Energy storage installations around the world will multiply exponentially over the next two decades thanks to falling technology costs and a boom in investment, according to Bloomberg New Energy Finance (BNEF).
In its latest forecast, BNEF states that energy storage capacity will increase from 9 GW/17 GWh in 2018 to 1095 GW/2850 GWh by 2040.
The 122-fold increase will require $662 billion of investment and will be made possible by sharp declines in the cost of lithium-ion batteries, BNEF said. Demand will be particularly strong in the stationary storage and electric vehicle markets.
According to BNEF, falling battery costs will enable them to be used in more and more applications. These include energy shifting, peaking in the bulk power system, as well as well as for customers looking to save on their energy bills by buying electricity at cheap hours and using it later.
Logan Goldie-Scot, head of energy storage at BNEF, added: “In the near term, renewables-plus-storage, especially solar-plus-storage, has become a major driver for battery build. This is a new era of dispatchable renewables, based on new contract structures between developer and grid.”
Just 10 countries are on course to represent almost three quarters of the global market in gigawatt terms, according to BNEF’s forecast. South Korea is the lead market in 2019, but will soon cede that position, with China and the U.S. far in front by 2040. The remaining significant markets include India, Germany, Latin America, Southeast Asia, France, Australia and the U.K.
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