1.4GW/8.2GWh
Global Installed Capacity of Commissioned Long-Term Energy Storage in 2023
650GW/1,877GWh
Global Cumulative Installed Energy Storage Capacity Forecast to the End of 2030
According to the research, the global installed energy storage capacity additions are expected to hit a record in 2023, with 42GW/99GWh . And is expected to grow at a CAGR of 27% through 2030, with annual additions of 110GW/372GWh in 2030, which is 2.6 times the expected figure for 2023.
Targets and subsidies are translating into project development and power market reforms that favor energy storage. The upward revision of deployment forecasts is driven by a wave of new projects triggered by energy time-shift demand. Markets are increasingly looking to energy storage as a capacity service (including through capacity markets).
On the technology front, lithium-ion batteries using nickel-manganese-cobalt (NMC) material systems are losing market share due to their relatively high cost compared to lithium iron phosphate (LFP) batteries. In addition to Li-ion batteries, alternative technologies focused primarily on long-duration energy storage (LDES) needs remain limited, with only 1.4GW/8.2GWh of installed capacity commissioned globally. the Asia-Pacific region has accounted for 85% of the new installed capacity since 2020.
Europe, Middle East and Africa (EMEA) accounts for 24% of annual energy storage deployments (in GW) by 2030. The region is adding 4.5GW/7.1GWh of installed energy storage capacity in 2022, with Germany and Italy exceeding our previous expectations for household battery storage installations. Household batteries are now the largest source of energy storage demand in the region, and this will remain the case through 2025. In addition, more than €1 billion ($1.1 billion) in subsidies have been allocated to energy storage projects in 2023, supporting a range of new reserve projects in Greece, Romania, Spain, Croatia, Finland and Lithuania. Cumulative installed capacity in EMEA will reach 114GW/285GWh by the end of 2030, a 10-fold increase in GW terms, with the UK, Germany, Italy, Greece and Turkey leading the way in terms of new capacity.
Asia-Pacific maintains its lead in installed energy storage capacity (in GW) and will account for nearly half (47%) of new capacity additions in 2030. China's lead is due in large part to top-down mandatory requirements for large-scale wind and PV to be equipped with energy storage. Other markets have also developed new policies to promote energy storage. South Korea will hold energy storage bids to reduce renewable energy abandonment and has issued a new policy to revitalize its commercial energy storage industry. Australia and Japan are both conducting new capacity bids for clean and stable capacity, favoring storage installations by offering long-term capacity tariffs. India's new ancillary services offerings may provide opportunities for stationary energy storage in the wholesale market. We have raised our forecast for cumulative energy storage deployments (in GW) in Asia-Pacific by 42% to 39GW/105GWh in 2030, mainly due to the forecast outlook and methodological guidance update for China.
The Americas lag behind other regions and will account for 18% of deployed capacity in GW in 2030. The expanding geographic distribution and scope of energy storage deployment activity in the United States suggests that it has become a mainstream source of decarbonization strategies for U.S. utilities. In California and the Southwest, projects delayed due to higher-than-expected energy storage costs are finally being connected to the grid. Market reforms in the Chilean capacity market could pave the way for an acceleration of new installed capacity additions in emerging energy storage markets in Latin America.
With over 10 years of experience in energy storage and more than 50 projects with a total capacity of 2GWh globally, Dowell Technology Co., Ltd. will continue to promote green energy and drive the world's transition to sustainable energy!
Post time: Oct-17-2023