What do we expect in the energy storage industry this year?

This report highlights the most noteworthy developments we expect in the energy storage industry this year. Prices: Both lithium-ion battery pack and energy storage system prices are expected to fall again in 2024.

What is the New Energy Outlook?

The New Energy Outlook presents BloombergNEF’s long-term energy and climate scenarios for the transition to a low-carbon economy. Anchored in real-world sector and country transitions, it provides an independent set of credible scenarios covering electricity, industry, buildings and transport, and the key drivers shaping these sectors until 2050.

Which country has the most cost-effective energy storage technologies?

Currently, China leads the way on cost-effectiveness for established technologies like compressed air energy storage, flow batteries, and thermal energy storage. The average capex in non-Chinese markets is 68% higher for compressed air storage, 66% higher for flow batteries and 54% higher for thermal energy storage.

How big will energy storage be by 2030?

Energy storage installations globally are expected to experience a 15-fold growth by end-2030, reaching a cumulative 411 GW/1,194 GWh compared to 27 GW/56 GWh at the end of 2021, according to BloombergNEF (BNEF). The research firm estimates that the world will add 387 GW/1,143 GWh of new energy storage capacity between 2022 and 2030.

Which long-duration energy storage technologies have a critical year ahead?

Beyond lithium-ion batteries, other long-duration energy storage (LDES) technologies have a critical year ahead. China has forged ahead with its LDES development and will remain the frontrunner this year, even as US, UK, Australia and other markets support LDES growth.

How much does energy storage cost?

Thermal energy storage and compressed air storage, for example, had an average capital expenditure, or capex, of $232 per kilowatt-hour and $293/kWh, respectively (Figure 1). For comparison, lithium-ion systems had an average capex of $304/kWh for four-hour duration systems in 2023, so generally shorter-term storage.