GLOBAL

The global storage sector is expected to explode

The US and China are expected to generate 358GW/1028GWh by 2030, according to BNEF.

According to the latest prediction from research firm BloombergNEF, global energy storage installations will total 358GW by the end of 2030. (BNEF).

By the end of 2030, BNEF predicts 358GW/1028 gigawatt-hours, which is more than 20 times more than the 17GW/34GWh predicted at the end of 2020.

According to the expert, the expansion will require more than $262 billion in investment.

According to the BNEF’s ‘2021 Global Energy Storage Outlook,’ between 2021 and 2030, 345GW/999GWh of new energy storage capacity will be added globally.

By the end of the decade, the United States and China will have accounted for more than half of all global storage installations.

In the United States, state governments and utilities are driving storage implementation, while in China, an aggressive installation target of 30GW by 2025 and stronger renewable integration standards are projected to promote storage adoption.

India, Australia, Germany, the United Kingdom, and Japan are among the major markets.

Common drivers include supportive policies, aggressive climate pledges, and the growing need for flexible resources.

By 2030, Asia Pacific will lead the storage build in terms of megawatts, but the Americas will build more in terms of megawatt-hours, as storage plants in the US typically have more hours of storage.

Due to a lack of tailored storage policies and incentives, Europe, the Middle East, and Africa (EMEA) is currently lagging behind its peers.

As renewable energy penetration rises, more fossil-fuel generators quit, and the battery supply chain becomes more localized, the region’s growth could accelerate.

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“The worldwide storage market is developing at an unprecedented pace,” said Yiyi Zhou, a BNEF sustainable power specialist and primary author of the paper.

“With battery costs falling and renewables penetration rising, energy storage is becoming a tempting flexible resource in many power systems.” Energy storage projects are becoming larger, have longer dispatch times, and are increasingly being combined with renewables.”

According to the BNEF, by 2030, the bulk of energy storage capacity, or 55 percent, would be used for energy shifting, such as storing solar or wind energy to release later.

Co-located renewable-plus-storage projects, particularly solar-plus-storage, are becoming more popular around the world.

“This is the energy storage decade,” said Yayoi Sekine, BNEF’s director of decentralized energy. For many years, we’ve been expecting major scale-up, and the sector is now more than ready to deliver.”

The survey discovered that the industry is using a variety of lithium ion battery chemistries. For the first time in 2021, lithium iron phosphate (LFP) will outnumber nickel-manganese-cobalt (NMC) chemistries in stationary storage.

Because of its dominant position in China and increasing penetration in the rest of the globe, LFP will become the most popular lithium ion battery chemistry in the energy storage market until at least 2030.