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Wood Mackenzie: Global storage total to hit 500 gigawatts by 2031

July 28, 2022

Cumulative energy storage deployments worldwide are expected to reach 500GW by 2031, according to Wood Mackenzie’s Global Energy Storage Outlook.

Europe demand lags behind the US and China, as the region’s grid-scale market struggles to stabilise, with only 159 gigawatt hours (GWh) forecasted for the region by 2031, compared to 422GWh for China and 600GWh for the US, the reported revealed.

Dan Shreve, Global Head of Energy Storage at Wood Mackenzie, said: “Growth has stalled in Europe as regulatory barriers fail to improve storage project economics.

“In addition, limited access to power markets and a lack of revenue stacking opportunities, combined with a lack of capacity market auctions, has lowered investment for grid-scale storage assets in Europe.”

Despite this, Germany’s energy storage market continues to grow and is set to become the third biggest energy storage market by 2030, following the US and China.

The European Commission’s REPowerEU plan will boost the EU energy storage market further as it pushes for a higher share of renewable supply in EU Member States.

Europe has already seen a 12GWh increase since the plan was launched in May 2022, which set out a 600GW target for the solar PV market and pledged to ease permitting processes for both storage and PV systems.

[Staff Report]

More: Global storage capacity to hit 500GW in 2030

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