Study carried out by wood mackenzie pointed out that the global energy storage market must reach the 500 GW milestone by 2031 – with the United States and China representing 75% of global demand.
According to the report, the US is expected to have an annual market of 27 GW by 2031; 83% of this volume is grid scale. “However, the latest outlook shows 2022 and 2023 demand downgrades of 34% and 27%, respectively.”
These downgrades occurred as a result of disruptions in the grid-scale and distributed segments of an anti-dumping and countervailing duty (AD/CVD) tariff process in the second quarter.
Antidumping, in this case, is a trade defense instrument. It is characterized as protection of the domestic industry, applied when a given country exports its products at a price lower than that sold in its domestic market.
The compensatory duty is charged with the aim of compensating for any privilege or subsidy applied, directly or indirectly, to the manufacture, production or export of any merchandise.
“The US solar + storage sector has been hit hard by the AD/CVD tariff petition, with approximately 35% of 2022 scale hybrid installations delayed,” Wood Mackenzie experts reported.
“An EO (Executive Order) issued on June 6 brought some relief. The EO announced a two-year delay on new tariffs on solar cells and modules imported from the countries mentioned in the investigation – Cambodia, Malaysia, Thailand and Vietnam. Most projects are now expected to be postponed rather than cancelled, and a short-term recovery is possible,” they highlighted.
European storage market
Europe should get a 12 GWh increase from the plan REPowerEU from the European Commission, launched in May 2022. “Higher renewable supply targets will drive demand for flexible energy solutions, including active energy storage.”
“In addition, the plan promises to facilitate licensing for photovoltaic and storage systems – facilitating the accelerated growth of such projects and on a network scale”, they highlighted.
The segment continues to dominate, but Wood Mackenzie experts said dramatic growth in renewable energy supply, gas supply shortages and overloaded interconnectors could drive the region's grid-scale market forward over the next decade.
China dominates Asia-Pacific forecast
According to the study, the China leads Asia-Pacific energy storage market and sets the pace for global growth. However, the profitability of projects in the region continues to be a challenge for sustainable development.
“National policies are focusing on how to improve offsetting energy storage costs and increase economic incentives for projects,” they explained.
Brazilian storage market
NewCharge Energy projections indicated that the Brazilian energy storage market it could reach an installed capacity of 18 GWh and a cumulative revenue of more than R$40 billion (not considering in-front-of-the-meter applications) by 2030.
