Growing Opportunities for Energy Storage
The Energy Storage Systems is gaining traction globally and could fundamentally transform electricity market dynamics amid concerns over climate change and environmental sustainability and the volatility of fuel-import prices that has led to the proliferation of renewable energy.
Energy storage can be used to make the overall grid more efficient and resilient, regardless of the generation sources. Nations active in renewable energy development are approaching the use of storage technologies to develop a sustainable power network.
For the transitionto a low-carbon future, enhanced grid infrastructure and power storage technology is crucial to support the integration of variable power generation from renewables.
The global battery energy storage is expected to reach $11.04bn in 2025 and is expected to grow further substantially with a CAGR of 23% by 2030. IHS Marikit forecasts increase in energy storage connected to grids globally from 5GW in 2020 to 15.1GW in 2025.
Asia-Pacific and the US are anticipated to be the leading regions, accounting for 46.2% and 32.4%, respectively, of the total grid battery storage power capacity by 2030. In Asia-Pacific, countries such as China, Japan, South Korea, and Australia will lead the regional market.
As many countries in the Middle East are embarking on their over-ambitious renewable energy programs, energy storage is increasingly becoming a necessity for the region. Advances in digital technologies and rapidly falling prices of batteries are making energy storage a viable option in facilitating the achievement of the region’s sustainable energy goals.
According to Dr Ibraheem Al-Mansouri, Head of Engineering at Masdar Clean Energy, part of Masdar says, “The cost of lithium has decreased rapidly over the past few years and this has helped make it a more viable solution. In the future, it will be likely that redox-flow and metal-air, such as zinc-air batteries, will also have potential for use in the region due to their merits, such as longer storage duration and lifetime.”
Apart from the battery storage use at the utility-scale in maintaining a continuous and flexible power supply, it is also gaining prominence in off-grid applications, particularly in decentralised nature of power generation systems around the Gulf.
A regulatory framework, supportive policies and market design will be crucial in deciding the deployment of energy storage projects over the coming years.