Global energy storage capacity is now expected to grow at a compound annual growth rate (CAGR) of 31 percent through 2030, according to Wood Mackenzie’s new global storage outlook.
The market will hit 741 gigawatt-hours of cumulative capacity by 2030.
Front-of-the-meter storage will continue to dominate annual deployments and will account for up to 70 percent of annual total capacity additions to the end of the decade.
Coronavirus and the global storage market
A 17 percent decrease in deployments is expected in 2020, a decline of 2 gigawatt-hours from our pre-pandemic outlook. The global storage market will see wavering growth in the early 2020s, but growth will likely accelerate in the late 2020s, enabling increased renewables penetration and facilitating the power market transition.
Energy storage is still a nascent market globally, but WoodMac observes that stakeholders — whether end consumers or big equity investors — are interested in continuing to invest in the sector and do not appear to be hindered by the pandemic and economic recession impacts.
If anything, the report notes, the transition may be accelerated as governments around the world grapple with how to recover their economies more sustainably than in the past, with upside for the energy storage industry.
U.S. home to half of all global storage capacity in 2030
The U.S. maintains its leading position and will make up over 49 percent (365 gigawatt-hours) of global cumulative capacity by 2030.
Utility resource planning in the U.S. is set to drive deployments over the coming decade. In the past two years, utility approaches to renewables and particularly storage have shifted seismically, as detailed in WoodMac’s latest Energy Storage Monitor report.
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