The global energy storage market will expand 13-fold by 2024, according to new research from Wood Mackenzie Power & Renewables on Tuesday.
The global storage market is expected to grow from 12 gigawatt-hours (GWh) to 158 GWh by 2024, according to the report, Global Energy Storage Outlook 2019: 2018 Year-in-Review and Outlook to 2024.
Energy storage has been creeping into decarbonizing markets over the past five years, the report showed.
In addition, the report said energy storage would become a key technology in the electricity grid system and become a necessary technology to enhance system flexibility and enable clean, rapid system balancing, while "de-risking ever increasing intermittent assets and portfolios."
Commenting on the report, Ravi Manghani, Wood Mackenzie Power & Renewables research director, said that from 2013 to 2018, the company saw fledgling market growth, which was reflected in a global GWh compound annual growth rate (CAGR) of 74%, although it observed relatively small deployment totals of between 7 GW and 12 GWh for the period.
“Nevertheless, these developments have shifted the minds of global regulators, policy makers, grid operators, asset operators and developers, in terms of how energy systems can be balanced," he said.
"Market structures have generally struggled to keep up with the pace of this technology, illustrated by the limited number of revenue streams available to appropriately compensate storage. More than half of the GWh during this period came online in 2018 alone, beckoning an inflection in storage demand,” he explained.
- 2018 was record-breaking year
A Wood Mackenzie Power & Renewables report for 2018 saw 140% year-on-year growth in GWh terms – with a total of 3.3 GW to 6GWh deployed globally.
In addition, between 2019 and 2024, Wood Mackenzie Power & Renewables expects major storage markets to thrive - with a more mature, but still early stage GWh CAGR of 38%," the report stated.
Additionally, deployment numbers are expected to boom to between 63GWh and 158GWh.
"The U.S. and China are projected to dominate the market, making up 54% of GWh deployed capacity by 2024. This will be driven by market reforms and state mandates," the report showed.
By Gulsen Cagatay