Is there a profitability problem with energy storage?

However, storage projects still have a profitability problem, which threatens sustainable development. Selling power at on-grid regulated prices does not bring additional value for storage. Instead, it only creates additional costs for developers. This article draws on Wood Mackenzie’s latest Global energy storage outlook.

What is the future of energy storage?

The demand for energy storage assets and other flexible power solutions will increase in order to accommodate higher renewables penetration, and, as a result, total energy storage capacity will increase 14-fold to reach 67 GW/147 GWh by 2031. The pace of growth varies considerably across European markets.

How many GW will Wood Mackenzie have in 2031?

Wood Mackenzie said it expects 500 GW in global deployment by 2031, with the United States and China representing 75% of worldwide demand. Wood Mackenzie said it sees the United States on a path to be a 27 GW annual market by 2031, and 83% of that figure will be utility-scale storage.

Is Germany still the world's leading residential storage market?

Meanwhile, Germany’s 100% renewable power by 2035 target – driven by its ‘traffic light’ coalition – will mean that the country remains the residential storage market leader, as rooftop solar becomes mandatory for all new commercial and private buildings.

Which countries are preparing for energy storage?

Wood Mackenzie said it expects the United States and China to represent 75% of global energy storage demand in a highly consolidated market. As renewable energy plays a growing role in the electricity grid, energy storage buildout is quickly following behind.

Will energy storage buildout be a big deal in 2031?

As renewable energy plays a growing role in the electricity grid, energy storage buildout is quickly following behind. Wood Mackenzie said it expects 500 GW in global deployment by 2031, with the United States and China representing 75% of worldwide demand.