The global energy storage market will continue to exhibit a diverse development trend in the future, with a particular focus on the energy storage demand in Africa and Europe.
China: The energy storage market in 2023 is experiencing sustained growth. The decline in prices of lithium carbonate and silicon materials has lowered the cost of battery packs and components, leading to a reduction in the domestic energy storage tender price to 1.1 yuan/wh, marking the arrival of the era of cost-competitive energy storage. The shared energy storage model has become mainstream, enabling efficient utilization of distributed energy resources and energy storage systems for optimized energy allocation and absorption. With the widening of peak-to-valley price differentials and the implementation of a two-part electricity pricing system, the commercial and industrial energy storage market is experiencing rapid non-linear growth. It is estimated that in the next few years, the domestic energy storage capacity demand will continue to increase, reaching 43/129 GWh in 2023/2025, with a year-on-year growth of 180%. The Compound Annual Growth Rate (CAGR) from 2022 to 2025 is projected to be 103%.
United States: In 2023, the US energy storage market set a new record for installations. Despite a slight delay in energy storage grid connection in Q1, multiple favorable factors are expected to drive rapid market growth. Continuous rise in residential electricity prices, smooth component clearance, the implementation of the Investment Tax Credit (ITC) policy, and the challenges of grid coordination and frequent blackouts are among the favorable factors leading to a quarterly increase in energy storage installations in the US. It is projected that the US energy storage capacity demand will reach 25/69 GWh in 2023/2025, with an 80% year-on-year growth in 2023 and a CAGR of 72% from 2022 to 2025.
Europe: In 2023, the European energy storage market is currently in the phase of depleting dealer inventories. However, the recent significant decline in natural gas prices has resulted in reduced energy demand and accumulation of dealer inventories. Nevertheless, in the long term, natural gas prices in Europe are expected to gradually rise, and the issue of energy dependency remains severe, driving Europe towards the major trend of achieving energy independence. The low penetration rate of household energy storage, which is currently below 3%, indicates significant potential for the European residential energy storage market, while the commercial and industrial and large-scale energy storage markets are also experiencing rapid growth. It is projected that the European energy storage capacity demand will reach 12/29 GWh in 2023/2025, with a 47% year-on-year growth in 2023 and a CAGR of 53% from 2022 to 2025.
Emerging Markets: Emerging markets such as South Africa and Vietnam have become shining stars in the energy storage market. South Africa faces challenges with aged thermal power units and an aging grid, resulting in frequent blackouts and driving high demand for photovoltaic energy storage. Meanwhile, Vietnam's power crisis has highlighted the disparity in power supply between the north and south, with surplus power supply in the south and severe power crisis in the north, thus rapidly highlighting the demand for photovoltaic energy storage. It is expected that emerging markets such as South Africa and Vietnam will experience non-linear growth in energy storage demand.
In conclusion, the global energy storage market will continue to maintain a high growth trend, with Africa, Europe, and other emerging markets becoming important growth points for energy storage demand. As technology continues to innovate and costs decrease, energy storage will garner increasing attention from governments and businesses worldwide, making a significant contribution to global energy transformation and sustainable development. Policy support and energy transition will drive continuous expansion of the energy storage market, laying a solid foundation for the optimization and intelligent development of the global energy landscape.
Post time: Aug-04-2023
