EnergyTrend has identified a significant surge in orders within the energy storage market recently. According to data from Caixin Press, the field of energy storage dominated carbon-neutral financing in May, with a total financing amount of approximately 2.84 billion yuan. Numerous companies are now focusing on the international energy storage market.
Graph: Part of Overseas Orders in Energy Storage
Energy storage, as a flexible resource, plays a vital role in supporting the large-scale grid connection of renewable energy. Developed countries like the United States, the United Kingdom, and Australia have implemented various policies and regulations to drive the development of energy storage and facilitate the low-carbon energy transition. As a result, the promotion of the energy storage industry is currently underway. The progress of global energy transition varies, leading to divergent advancements in energy storage. EnergyTrend has compiled recent changes in overseas energy storage policies and related subsidies.
To promote clean energy, the UK Environmental Audit Committee (EAC) recently conducted a survey on the potential technological advancements in solar installations. In a letter to Grant Shapps, the UK Minister for Energy Security and Net Zero Emissions, the EAC called for the removal of value-added tax (VAT) on battery storage systems. Additionally, the EAC highlighted the significance of exempting VAT on storage devices for new solar system installations or their installation on existing rooftops.
UK: VAT on solar supporting energy storage will be removed
By advocating for the elimination of VAT, the EAC aims to unlock the full potential of residential solar power. The UK government plans to discuss regulations pertaining to the removal of VAT on energy-efficient systems, which would encourage more homeowners to embrace solar power. The EAC also expressed concerns about increasing access to the national grid for solar power.
Spain: Plans to Provide $170 Million in Funding for Deployment of Energy Storage Projects
Meanwhile, Spain intends to allocate 160 million euros in funding for energy storage projects within the country. The objective is to invest in 600 MW of grid-connected energy storage projects by 2026. MITECO initiated a public consultation on this funding plan on June 6 and is currently inviting public comments on the proposal.
The funding, depending on the number of applications, will cover 40% to 65% of the project costs. Eligible energy storage projects will be evaluated based on their economic viability and their ability to support renewable energy grid integration. Job creation and business opportunities resulting from the project’s operation and establishment will also be taken into consideration. Moreover, the Spanish government has set a target of deploying 20 GW of energy storage capacity by 2030.
U.S.: NIS adopts $80 million incentive program
The Minnesota Senate recently approved an incentive program worth $80 million aimed at encouraging developers to establish and implement solar power facilities, energy storage systems, microgrids, and grid resiliency facilities.
Within this bill, $7 million is allocated to the first incentive program for energy storage system deployment, and $250,000 is allocated to a research project investigating the role of energy storage systems in achieving 100 percent decarbonization. The Minnesota Solar Energy Industry Association (MnSEIA) responded by stating that the comprehensive bill on environment, natural resources, climate, and energy finance and policy will now be submitted to Governor Tim Walz for signing into law.
Currently, China has experienced significant progress in the construction of demonstration projects, exploration of business models, and development of policy systems in the field of energy storage. The market for energy storage in China is steadily expanding, and there are valuable lessons to be learned from the supportive policies implemented in countries like the United States, the United Kingdom, and Australia.