Connect with us

Hi, what are you looking for?



World Energy Storage Forecast Increased 13% — Thanks, IRA & REPowerEU!

Bloomberg New Energy Finance has upgraded its forecast for global energy storage (GES) by 13% thanks to recent developments in the US and Europe.

GES currently sits at 50 GW. Bloomberg New Energy Finance (BNEF) is predicting that it will rise to almost 150 GW by 2025, and over 400 GW by 2030. The core markets are the US, China, and the EU. As recently as November of last year, BNEF’s forecast was a cumulative installed capacity of 358 GW. (Note that this excludes pumped hydro energy storage.)

The Inflation Reduction Act in the US and REPowerEU will underpin the US and EU movement towards faster battery deployment. The IRA, for example, includes an Investment Tax Credit (ITC) that applies to standalone energy storage projects (no need for co-location with a solar power project).

“With ambition the energy storage market has potential to pick-up incredibly quickly,” Yayoi Sekine, head of energy storage at BNEF, added. “The nuts and bolts of how energy storage projects will materialize as result of big policies like the US Inflation Reduction Act still need to be sorted. However, companies are already scaling up operations to capture the upside.”

While US and European energy storage policies have stimulated the increased storage deployment forecast for 2030, neither is expected to be the largest market for stationary energy storage in 2030 on a power capacity (GW) basis. The Asia Pacific region is expected to be, driven by China’s energy storage market. That said, the Americas are expected to lead on new energy storage capacity (GWh). The reason is that “storage plants in the US usually have more hours of storage.”

The REPowerEU policy was produced in response to the Russian war in Ukraine. This has exposed European dependency on fossil gas imported from Russia. According to European Commission (EC) Vice President Maroš Šefčovič: “Energy storage will play a key role …. It will help facilitate the integration of renewables and the electrification of the economy, while increasing the flexibility and security of the energy system. Storages will be critical to reducing energy prices by pushing expensive gas power plants out of the market during peak price hours.”

Vice President Šefčovič highlighted that in the short term, the potential of batteries — and in the longer-term, power-to-X technologies — must be “exploited to make the most of the current global storage revolution.” Much of this storage will be used for energy generation, time shifting. A solar glut in the middle of the day can be stored for use at peak demand in the evening, thus displacing expensive gas power generation.

“The energy storage industry is facing growing pains. Yet, despite higher battery system prices, demand is clear. There will be over 1 terawatt-hour of energy capacity by 2030. The largest power markets in the world, like China, the US, India and the EU, have all passed legislation that incentivizes energy storage deployments,” BNEF analyst Helen Kou said.

Australia gets a note for its focus on decentralized, customer-sited energy storage, as does Germany. “Customer-sited batteries ­— both residential, and commercial and industrial — are also expected to grow at a steady pace. Germany and Australia are currently the leaders in this space, with sizeable markets in Japan and California too,” BNEF writes. “BNEF forecasts energy storage located in homes and businesses will make up about one quarter of global storage installations by 2030.”

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

David Waterworth is a retired teacher who divides his time between looking after his grandchildren and trying to make sure they have a planet to live on. He is long on Tesla [NASDAQ:TSLA].


You May Also Like

Clean Transport

One of the largest double-decker electric bus orders in history just went down in the UK. Stagecoach, one of the UK’s largest coach and...

Green Economy

Thanks to the Inflation Reduction Act, investments in clean technology in America are soaring as companies rush to claim its benefits.


The auto market in Germany saw plugin EVs take 22.9% share in May 2023, down from 25.3% year on year. Full electrics gained share,...

Clean Power

The International Energy Agency says in its latest report that investments in renewable energy are exceeding those in fossil fuels.

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.