1. Renewable energy deployment accelerated by climate change, geopolitical turmoil, and fuel supply issues.
2. Integration of energy storage technology crucial for efficient renewable energy use and grid stability.
3. Lithium-ion (Li-ion) battery technology dominates the energy storage market, with China leading in production and supply chain control.
Renewable energy, such as solar photovoltaic and wind turbines, is becoming a major source of power due to factors like climate change and fuel supply issues. However, the lack of storage infrastructure limits the efficiency of these technologies.
Integrating technologies that support flexible grid operations, like energy storage systems, can help store excess energy and stabilize prices by using stored electricity during peak hours. Battery energy storage systems (BESS) are a rapidly expanding technology, with the market estimated to grow to $14.8bn by 2027.
China is leading the way in Li-ion battery production, despite holding a small percentage of the world’s lithium reserves. The Chinese government has heavily invested in the lithium supply chain, with generous subsidies and incentives to domestic companies.
Countries like South Korea, Germany, the US, and France are also investing in Li-ion storage plants. However, many countries are falling behind, highlighting the importance of investing in energy storage technologies to secure energy supply chains and avoid geopolitical risks in the future.