Energy storage industry investment focus

What is the future of energy storage?

Storage enables electricity systems to remain in balance despite variations in wind and solar availability, allowing for cost-effective deep decarbonization while maintaining reliability. The Future of Energy Storage report is an essential analysis of this key component in decarbonizing our energy infrastructure and combating climate change.

What drives energy storage growth?

Energy storage growth is generally driven by economics, incentives, and versatility. The third driver—versatility—is reflected in energy storage’s growing variety of roles across the electric grid (figure 1).

What is the growth rate of industrial energy storage?

The majority of the growth is due to forklifts (8% CAGR). UPS and data centers show moderate growth (4% CAGR) and telecom backup battery demand shows the lowest growth level (2% CAGR) through 2030. Figure 8. Projected global industrial energy storage deployments by application

Will energy storage grow in 2023?

Global energy storage’s record additions in 2023 will be followed by a 27% compound annual growth rate to 2030, with annual additions reaching 110GW/372GWh, or 2.6 times expected 2023 gigawatt installations. Targets and subsidies are translating into project development and power market reforms that favor energy storage.

Why is energy storage important?

Energy storage is a potential substitute for, or complement to, almost every aspect of a power system, including generation, transmission, and demand flexibility. Storage should be co-optimized with clean generation, transmission systems, and strategies to reward consumers for making their electricity use more flexible.

How can energy storage help the electric grid?

Three distinct yet interlinked dimensions can illustrate energy storage’s expanding role in the current and future electric grid—renewable energy integration, grid optimization, and electrification and decentralization support.