What drives energy storage investment?

Much of the growth in energy storage investment is being driven by mandates and targeted subsidies, ranging from solar and wind co-location mandates in China, to the Inflation Reduction Act and state-level policies in the US. New support schemes are also emerging across Europe, Australia, Japan, South Korea, and Latin America.

What will energy storage be like in 2024?

In 2024, the global energy storage is set to add more than 100 gigawatt-hours of capacity for the first time. The uptick will be largely driven by the growth in China, which will once again be the largest energy storage market globally.

How many gigawatts will energy storage add in 2024?

Last year’s record global additions of 45 gigawatts (97 gigawatt-hours) will be followed by continued robust growth. In 2024, the global energy storage is set to add more than 100 gigawatt-hours of capacity for the first time.

What are the requirements for energy storage projects?

Eligible energy storage systems must be larger than 1MW or 1MWh with a minimum discharge duration of 2 hours. The storage-to-plant capacity ratio (in MW) must be larger than 40% and smaller than 100%. Selected entities will benefit from grants of up to €15 million per project and €37.5 million per company.

What are 'new-type energy storage systems'?

The Chinese government continues to focus on what it calls ‘new-type energy storage systems’, a category that includes various technologies, such as batteries, compressed air energy storage, flywheel systems and supercapacitors.

How big will China's energy storage capacity be by 2025?

Projections suggest that by 2025 the installed capacity of new energy storage in China could reach more than 57 GW. Notably, China not only leads the world in battery capacity and development but is also building out large amounts of thermal energy storage linked to concentrated solar power plants.