How Will We Meet All That Demand?
The world continues to produce more energy than ever. The question is, how will we store it all? Indeed, as we look for better ways to ensure grid reliability, power electric vehicles or keep our devices charged, the demand for energy storage is projected to increase sevenfold between now and 2035.
A new report from Lux Research estimates the total energy storage market will reach $546 billion in annual revenue by 2035.
“The energy storage industry is poised for a massive increase in annual revenue and deployment capacity as key innovative technologies, such as solid-state batteries and flow batteries, reach commercialization,” said analyst Chloe Holzinger, one of the authors of “Global Energy Storage Market Forecast 2019.” “We continue to expect electric mobility applications, primarily light-duty passenger vehicles, to be the principal long-term driver of energy storage annual revenue and demand.”
In the stationary category, solar and wind sources drive demand for storage. “Wind and solar will grow to a third of worldwide generating capacity, building opportunities for stationary storage to balance the growth of non-dispatchable renewables,” the report said. “Electricity market reform will enable stationary storage to participate more broadly in more regions. By 2035, more than 40 percent of annual deployments will take place in evolving grids like China, India, Southeast Asia and Africa.”
Over-generation and seasonal variability of renewable sources are likely to be concerns in some regions. Lux said this demonstrates the need to develop ultra-long-duration storage, but the research firm also recommends adopting a best practice that would “link excess renewable generation to other industries like chemicals or transportation through hydrogen generation.”