Page 10 - AsiaElec Week 08 2021

AsiaElec STORAGE AsiaElec

Energy storage market

forecast to double 2021

GLOBAL THE global energy storage market is targeting will continue to benefit from a reduced tax bur-
record expansion in 2021, with annual installa- den up until 2025.
tions set to break through the 10-GW barrier for In the second half of 2020, 1.3 GW of tenders
the first time. have been announced or awarded for storage that
This is more than double the 4.5 GW of new will be co-located with solar PV.
additions reported for 2020, according to data Combined with the impact of the US ITC,
from IHS Markit. IHS Markit predicts that 3.8 GW of storage
Growth is predominantly being driven by the co-located with solar will be completed in 2021,
US, which is forecast to take a 50% of the global compared with 0.9 GW in 2020 – an increase of
market in 2021. The US market is set to expand 320%.
200% as storage begins to provide power during “The global market for energy storage is
times of peak demand on a significantly wider maturing rapidly. The number of countries
scale. where annual installations exceed 100 MW will
“The energy storage industry will begin sig- increase from nine in 2020 to 17 in 2022. The
nificant multi-year growth in 2021, continuing three biggest contributors to this growth will be
until 2030, as the technology begins to form a the US, mainland China and Australia, which are
core component of power grids in developed together forecast to supply 4.5 GW of capacity in
markets and new opportunities in develop- 2021,” said George Hilton, senior analyst Clean
ing markets continue to emerge,” said George Technology at IHS Markit.
Hilton, senior analyst for clean technology at However, IHS warned that one potential
IHS Markit. brake on storage growth could be the availability
IHS Markit expects the US to continue to of batteries for the energy storage sector.
extend its dominance of the global market, gain- This will be heavily affected by the dynam-
ing market share until 2023 when the project ics of the automotive sector and the pace of the
pipeline reduces. uptake of EVs, as both use LFP (lithium iron
However, from 2025, aggressive decarbonisa- phosphate) batteries.
tion plans in mainland China will lead to rapid Large battery manufacturers are forecast to
growth in the region, driving Asia-Pacific to prioritise long-term supply agreements with
account for 44% of annual installations by 2030. large automotive OEMs over smaller agree-
In Europe, a 70% increase in annual installa- ments with energy storage system integrators,
tions will be realised in 2021, as the technology which could lead to potential shortages or deliv-
will begin to be used more widely to keep the grid ery delays.
frequency stable and reduce the intermittency of However, IHS said that this might also open
renewable energy. up opportunities for smaller, less established or
Solar-plus-storage installations are capitalis- more specialised battery manufacturers to forge
ing on recent policy changes in the US, meaning relationships with leading energy storage system
that energy storage projects co-located with solar integrators.™

P10 www. NEWSBASE .com Week 08 24•February•2021