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Energy Storage Industry Outlook from 2024 to 2029

published: 2024-05-13 17:02

The principles governing industrial growth mirror the vertical trajectory of the sector, encompassing its inception, maturation, and establishment.

In 2022 and 2023, China’s new energy sector continued its upward trajectory, with wind energy, solar power, energy storage, power batteries, and related fields experiencing remarkable expansion. Notably, there were substantial increases in installations, shipments, domestic and international transactions, while technological advancements accelerated, positioning China at the forefront of the global industry chain.

Supported by favorable policies, energy storage has emerged as a strategic sector in China's economy. Looking ahead from 2024 to 2029, how will the energy storage industry further evolve?

Technological innovation is the driving force behind industrial progress.

Advancements in electrochemical energy storage technologies, including lithium-ion batteries, sodium-ion batteries, solid-state batteries, and others, are continuously being enhanced. These improvements span various aspects such as energy density, cycle life, and safety. Of particular note, solid-state battery technology holds promise for revolutionizing the energy storage landscape.

The development of hybrid energy storage technologies is gaining widespread attention to cater to diverse application needs. Combining lithium-ion batteries with lead-acid batteries or supercapacitors (referred to as Li-ion capacitors or hybrid capacitors) is expected to enhance system performance and reduce costs.

Moreover, the exploration of novel energy storage technologies such as flow batteries, gravity energy storage, and hydrogen energy storage offers additional options for the industry.

Enhancement of the Industrial Supply Chain

As the energy storage industry progresses, the industrial supply chain undergoes gradual refinement and expansion.

Industry Chain Optimization: With the rapid evolution of the energy storage sector, the industry's chain layout becomes more intricate. Spanning from upstream raw material sourcing and battery cell manufacturing to downstream system integration, operation, and maintenance, a comprehensive industry chain is established.

Capacity Expansion: Enterprises are ramping up production capacity to meet burgeoning market demands. Projections suggest that by 2029, global energy storage battery capacity will exceed 1000 GWh.

Deepened International Collaboration: In the era of global energy interconnectedness, international cooperation within the energy storage domain is poised to deepen. This collaboration will foster technological exchanges, industrial synergies, and market competitiveness.

Increase of China’s electrochemical energy storage projects

Policy Support and Evolving Market Dynamics

Ramped-Up Policy Backing: Governments are poised to intensify their support for the energy storage sector, offering subsidies, tax incentives, and financial backing to drive industry growth.

Incremental Market Mechanism Establishment: The regulatory framework governing energy storage players in the power market will undergo gradual enhancement, leading to a fuller recognition of the value of energy storage.

Standardization of Energy Storage: To ensure the quality and safety of energy storage products, nations will bolster the development of standardized energy storage systems. This effort will facilitate the standardization of energy storage technology. Additionally, the growth potential of peak shaving and frequency regulation will continue to expand.

Expanding Application Scenarios:

  1. Power System Integration: Energy storage's role within power systems is set to expand, encompassing peak shaving, frequency regulation, backup power, and other functions. These applications aim to enhance the efficiency and stability of power grids.
  2. Distributed Energy Storage Deployment: As distributed energy systems flourish, energy storage solutions will find widespread adoption in residential, commercial, and industrial settings, as well as microgrids. These deployments enable self-generation of electricity and facilitate peak and off-peak energy arbitrage.
  3. Synergies with Renewable Energy: Integration of energy storage with wind, solar, and other renewable energy sources will mitigate the volatility inherent in renewables and enhance overall generation efficiency.
  4. Mobile Energy Storage Utilization: Mobile energy storage solutions will see extensive use across various sectors such as emergency power supply, charging infrastructure for electric vehicles, and mobile communications, catering to diverse energy needs.

In essence, the period from 2024 to 2029 promises a golden era for the energy storage industry. Driven by technological innovation, improvements in the industrial chain, policy support, and evolving market mechanisms, the proliferation of energy storage applications will provide robust backing for global energy transition efforts and the pursuit of carbon neutrality goals.

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