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The Rise of Global Energy Storage: Forecast for 2023 and 2024

EnergyTrend, an analysis firm specializing in the renewable energy sector, has made an exciting prediction. They anticipate a significant surge in global large-scale energy storage system deployments in 2024. This forecast aligns with a growing trend of increased uptake in commercial and industrial (C&I) storage systems, which EnergyTrend expects to continue in the coming year.

Dominating this anticipated growth narrative is large-scale battery storage. EnergyTrend projects a staggering 53GW/128.6GWh of utility-scale installations in 2024. To put this in perspective, the firm stated in December that it expected to discover 52GW/117GWh of new energy storage installed across all market segments in 2023. Additionally, if we include residential and C&I storage, the total figure for 2024 could reach an impressive 71GW/167GWh.


Interestingly, EnergyTrend's bold predictions surpass those of BloombergNEF's recent forecasts. Even BloombergNEF's projections, which were far from conservative, predicted 42GW/99GWh of grid-scale energy storage deployments by 2023.


China Leads the Way in Energy Storage Installations


A recent analysis by EnergyTrend has projected that China will see significant growth in energy storage installations in 2024. With the rapid adoption of wind and solar renewable energy and active promotion of energy storage by government entities at national and provincial levels, China is well-positioned to take the lead in the energy storage market.

According to EnergyTrend's estimates, China's installations in 2024 will reach an impressive 24.8GW output and 55GWh capacity. These numbers highlight the country's commitment to embracing energy storage as a key component of its renewable energy infrastructure.

The analysis firm also pointed out that moves initiated by central agencies in China to promote electricity storage participation in the spot market could have promising implications. This indicates that the government is actively working to create a favorable environment for the growth of the energy storage sector.


The US: A Strong Market for Large-Scale Storage


EnergyTrend's analysis also highlighted the US as a major demand center for large-scale storage in 2024. The market is expected to have a strong appetite for energy storage, driven by a "highly economical and diversified profitability model."


In the US, the market for large-scale storage is projected to be split roughly 70:30 between co-located and standalone storage assets. This demonstrates the country's recognition of the importance of energy storage in supporting the growth of variable renewable energy (VRE).


However, the US faces a unique challenge with weak grid integration nationally, making the need for energy storage even more urgent. As the country continues to expand its renewable energy capacity, energy storage will play a vital role in ensuring a reliable and resilient grid.


The UK: A Standout Market in Europe


While China and the US take the spotlight for their large-scale storage potential, EnergyTrend also identified the UK as the standout market within Europe today. The country's focus on renewable energy and commitment to reducing greenhouse gas emissions has created a favorable environment for energy storage growth.


As the UK continues to invest in wind and solar energy, the need for energy storage becomes increasingly important. By storing excess renewable energy during times of high production and releasing it during peak demand, energy storage technologies can help balance the grid and maximize the use of renewable resources.


In conclusion, the global energy storage market is set to experience significant growth in the coming years, with China, the US, and the UK leading the way. The adoption of renewable energy, along with government support and the urgent need for grid integration, are driving the demand for large-scale storage. As the world transitions to a cleaner and more sustainable energy future, energy storage will play a crucial role in ensuring a reliable and efficient power system.


Energy Storage Market in the US Falls Short of Expectations in 2023


According to research firm Wood Mackenzie and EnergyTrend's reports on the US energy storage market, the installation figures for 2023 have not met expectations. Several factors have contributed to this shortfall.


Supply Chain Disruptions Impact Installation Figures 


During the years 2020-2022, supply chain disruptions primarily focused on lithium-ion (Li-Ion) battery supply constraints. However, in 2023, the disruptions have shifted towards long lead items such as high-voltage transformers. This information is based on input from various sources, including EPC firm Burns & McDonnell.


Grid Connection Delays and Aging Infrastructure 


The US is not alone in experiencing grid connection delays, and this issue is also affecting other energy sectors like wind and solar. Additionally, the aging transmission and distribution (T&D) infrastructure in the US is exacerbating the challenges faced by the energy storage market.


Strong Demand Supported by Business Models and Government Incentives 


Despite the installation figures falling short, there is still a strong demand for energy storage. This is due to the effectiveness of various business models and the impact of government incentives. The introduction of the investment tax credit (ITC) for standalone energy storage through the Inflation Reduction Act (IRA) legislation has significantly contributed to this demand.


EnergyTrend's Forecast for Large-Scale Energy Storage in the US 


EnergyTrend predicts that large-scale energy storage installations in the US could reach 11.6GW/38.2GWh in 2023. This indicates the potential for growth in the industry, even with the current challenges.


Slower Growth Expected for European Energy Storage 


EnergyTrend expects the growth rate of European energy storage deployment in 2024 to be slower than in the current year. However, the firm does not provide specific figures for this expectation. Despite the anticipated slowdown, EnergyTrend still predicts robust growth at a high rate.


UK Leading the Way in the European Storage Market 


The UK remains the leading storage market in Europe. The country's latest future energy plan, published by the government, sets ambitious short-term goals for energy storage installations. EnergyTrend foresees rapid short-term growth in the UK market, with a potential of reaching 4.2GW/6.4GWh of new large-scale installations in 2024.


Strong Growth Trajectory in the UK Energy Storage Market


Although specific installation figures for the UK in 2023 are not yet available, a report by Solar Media Market Research stated that in 2022, the UK added 800MWh of utility-scale energy storage capacity in the form of Li-Ion battery energy storage system (BESS) assets. This demonstrates the country's rapid growth trajectory in the energy storage sector.



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