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Global Power Industry News Update August 2019

Posted by: James Turner
Industry News

Global energy storage will climb to 1,000GW by 2040

The global energy storage market is expected to reach 1,000GW of capacity by 2040, according to new research from BloombergNEF (BNEF).

An extra 9GW was installed in 2018 and predictions expect 1,095GW by 2040, with the majority of storage coming from utility-scale projects. This 122-fold increase will be made possible by sharp declines in the cost of lithium-ion batteries, on top of an 85% reduction in the 2010/18 period. It will require a total global investment of £547 billion.

The report forecasts a further halving of battery costs per kWh as demand takes off in both the stationary storage and electric vehicles market.

Currently, only 10 countries are on course to represent almost three quarters of the global market in gigawatt terms. They are the UK, Australia, Germany, South Korea, China, USA, India, Latin America, Southeast Asia and France. 

The report reveals that energy storage will become a practical alternative to new build electricity generation or network reinforcement, with total demand for batteries from the stationary storage and electric transport sectors forecast to reach 4,584GWh by 2040.

The falling costs of wind, solar and battery technology mean the renewable sources could make up almost 40% of the world’s electricity by 2040. This is in contract to the 7% which is current accounts for. Meanwhile, passenger electric vehicles could become a third of the global passenger vehicle fleet by 2040, up from less than half a percent today, adding huge scale to the battery manufacturing sector.

Analysis suggests that cheaper batteries can be used in more and more applications. These include energy shifting (moving in time the dispatch of electricity to the grid, often from times of excess solar and wind generation) and peaking in the bulk power system (to deal with demand spikes), as well as for customers looking to save on their energy bills by buying electricity at cheap hours and using it later.

Demand for storage will increase to balance the higher proportion of variable, renewable generation in the electricity system, according to BNEF, and batteries will increasingly be chosen to manage this dynamic supply and demand mix.

BNEF Head of energy storage Logan Goldie-Scot said: “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.” Full story.

Navartis are on the forefront of the energy storage industry, supplying key technical white-collar professionals to projects across the UK, Australia and Europe. If you’re looking for your next freelance or permanent role visit our Power jobs page or contact us here.

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