1. Battery storage saw record investment in 2023, with 42GW of batteries deployed globally across various types of installations.
2. BloombergNEF forecasts a 60% growth in global deployments in 2024, with APAC, led by China, accounting for about half of all new additions.
3. The IEA emphasizes the importance of batteries in the power and transport sectors for decarbonization, but further efforts are needed to scale up deployment and reduce costs.
The IEA and BloombergNEF reports highlight a significant increase in investment in battery storage worldwide in 2023, with 42GW of batteries deployed according to the IEA and 44GW/96GWh according to BloombergNEF. BloombergNEF forecasts a 60% jump in global deployments to around 67GW/155GWh in 2024, with a CAGR of 21% to the end of the decade. Energy storage is expected to grow faster than solar PV or wind, with the Asia-Pacific region leading deployments, driven by China.
The falling costs of grid-scale battery energy storage systems will support growth in the market, with lithium iron phosphate becoming the preferred subchemistry for stationary battery energy storage systems. The US is forecasted to be the second largest market after China, with Germany as the third biggest market in the coming decade. The importance of batteries in the global energy transition, particularly in the power and transport sectors, is emphasized by the IEA.
Despite the rapid rise of battery storage, supportive policy frameworks are still needed to scale up deployment, and further cost reductions are necessary to make battery storage competitive with traditional energy generation sources. BloombergNEF suggests that global efforts to increase battery manufacturing and supply chain investments are still falling short of meeting global emissions targets. The Energy Storage Summit Asia in Singapore aims to provide clarity and bring together key stakeholders in the rapidly growing energy storage market.