Global Energy Storage Market & Opportunities

Posted by Global technology interface on May 04, 2022

The growing share of variable Renewable Energy Sources (RES), such as solar and wind, demands a more flexible energy system to ensure that the variable RES is integrated in an efficient and reliable manner. One of the potential solutions to increase renewable energy system flexibility is by including energy storage systems (ESS). ESS helps to stabilize fluctuations in demand and supply side by allowing excess electricity to be saved in large quantities over different time periods. Energy storage also has a key role to play in the transition toward a carbon-neutral economy.


A variety of ESS is developing at a fast pace and is increasingly becoming more market competitive. Focusing on the battery storage technologies, the following are some of the commonly used technologies like lithium-ion (Li-ion), lithium iron phosphate, sodium sulphur and lead-acid batteries. Flow batteries are another promising technology for battery storage projects. Flow batteries are less sensitive to the higher depth of discharge, have a long life cycle, and have unlimited energy capacity, but they have a low energy density and are not yet commercially mature. However, in recent years, most of the market growth has been seen in Li-ion batteries.


The energy storage market generally comprises two divisions: Front-of-the-Meter (FTM)/ Utility-scale and Behind-the-Meter (BTM). The recent International Energy Agency (IEA), Energy Storage report (2021) authored by George Kamiya, indicated that globally, 5 GW of storage capacity were added in 2020, and installations rose by 50% compared to 2019. With China registering 1.6 GW, the United States 1.5 GW, Europe 0.8 GW, and the rest of the world 1.1 GW of the installed capacity. Utility-scale batteries funding rose by more than 60%, driven by the push for renewables investment and the growing presence of hybrid auctions with storage. However, investments in BTM storage fell by 12%, as these assets are generally financed by households and small and medium companies, which were generally more affected by the Covid-19 crisis.


The following are trends to boost growth in energy storage deployment in various markets to meet the net-zero emissions power system.

  • The United States approved over USD 900 billion Covid-19 relief bill in December 2020 that included a two-year extension of the solar investment tax credit including storage deployments tied to solar. Also, over USD 1 billion over five years is funded by USA to support the research and commercialisation of a range of storage technologies, as highlighted in the IEA energy storage 2021 report.
  • In Europe, utility-scale installations dropped due to Covid-19, but were offset by a strong expansion in residential installations (BTM installations). Germany is leading the European market in BTM installations. Europe is also ramping up policy support for storage and carrying out different research projects.
  • The UK has more than 16 GW of battery storage capacity that is being operaterd, under construction or in the pipeline across 729 projects, as mentioned in the International Trade Administration (ITA). Battery technologies will be an important part of the UK’s smart electricity grid, which is estimated to save the UK energy system up to USD 60 billion by 2050.
  • The battery storage trend in China has more than doubled in 2020, this was driven by projects for renewable energy integration and the commissioning of delayed projects. In July 2021, China announced plans to install over 30GW of battery storage by 2025 as per the IEA report.
  • The expansion of renewable energy and the increased dependence on intermittent sources has led the energy storage market to flourish in the Middle East and African markets as reported in Power Technology Research. This region has an operational capacity of nearly 2.2GW with an expected pipeline capacity of 1.2GW.
  • In India, as per the India Energy Storage Alliance (IESA) forecast the FTM energy storage market is expected to grow by 119% from 2020 to 2030. At present, the total installed capacity of battery storage is around 20MWh and there are several ESS projects of 1.3GW that are under tendering or construction phase.


In conclusion, there is a strong demand for ESS globally, to compensate for the intermittent energy production from renewable energy and to achieve net-zero emissions for a carbon-neutral economy. Also, there is a need for support from local governments for changes in policies, making regulations transparent and open, and developing markets for capacity, and flexibility so that ESS can compete with other technologies. If you are a technology company in this sector, you can register on the technology platform Global Technology Interface® (GTI ®) as a technology displayer to showcase and deploy your energy storage technologies. Also, browse through the existing opportunities and explore collaborations possibilities. Given the huge opportunity in this sector, the platform can support you with accessing new markets and leveraging opportunities in this sector.

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