Annual battery storage installations will surpass 400GWh by 2030, representing a ten-fold increase in current yearly additions.
This is according to the latest modeling from Rystad Energy that shows annual capacity additions will snowball in the coming years as storage becomes crucial to the world’s energy landscape.
Global BESS capacity additions expanded 60% in 2022 over the previous year, with total new installations exceeding 43 GWh. A further 74GWh will be added this year – a 72% increase – primarily driven by cost reduction in BESS systems in addition to incentives in North America, governmental funding programmes in Europe, coupled with robust renewable capacity expansion in mainland China.
Assuming a status-quo policy scenario, Rystad Energy projects annual installations will surpass 400GWh by 2030. This correlates to capacity additions of about 110GW by 2030 on a power basis, almost equivalent to the peak residential power consumption for France and Germany combined. This projection is generally aligned with our climate change scenario compliant with 1.9-degree Celsius carbon budget.
Tanjent’s PowerBanx X battery storage, in black enclosure (Image: Tanjent)
Government policies are playing an important role in incentivizing investments and capacity expansion. Last year’s US Inflation Reduction Act has catalyzed renewable and clean tech expansion, boosting expected solar and onshore wind capacity by 40% and expecting to add more than 20GW battery capacity compared to before the Act. As result, the US battery capacity will exceed 130GW by 2030.