Global installations of energy storage are expected to get a big boost thanks to sweeping climate legislation around the world, including in the US and the European Union.
The capacity of storage systems will grow 15-fold by 2030, reaching 411 gigawatts, according to BloombergNEF, a research company. The amount of storage capacity to be deployed from 2022 through 2030 is greater than the capacity of all the power plants in Japan, according to BNEF.
President Joe Biden’s landmark US Inflation Reduction Act, which earmarks more than $369 billion in funding for clean technologies, and the European Union’s REPowerEU plan, which sets ambitious targets to reduce reliance on gas from Russia, are the key forces behind the push for more energy storage, BNEF said.
The US and China will remain the two largest markets, with Europe having a significant increase in capacity. Russia’s invasion of Ukraine and the resulting record electricity prices are forcing European consumers to consider new forms of energy supply.
“The energy storage industry is facing growing pains. Yet, despite higher battery system prices, demand is clear,” BNEF energy storage associate Helen Kou, who is the lead author of the report, said in a statement.
–With assistance from David R. Baker.
© 2022 Bloomberg L.P.