The total installed capacity of global energy storage systems is expected to exceed 12GW in 2022

　　Research organization HIS Markit recently stated that 2021 is the beginning of a period of sustained and rapid growth in the global energy storage industry. It is expected that the total installed capacity of energy storage systems deployed this year will exceed 12GW.

　　This is 2GW higher than the company's forecast in February this year, and is expected to be 7GW more than the installed capacity of energy storage deployment in 2020. By 2024, this number will exceed 20GW, and by 2030 it will exceed 30GW. This is roughly in line with the forecast of Bloomberg NEF, a research organization.

　　Interestingly, technology provider Fluence recently cited Bloomberg New Energy Finance's forecast in its S-1 form filed with the US Securities and Exchange Commission (SEC) prior to its planned IPO. Fluence pointed out that other forecasts of the company and other research institutions on the energy storage industry have underestimated the size and opportunities of the energy storage market.

　　Despite the tight supply of batteries, the growth in energy storage systems is expected to remain optimistic. Nicolo Campagnol, a battery technology expert at McKinsey & Company, discussed the production of batteries for electric vehicles in a recent seminar on battery costs. He also made it clear that lithium-ion batteries are also used in large quantities to build battery energy storage systems.

　　In addition to higher energy density nickel-manganese-cobalt (NMC) ternary lithium batteries, some electric vehicle manufacturers are also increasingly using lithium iron phosphate batteries (LFP). In the past, this situation was not common. The LFP battery has also been favored by some energy storage customers, which has exacerbated the limitation of battery supply.

　　Battery manufacturers give priority to orders from automotive customers, after all, these orders are larger and long-term. The demand share of battery energy storage systems is low, so there is the possibility that battery manufacturers do not pay enough attention to it, which increases the risk of battery shortages.

　　Increasing supply tightness may cause more and more energy storage projects to be delayed. However, HIS Markit said that energy storage system integrators’ diversification of battery suppliers means that the tight supply situation will be alleviated within one and a half years.

　　George Hilton, senior analyst of clean energy technology at HIS Markit, said, “The delays related to tight supply have not yet led to any significant decline in the development prospects of the energy storage industry, and as the global supply of lithium-ion batteries continues to expand, we still think the deployment of battery energy storage systems is expected to grow strongly."

　　Policies will become a major driving force for the growth of energy storage projects. China recently announced the deployment of 30GW of energy storage targets by 2025-an important part of the total energy storage target announced by countries around the world this year of 87GW.

　　George Hilton said, "More and more people are paying attention to the energy transition as a way to stimulate green economic growth. Governments have announced a large number of ambitious energy storage targets. This has significantly improved our outlook for the industry. The energy storage industry will continue to see strong growth from now until 2030."

　　China's goal is to become the world's largest energy storage market by 2025, and its growth rate will be significantly faster than other countries and regions. According to HIS Markit's forecast, by 2030, the deployment of energy storage in the United States and Europe is expected to increase by four and three times, respectively, while China's deployment of energy storage in 2030 may be 14 times that of 2020.

　　Lithium-ion battery (LIB) has become the main energy storage solution in modern social life. Among them, lithium iron phosphate batteries are a perfect substitute for lead-acid batteries, and are the first choice for grid-connected peak shaving, off-grid energy storage, photovoltaic energy storage, UPS, data center and other industries.