A new report from the World Bank has concluded that energy storage capacity is set to increase dramatically in emerging markets in tandem with and enabling greater renewable energy development.
More specifically, the new report — which was authored by Navigant Research and commissioned by the International Finance Corporation (IFC), a member of the World Bank Group, along with the Energy Sector Management Assistance Program (ESMAP), a global knowledge and technical assistance program administered by the World Bank — predicted a 40-fold increase in the stationary energy storage capacity in developing countries by 2025, adding more than 80 gigawatts (GW) to the already 2 GW installed.
The report concluded that by 2020, “developing countries will need to double their electrical power output to meet rising demand” and that by 2035, “these nations will represent 80 percent of the total growth in both energy production and consumption.” Unsurprisingly, therefore, to meet these needs while also adhering to global emissions reductions targets, the authors of the report conclude that “a substantial portion of this new generation capacity will likely come from renewable sources.”
“Energy storage technology will be critical in the expansion of renewable energy in remote and rural areas that lack grid infrastructure or reliable electricity supplies,” said Philippe Le Houérou, IFC Executive Vice President and CEO. “By dramatically expanding the capacity to store energy, these technologies will help countries meet their renewable energy targets, support the demand for clean energy, and help bring electricity to the 1.2 billion people who currently lack access.”
According to the conclusions of the report, deployment of energy storage across emerging markets is expected to grow by 40% annually over the next decade.
The report predicts that the largest energy storage markets over the coming decade are likely to be China and India, thanks in large part to the tremendous renewable energy ambitions of those two countries. Latin America will also represent an attractive market for the development of energy storage, as several countries in the region are moving hard toward increasing their renewable energy capacity — including Mexico, Chile, and Brazil.
Projected Annual Stationary Energy Storage Deployments, Power Capacity and Revenue by Region, Emerging Markets: 2016–2025
The World Bank Group has made addressing climate change and supporting a transition to low-carbon growth a strategic priority, and expects the development of energy storage markets to be vital for countries to implement the Paris climate agreement.
“The World Bank Group is committed to creating the right environment to attract investment in the energy storage market,” said Riccardo Puliti, Senior Director and Head of Energy and Extractives at the World Bank. “Continued innovation in energy storage technology and financing are vital to empower countries to meet the climate-smart targets set in the Paris agreement.”