{"id":2205,"date":"2022-08-18T13:52:03","date_gmt":"2022-08-18T13:52:03","guid":{"rendered":"https:\/\/investinlatam.org\/?p=2205"},"modified":"2022-08-18T13:52:11","modified_gmt":"2022-08-18T13:52:11","slug":"wood-mackenzie-global-energy-storage-growth-continues-despite-headwinds","status":"publish","type":"post","link":"https:\/\/investinlatam.org\/en\/wood-mackenzie-global-energy-storage-growth-continues-despite-headwinds\/","title":{"rendered":"Wood Mackenzie: Global Energy Storage Growth Continues, Despite Headwinds"},"content":{"rendered":"\n

The global energy storage market is poised to reach the 500 GW milestone by 2031, with the U.S. and China accounting for 75% of global demand in a highly consolidated market<\/strong>.<\/p>\n\n\n\n

The US remains the market leader in energy storage, but disruptions from trade measures have led to a decline in demand. The North American country will be a 27 GW annual market by 2031; 83% of that volume is grid-scale<\/strong>.<\/p>\n\n\n\n

However, forecasts in Wood Mackenzie<\/strong>‘s new report show that the U.S. has seen a reduction in demand in 2022 and 2023 of 34% and 27%<\/strong>, respectively, produced by disruptions in the grid and distribution segments following an antidumping and countervailing duty (AD\/CVD) lawsuit in the second quarter.<\/p>\n\n\n\n

\"Wood
Graphic: Wood Mackenzie<\/figcaption><\/figure>\n\n\n\n

An executive order, issued on June 6, brought some relief, announcing a two-year postponement of the new duties on solar cells and modules imported from the countries named in the investigation – Cambodia, Malaysia, Thailand and Vietnam<\/strong>. Most projects are now expected to be delayed, rather than cancelled, and a short-term rebound is possible.<\/p>\n\n\n\n

You may also be interested in<\/strong> > S&P Global: “Energy Transition Faces Fuel Tax Problem”<\/mark><\/strong><\/a><\/p>\n\n\n\n

REPowerEU: the European plan<\/h2>\n\n\n\n

Project economics are also a challenge in Europe. Although the energy storage market is set to grow fivefold by 2031, medium-term growth could stagnate if policies fail to improve the economics.<\/p>\n\n\n\n

Wood Mackenzie<\/strong> says Europe is set to receive a 12 GWh boost from the European Commission’s REPowerEU plan<\/strong>, published in May 2022, which although it does not set a target for energy storage, rising renewable supply targets will drive demand for flexible energy solutions, including such storage assets.<\/p>\n\n\n\n

Moreover, the plan promises to ease permitting processes for both storage and PV systems<\/strong>, facilitating the accelerated growth of new grid-scale and distributed energy projects.<\/p>\n\n\n\n

So far, European demand lags behind that of China <\/strong>and the U.S.<\/strong> The distributed storage segment continues to dominate, but dramatic growth in renewables supply, gas supply shortages and interconnector overloads may drive the region’s grid-scale market over the next decade<\/strong>, the consultancy notes.<\/p>\n\n\n\n

\"Wood
Graphic: Wood Mackenzie<\/figcaption><\/figure>\n\n\n\n

China, dominant<\/h2>\n\n\n\n

The Asian giant leads the Asia-Pacific energy storage market and sets the pace for global growth, but the cost-effectiveness of storage projects in the region remains a challenge for sustainable development.<\/p>\n\n\n\n

Moreover, national policies are focusing on how to improve energy storage cost offsets and increase economic incentives for projects.<\/p>\n\n\n\n

China’s Fourteenth Five-Year Energy Storage Development Implementation Plan<\/strong>, released in March 2022, reiterated the importance of storage in its decarbonization plans, and proposes that by 2025 it will enter the large-scale development phase, with system costs reduced by more than 30%, thanks to improved technology performance<\/strong>.<\/p>\n\n\n\n

Since the plan was published, 12 provinces and cities have announced cumulative energy storage deployment targets for 2025<\/strong>, totaling about 40 GW.<\/p>\n\n\n\n

To access the full Wood Mackenzie<\/strong> report, click here<\/mark><\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The global energy storage market is poised to reach the 500 GW milestone by 2031, with the U.S. and China accounting for 75% of global demand in a highly consolidated market. The US remains the market leader in energy storage, but disruptions from trade measures have led to a decline in demand. The North American…<\/p>\n","protected":false},"author":3,"featured_media":2197,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[7],"tags":[139,141,30,92,131],"class_list":["post-2205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-china-2","tag-energy-storage","tag-renewable-energy","tag-report","tag-usa"],"_links":{"self":[{"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/posts\/2205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/comments?post=2205"}],"version-history":[{"count":3,"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/posts\/2205\/revisions"}],"predecessor-version":[{"id":2211,"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/posts\/2205\/revisions\/2211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/media\/2197"}],"wp:attachment":[{"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/media?parent=2205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/categories?post=2205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/investinlatam.org\/en\/wp-json\/wp\/v2\/tags?post=2205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}