Energy storage installations will reach a cumulative 358 gigawatts/1,028 gigawatt-hours by the end of 2030, more than twenty times larger than the 17 gigawatts/34 gigawatt-hours online at the end of 2020, according to forecast from research company BloombergNEF (BNEF).
This boom in stationary energy storage will require more than $262 billion of investment, BNEF estimates.
BloombergNEF’s 2021 Global Energy Storage Outlook estimates that 345 gigawatts/999 gigawatt-hours of new energy storage capacity will be added globally between 2021 and 2030, which is more than Japan’s entire power generation capacity in 2020.
The U.S. and China are the two largest markets, representing over half of the global storage installations by 2030. The clean power ambitions of state governments and utilities propel storage deployment in the U.S. In China, the ambitious installation target of 30 gigawatts of cumulative build by 2025 and stricter renewable integration rules boost expected storage installations.
Other top markets include India, Australia, Germany, the U.K. and Japan. Supportive policies, ambitious climate commitments, and the growing need for flexible resources are common drivers.
“Falling battery costs and surging renewables penetration make energy storage a compelling flexible resource in many power systems. Energy storage projects are growing in scale, increasing in dispatch duration, and are increasingly paired with renewable,” Yiyi Zhou, clean power specialist at BNEF and lead author of the report, said.
BNEF’s forecast suggests that the majority, or 55 percent, of energy storage build by 2030 will be to provide energy shifting (for instance, storing solar or wind to release later). Co-located renewable-plus-storage projects, solar-plus-storage in particular, are becoming commonplace globally.