Average outlook for energy storage procurement

Will energy storage grow in 2023?

Global energy storage’s record additions in 2023 will be followed by a 27% compound annual growth rate to 2030, with annual additions reaching 110GW/372GWh, or 2.6 times expected 2023 gigawatt installations. Targets and subsidies are translating into project development and power market reforms that favor energy storage.

Will energy procurement be a frenzy in 2025?

Expect an energy procurement frenzy in 2025. For the first time in decades, utilities and grid system operators are having to plan for immense load growth. 53 GW of ‘large loads’ – including data centres and manufacturing facilities – will come online over the next 10 years.

How has cost decline impacted energy storage?

This trend may highlight that the cost decline over the past few years has driven energy storage into an era of accelerated diversification in the global market. The European energy storage market added 19.1 GWh of installed capacity in 2024, up 12.4% YoY, with drastic changes in the ESS landscape throughout the year.

Should energy storage be developed?

Developing energy storage has become a global consensus. It was announced at COP29 in late 2024 that global storage capacity will increase to 1,500 GW by 2030, more than six times the 2022 level. As a result, InfoLink maintains a cautiously optimistic outlook for the medium- to long-term development of energy storage systems.

Why is 2024 a good year for energy storage?

2024 is the start of energy storage in the Middle East and Africa, with 2.7 GWh of capacity. Tender projects surged, exceeding 40 GWh, mainly from the UAE and Saudi Arabia. China-funded companies led, winning most announced projects. Intense competition lowered bid prices compared to other regions.

Will 9% of energy storage capacity be added by 2030?

We added 9% of energy storage capacity (in GW terms) by 2030 globally as a buffer. The buffer addresses uncertainties, such as markets where we lack visibility and where more ambitious policies may develop that we haven’t predicted. We revised our buffer calculation methodology in this market outlook.