European Commission Vice President Maro efovi in According to . It will improve the flexibility and security of the energy system while assisting in the integration of renewable energy sources and the electrification of the economy. By eliminating pricey gas power plants from the market during times when energy prices are at their highest, storages will be essential to lowering energy costs.
Vice President efovi emphasized that in order to “make the most of the current global storage revolution,” the potential of batteries in the short term and power-to-X technologies in the long term must be “exploited.” A large portion of this storage will be used for time dilation and energy creation. When there is a solar surplus in the middle of the day, it can be stored and used when there is a peak in demand in the evening, replacing costly gas power generation.
“The energy storage market is going through a transitional period. The demand is evident despite rising battery system costs. By 2030, there will be an energy capacity of more than 1 terawatt-hour. Energy storage deployments are encouraged by laws that have been implemented in the main electricity markets in the world, including China, the US, India, and the EU, according to BNEF analyst Helen Kou.
Australia and Germany are commended for concentrating on decentralized, customer-sited energy storage. Residential, commercial, and industrial customer-sited batteries are also anticipated to expand steadily. According to BNEF, Germany and Australia are now the global leaders in this sector, with sizable markets also present in Japan and California. By 2030, BNEF predicts that residential and commercial energy storage will account for around 25% of all storage installations worldwide.
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