Research firm Wood Mackenzie has forecast the demand for energy storage capacity to reach 1TWh between 2021 and 2030 in its latest Global Energy Storage Outlook.
Although the pandemic has disrupted the market, Wood Mackenzie says it expects the demand and penetration of energy storage to increase owing to economic recovery efforts being implemented globally.
In addition, the integration of renewable energy resources with grid networks is expected to intensify and project owners are expected to accelerate energy storage rollout to optimise the performance of their clean energy projects.
Xu Le, senior research analyst at Wood Mackenzie, said: “The US and China will dominate the global storage market, together commanding over 70% of total global installed capacity through 2030.
“Moves to accelerate the decarbonisation of the US and Chinese power sectors are gaining pace and provide the foundation of our global market forecast.” {Factors hindering the US from achieving a net-zero power sector by 2035}
The Asia Pacific region is expected to expand its storage capacity 20 times by 2030 to reach 400GWh, with the front of the meter (FTM) projects accounting for 82% of the demand, according to the study.
At a global scale, FTM projects are anticipated to reach 700GWh by 2030, 70% of the globe’s total deployment. China will increase its FTM capacity by three times in 2021 and deliver 260GWh of new capacity by 2030, according to the study.
The behind-the-meter segment is expected to reach 57GWh in new capacity additions by 2030 driven by continued decreases in costs, consumer awareness of the prosumer model and energy sustainability, as well as an increase in combining solar with electric vehicles. The non-residential segment is expected to reach 9.7GWh by 2030.
Installations in Europe are expected to exceed 100GWh by 2030 with Germany and Italy leading the market.
Wood Mackenzie states that high power prices will push the European non-residential segment from 11% in 2020 to 19% in 2030, while the residential market will exceed 27GWh by 2030.
Other notable market trends include Australia dominating the non-residential and Japan the residential sectors in 2021, whilst South Africa will dominate both the FTM and behind-the-meter segments.
Overall, Wood Mackenzie predicts the energy storage market to reach 12GW/28GWh in 2021.
The report notes that the global lithium-ion battery capacity will double in the next two years owing to the increase in demand for energy storage.
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