HOME > News

Anticipated Surge: Global Demand for Large-Scale Energy Storage Installations to Soar in 2024

published: 2024-01-03 17:51

According to TrendForce's estimates, the surge in demand for large-scale commercial and industrial energy storage in 2024 is set to fuel substantial growth in the global energy storage sector. In terms of installation increments, both domestic and international markets are poised to experience a surge in demand. It is anticipated that the installation of large-scale energy storage could reach 53GW/128.6GWh, outpacing the installed capacity of household, commercial, and industrial energy storage.

Forecasts on Global Energy Storage Installations for 2024 

In China, despite the rapid growth of new energy projects like wind and solar power, the installation of base load power falls short of meeting the maximum load gap. Hence, there is an immediate need to deploy large-scale energy storage systems to enhance the installed capacity further.

In the United States, large-scale energy storage stands out with exceptional performance and boasts a highly economic and diversified profitability model, signaling significant growth potential.

Turning to Europe, the 2024 market is expected to be primarily propelled by large-scale energy storage. Particularly, the increase in installations in the United Kingdom will significantly elevate the proportion of large-scale energy storage installed capacity.

China: The necessity for large-scale energy storage installations is on the rise.

The commercialization of energy storage is accelerating, with many local governments setting clear capacity goals and implementing policies to encourage installations. Moreover, as the consumption of wind and solar power continues, the demand for large-scale energy storage is expected to surge. TrendForce predicts that the new installations of large-scale energy storage in China could reach 24.8GW/55GWh.

In terms of policies, since September 2023, the Ministry of Industry and Information Technology (MIIT), the National Energy Administration, and other relevant departments have been promoting the development of the electricity spot market. Furthermore, provinces like Shandong and Guangdong are actively promoting energy storage while participating in the electric energy and auxiliary services market.

Forecasts on Energy Storage Installations for 2024 in China

Currently, our country's power system flexibility is in an improving stage, and the demand for flexible resources in the face of a higher proportion of wind and solar power generation is nonlinear. While constructing super-high voltage transmission for large-scale energy storage takes time, the wind and solar bases, along with projects in the markets, exhibit a higher demand for grid capacity. This results in a bottleneck in installations due to an insufficient power grid, emphasizing the urgency for new energy storage to alleviate consumption pressure. In this context, the installation of large-scale energy storage systems becomes even more imperative, leading to a significant surge in the energy storage sector.

U.S.: Large-scale energy storage takes the lead in performance.

In the current year, the U.S. market installations have fallen below expectations due to supply chain disruptions and congested grid connections in 2023. Specifically, large-scale energy storage has borne the brunt of these challenges, facing a more pronounced issue of grid connection delays, thereby hindering the growth of installed demand.

Moving into 2024, the growth rate of installed demand in the United States is expected to slow down. However, large-scale energy storage installations are anticipated to maintain a stellar performance. TrendForce predicts that new installations of large-scale energy storage in the United States could reach 11.6GW/38.2GWh.

Forecasts on Energy Storage Installations for 2024 in the U.S.

The primary driving force behind the demand for large-scale energy storage is the weak grid integration and a higher proportion of solar and wind power. Aging grid transmission and distribution systems in the U.S. have led to delayed grid connections for new energy projects. In terms of applications, the allocated storage ratio for new energy and independent energy storage stands at 70% to 30%. Coupled with ITC subsidies, large-scale energy storage can boast a highly economical and diversified profitability model, showcasing potential for substantial growth.

Europe: Ambitious Renewable Energy Goals Propel Growth.

In 2024, the installation growth rate in the European market is expected to slow compared to 2023, but it remains high, primarily fueled by the increasing adoption of large-scale energy storage. Major European countries witness a surge in demand for large-scale energy storage driven by government bidding projects and market initiatives. The versatility of large-scale energy storage projects, applicable both on the grid and power sides, contributes to their robust growth.

Forecasts on Energy Storage Installations for 2024 in the U.K


For instance, the United Kingdom, as the most established large-scale energy storage market, significantly elevates its short-term energy storage installation goals in its latest future energy plan. The U.K.'s energy storage demand is projected to experience further growth in the short term, propelled by government-introduced policies. In 2024, energy storage installations are expected to see a dramatic increase, maintaining a high growth rate due to a significant rise in grid-side demand, indicating an explosive increment. Additionally, the grid connection time for a substantial increase in energy storage projects is anticipated to coincide in 2024. With this momentum, TrendForce predicts that new installations of large-scale energy storage in the United Kingdom will reach 4.2GW/6.4GWh.

In summary, the robust growth in solar installations highlights consumption challenges, while favorable policies and a thriving bidding market have propelled domestic and overseas large-scale energy storage to prosperity, sustaining global demand for high growth in energy storage. However, economic weaknesses and geopolitical conflicts may impact ocean routes, resulting in a slower increase in installed demand.

announcements add announcements     mail print