Several trends to watch in the energy storage market in 2022

　　In the foreseeable future, the energy storage market will usher in a new round of explosive growth, which is caused by factors such as the increasing demand for energy and the promotion of measures by governments to reduce carbon emissions.

　　SES Power has nearly two decades of experience in lithium battery energy storage products. We are very familiar with this market. We have launched lithium iron phosphate batteries that replace lead-acid batteries, home energy storage products similar to Tesla Powerwall, and customized lithium batteries. Ion battery pack, etc. We predict that by the end of 2030, the energy storage industry will have installed a cumulative 358 gigawatts (GW)/1,028 gigawatt hours (GWh), breaking the 1 terawatt (TW) threshold, and 2022 is expected to bring continuous growth, mainly from the following From one aspect.

　　A: The cost of battery energy storage continues to decline

　　In recent years, improvements in materials and manufacturing processes are gradually driving down the cost of battery energy storage, making it more cost-competitive with mainstream pumped storage technologies.

　　In battery energy storage projects, the investment cost accounts for about 69%. Among them, the cost of the battery pack accounts for the highest proportion, reaching 55%, followed by the cost of BOS and EPC, 12%/10% respectively, and the proportion of PCS 3%.

　　According to BloombergNEF data, the global average price of lithium-ion battery packs in 2020 is about $137/kWh. By 2023, this price may drop to $100/kWh, which is equivalent to an 89% drop since 2010.

　　B: There is a lot of room for improvement in industry policies

　　As the deployment of renewable energy expands, the energy storage system, as the best partner, will play an active role in frequency regulation. Then, for the growing energy storage market, its policy and regulatory space will inevitably be further improved.

　　Taking the U.S. energy storage market as an example, in terms of policy, if the U.S. continues to provide investment tax credits for independent energy storage or optimize all aspects of energy storage policies and regulations, the U.S. energy storage market will have a lot of room for growth in 2022. Secondly, a good and orderly industry environment is also inseparable from the promotion of policy supervision.

　　C: Long-term energy storage becomes more important

　　The world is promoting the "energy revolution", in which energy storage plays an important role. Although the current global energy storage policy shows a positive trend, people familiar with the energy storage industry know that the biggest problem of energy storage is not only safety and cost, but also timeliness.

　　Taking the U.S. energy storage market as an example, the average duration of all energy storage systems has increased by more than 2 hours. At the same time, there are more and more actual situations in which 4-hour energy storage systems are combined with renewable energy. In the future, long-term energy storage technology must be used as the mainstay of energy storage. Only by conquering the direction can we truly realize the "energy revolution".

　　D: Labour shortages threaten continued growth

　　Under the trend of rapid growth of energy storage, there will inevitably be a shortage of labor and a shortage of technical talents. Although the industry currently provides employee training and universities offer professional courses, it is still difficult to provide a large number of technical talents in the short term.

　　In the face of a new industry, in addition to the difficulty of rapid technological progress, there are also factors such as people's way of thinking, training mode, organizational structure and so on. The energy revolution will inevitably bring about various challenges, and how to promote industry talents to build the cornerstone of industry progress is still particularly important.

　　E: Unbalanced supply of raw materials will remain a challenge in the short term

　　In the context of the high growth of new energy vehicles, the demand for lithium-ion batteries has reached a record high. According to a recent report, the global lithium-ion battery market is expected to grow from $41.1 billion in 2021 to $116.6 billion in 2030.

　　The continuous growth of electric vehicles will intensify the pressure on raw material supply next year. Recently, it can be seen that major power battery companies continue to expand their production capacity of raw materials, but short-term pressure and imbalanced supply after expansion will be a major problem faced by the industry.

　　This situation has led to a substantial increase in the price of lithium batteries, and SES Power is also facing significant cost pressure. However, we have in-depth cooperation with famous factories such as Yiwei Lithium Energy, Ganfeng Lithium Industry, CATL, BYD, etc., and we can bear it for the time being. price fluctuations. However, we have also launched energy storage systems using echelon batteries according to market needs, such as 12V100Ah, 12V200Ah, 24V100Ah, 24V200Ah, 36V100Ah, 48V50Ah, 48V100Ah, etc., which use square aluminum-shell lithium iron phosphate cells, which can meet the requirements of guaranteeing performance. , the needs of customers who are discerning enough about prices.

　　It is worth mentioning that the high growth of new energy vehicles also brings opportunities for energy storage. Research shows that by 2050, electric vehicles could increase energy use by 33% during periods of peak electricity demand. Then, large-scale energy storage systems to relieve grid stress and provide the necessary capacity for fast charging of electric vehicles are the key to solving the problem.

　　F: comment at the end

　　As of 2020, the energy storage market share in the Asia-Pacific region exceeds 45.0%. As major economies such as China and India continue to grow and renewable energy expands, so does the need for reliable electricity. Based on the trend of distributed growth, it is predicted to drive the market growth in the short term.

　　Second, improved energy storage technology could allow electricity providers to save excess electricity for later use, thereby increasing the reliability and flexibility of the grid in terms of generation, transmission and distribution. Short-term and seasonal energy storage systems, then, will help balance power distribution with economic benefits.

　　In addition, the demand for continuous power will grow exponentially in the coming years due to industrialization, infrastructure, and workforce development, a trend that will positively impact the energy storage industry landscape.

　　This is an industry full of opportunities in the future, and SES Power looks forward to working with you to seize the opportunities.