Currently, apart from the intense confrontation between Iran and Israel in the Middle East, the layout of the new energy storage market is also worth attention.
Global photovoltaic (PV) companies are racing to seize opportunities in the energy storage market. Cross-border energy storage and its integration as a new source of growth and profitability have become a trend. Recently, JinkoSolar, a PV company, revealed that it has provided energy storage system products to customers in Japan, the UK, and the Middle East. Not only domestic PV companies, but also an increasing number of global PV companies have entered the energy storage market since the second half of 2023. They are investing in new areas through self-funded investments, targeted issuances, investment agreements, and other forms to establish "PV + energy storage" business synergy, paving the way for future development and gaining more revenue.
Investment attracted by capacity growth
There is no doubt about the high demand in the energy storage industry. According to the industry analysis platform Energy Storage Leader Alliance, the global installed capacity of new energy storage systems in 2023 was 47.1 GW/103.5 GWh, doubling the figures from 2022 (21.33 GW/43.94 GWh). Additionally, the Energy Storage Leader Alliance also disclosed for the first time that the global installed capacity of residential energy storage systems was approximately 16.1 GWh.
Yu Zhenhua, Vice Chairman and Secretary-General of the Energy Storage Committee of the China Energy Research Society, pointed out that after the explosive growth in 2022, the energy storage industry continued to make significant progress in 2023. The domestic installed capacity of new energy storage increased by nearly 50 GWh in 2023, three times higher than the 2022 level. The rising residential contract electricity prices in Europe have clearly indicated the rigid demand for PV+storage. The penetration rate of PV combined with energy storage in the United States continues to increase, and the premium for paired storage is evident, further driving the continuous growth of the energy storage market.
According to several PV industry executives, the rapid development of the energy storage industry depends on the continuous increase in PV installations. The rapid development of the PV industry has made it a real problem to improve energy efficiency. The combined development of new energy storage and PV allows PV to become independent of constraints such as volatility, intermittency, and randomness. With the expectation of stable growth in PV installations, the future prospects for energy storage are also promising.
Yu Zhenhua stated that as the world comes together to develop new energy to address climate change, there is a stronger consensus. Energy storage, as a key technology to resolve the bottleneck of new energy consumption, will continue to grow. It is estimated that global energy storage shipments will continue to grow in 2024, with a year-on-year increase of more than 35%. With the continuous promotion of electricity reform and the increase in the proportion of independent energy storage in China, the economic viability of large-scale energy storage operations is expected to improve, and the installed capacity of energy storage is expected to increase by more than 40% year-on-year. Europe and other regions will benefit from the demand for energy transition and ensuring power system stability, with the expectation of more than 50% high growth in large-scale energy storage demand.
Analysts from CITIC Securities have provided even more optimistic forecasts, suggesting that global energy storage shipments in 2024 may exceed 250 GWh, and the installed capacity of residential energy storage worldwide is expected to reach 20 GWh, both showing significant year-on-year increases.
Subsidies stimulate market vitality
The global energy storage industry is still in its early stages of development, and favorable policies and related subsidies are key factors driving the growth of global energy storage installations. Guan Shihui, Policy Research Manager at the Zhongguancun Energy Storage Industry Technology Alliance, stated that in recent years, various regions have introduced subsidy policies to promote the development of new energy storage industries. According to incomplete statistics, by the end of 2023, a total of 110 subsidy policies for new energy storage had been issued nationwide. Among them, in 2023 alone, 74 subsidy policies were released, more than double compared to the previous year, accounting for 67% of all subsidy policies. Overall, in 2023, many regions in China increased their support for the new energy storage industry, continuously introducing subsidy policies that directly promoted the development of related entities, including energy storage equipment manufacturers, system integrators, and power plant operators.
The European and American energy storage markets have also seen multiple developments. Stimulated by subsidy policies, several new markets have initiated project planning and construction processes. CITIC Securities also pointed out that in 2023, with high electricity prices and the support of subsidy policies, the demand for energy storage in Europe remained strong. In addition to major markets such as the UK, Italy, and Germany, several countries including Belgium, Sweden, Spain, and Greece will have multiple new projects under construction this year with policy support, which are expected to be connected to the grid from 2024 to 2026.
Source: China Energy News (中国能源The global energy storage market is experiencing significant growth, driven by the increasing demand for energy storage systems and the integration of renewable energy sources such as photovoltaic (PV) systems. PV companies, both domestic and global, are entering the energy storage market to capitalize on the opportunities it presents.
The installed capacity of new energy storage systems worldwide has been rapidly growing. In 2023, the global installed capacity reached 47.1 GW/103.5 GWh, doubling compared to 2022. This growth is fueled by the rising demand for residential energy storage systems, with an installed capacity of approximately 16.1 GWh in 2023.
PV industry executives attribute the rapid development of the energy storage sector to the increasing installations of PV systems. Combining energy storage with PV allows for stable and efficient energy generation, addressing the challenges of volatility and intermittency associated with renewable energy sources. As the PV industry continues to grow, the prospects for energy storage remain promising.
Favorable policies and subsidies play a crucial role in stimulating the energy storage market. Governments worldwide have introduced subsidy policies to support the development of the energy storage industry. In China, 110 subsidy policies have been issued by the end of 2023, with 74 released in that year alone. These policies directly promote the growth of energy storage companies, equipment manufacturers, system integrators, and power plant operators.
The European and American markets have also witnessed significant developments in energy storage. European countries, including the UK, Italy, Germany, Belgium, Sweden, Spain, and Greece, are experiencing strong demand for energy storage due to high electricity prices and supportive policies. Multiple new projects are planned and under construction in these regions, expected to be connected to the grid between 2024 and 2026.
Analysts project continued growth in the energy storage market. It is estimated that global energy storage shipments will increase by over 35% in 2024, with the installed capacity of energy storage growing by more than 40% in China. Furthermore, forecasts suggest that global energy storage shipments in 2024 could exceed 250 GWh, with residential energy storage reaching an installed capacity of 20 GWh, both showing significant year-on-year increases.
Overall, the global energy storage market is expanding rapidly, driven by increasing installations and supportive policies. PV companies are actively entering the energy storage market to leverage the growing demand and explore synergistic opportunities between PV and energy storage systems.
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