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New analysis from IHS Markit projects that installations of
energy storage capacity globally will exceed 10 gigawatts (GW) in
2021, more than doubling the 4.5 GW increase in 2020.
IHS Markit released its analysis of energy storage on 15
February, complementing a recent report on "Ten Cleantech Trends in
2021."
The US will account for half of the energy storage installations
in 2021, roughly tripling its pace of capacity growth a year
earlier. "IHS Markit expects the United States to continue to
extend its dominance of the global market, gaining market share
until 2023, when the project pipeline reduces," said George Hilton,
senior analyst, clean technology, at IHS Markit.
From 2025 onward, mainland China's activity will pick up pace
and will drive the overall Asia Pacific region to account for 44%
of annual installations by 2030. In Europe, 2021 will see an
increase of about 70% in annual installations compared with 2020.
Growth will continue into 2022 as well, a year in which IHS Markit
expects that 17 countries will register 100 megawatts or more of
new capacity, up from nine countries in 2020.
"The energy storage industry will begin significant multi-year
growth in 2021, continuing until 2030, as the technology begins to
form a core component of power grids in developed markets and new
opportunities in developing markets continue to emerge," said
Hilton.
For all of the geographical regions, Hilton cited as driving
factors the need "to keep the grid frequency stable and reduce the
intermittency of renewable energy," as renewables continue to take
on larger shares of power output due to decarbonization
initiatives.
US lawmakers are supporting storage for grid reliability
purposes, as IHS Markit found that solar-plus-storage installations
are capitalizing on the extension of the solar Investment Tax
Credit (ITC) that was passed in late 2020. This extension enables
energy storage projects co-located with solar to benefit from a
reduced tax burden through 2025.
In the past six months, 1.3 GW of tenders have been announced or
awarded in the US for storage projects that will be co-located with
solar PV, IHS Markit said.
Other trends
The Cleantech Trends 2021 report identified the following as
other key developments to watch this year:
Growth in solar installations globally of 30% in 2021, vs.
2020, with China accounting for about 35% of new capacity.
Offshore wind installations approximately doubling in 2021 to
10 GW.
"Exponential growth" in proposed low-carbon hydrogen projects
and a runup in stock prices of companies in the hydrogen
space.
The continuation of a multi-year trend of rapid innovation in
solar technology.
Posted 16 February 2021 by Kevin Adler, Chief Editor
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