As the process of global energy transition accelerates, new energy consumption is facing a gradual and severe test. Energy storage has become the key point to determine the ceiling of clean energy development. According to data from TrendForce, with the support of favorable policies and a strong market demand, the new installations of global energy storage reached a record high of 20.5GW in 2022, which means that energy storage market has came into a new stage.
New energy storage installations in 2022 arrived at 20.5GW and it will reach 34.9GW/77.9GWh in 2023.
According to TrendForce data, New energy storage installations in 2022 arrived at 20.5GW/42.1GWh and showed a YoY growth rate of 53.4%. The global energy storage market develops stably and has a strong demand. It is expected that the new installations expected to reach 34.9GW/77.9GWh in 2023.
From the policy point of view, the current energy storage policy of each major regional market is mainly about financial subsidies and renewable energy supporting policies, focusing on the synergistic development of PV and energy storage. Under the policy, PV and energy storage industry has huge development potential. Since 2021, China has made a number of energy storage policies covering energy storage technology, construction scale, economics and safety in order to drive the development of energy storage industry, while the United States, Germany, India and other regions have issued relevant policies to support the energy storage market and further promote the rapid growth.
China, Germany and the US are the main incremental markets and will remain dominant
Under the influences of the increase of raw material price, safety issues and epidemics, the global energy storage market ushers in a new cycle of industry development. Actually, since 2021, the global energy storage industry enters a rapid development stage and remains positive in year-on-year growth. As the major incremental markets, China, the US and Europe play a leading role in global energy storage development, with this three markets maintaining a dominant position in terms of new energy storage installations.
According to TrendForce’s report, China added 6.83GW/14.92GWh of new installations in 2022 under a YoY increment of 214%/210% and achieved a twofold increase with new installations expected to reach 9.82GW/22.11GWh in 2023. The new installations of Germany totaled 1.28GW/2.02GWh in 2022, under a YoY increase of 64%/52% and is expected to reach 1.58GW/2.84GWh in 2023. The US has 4.99GW/13.58GWh new installations in 2022 under a YoY increase of 40%/28% and the market is expected to add 11.67GW/30.12GWh in 2023.
Large-scale project is the mainstay of current energy storage installations, and household project has great potential with surging demand.
Large-scale project is the mainstay of global energy storage new installation currently. According to China's data, the new installation of large-scale accounts for 92% of the total new installation in 2022. Under the double carbon target, China issued some policies to guide the development of large-scale energy storage projects. In addition, wind power and PV big bases are planned a total scale of 450GW. The first phrase (95GW) has been started in July last year and is expected to be fully grid-connected in 2023.
Figure: Share of new energy storage installations by type in major regions in 2022
The US is an early developer of the global energy storage industry, and according to data from TrendForce, there was about 4GW new installations in the US in 2022, accounting for about 80% of the total installations and further validating the boom in US large -scale storage. A parts of US energy storage projects were delayed or canceled due to other factors such as the increase of raw material/transportation costs in 2022, while such situation is expected to improve this year. With further growth in US PV installations in 2023 and subsidies for energy storage projects from IRA, it is expected that US energy storage demand will more than double in growth.
European demand has been stronger bringing the fervent development of PV and energy storage market due to the increasing energy price and unstable supply chain. As the main incremental market in Europe, the household energy storage new installations in Germany reached 1.03GW in 2022, accounting for 80% of the total new installations. In February 2022, the German government proposed to abandon fossil fuels in 2035 (previously scheduled for 2040) and achieve a 100% renewable energy supply. In May 2022, the European Union launched RE Power EU to accelerate its green transition, which has also stimulated the growth of energy storage demand to some extent.
Looking ahead to 2023, the positive progress of the global clean energy transition targets has made the trend for energy storage to scale up, and the global energy storage market will enter a newe period for rapid development. In addition to favourable factors such as policies and subsidies, large-scale ground-mounted PV project installations that were previously restricted and backlogged for various reasons will be expected to restart. Based on this, demand from major markets such as China, the US and Europe will be released one after another, and energy storage companies undoubtedly have good opportunities for layout.
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Article content and data from TrendForce Global Energy Storage Market Demand Report, if you want more details about the report, please contact.
Wendy Guo 郭雯雯雯
wendyguo@trendforce.cn
13265680792