Expanding Energy Storage: Challenges and Solutions for 2030

In the face of the climate emergency, the G7 governments have made a bold commitment to increase global energy storage capacity sixfold by 2030. This development is crucial to support the necessary expansion of renewable energies.

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As part of a global initiative, the G7 governments have highlighted the urgent need to rethink our energy storage capabilities to support the expansion of renewable energies. This need is driven by the intermittent production of solar and wind energy, which cannot cover constant energy needs. Thus, to meet consumption requirements during periods of low production, storage capacities need to be significantly increased. The capacity required by 2030 is estimated at 1,500 gigawatts (GW), of which 1,200 GW should come from batteries.

Technological advances in energy storage

The year 2023 marked a turning point with a 130% increase in the installation of new energy storage capacity over the previous year, mainly in the form of batteries. This progress is the result of decades of research and development that have reduced battery costs by over 90% in less than 15 years, making renewable energy storage systems increasingly competitive with fossil fuels.

Energy Storage Economics and Markets

The energy storage market is booming, with key players located in China, the European Union and the United States. Lower battery costs have been a catalyst for this growth, but significant challenges remain to maintain this trend. Diversifying supply chains and increasing production outside China are essential to avoid strategic and vulnerable dependence.

Impact of Critical Metals and Innovations

Dependence on critical metals such as lithium, cobalt and nickel remains a major concern. However, recent innovations in battery technologies, such as sodium-ion accumulators, promise to reduce this dependence. These new technologies could not only minimize the environmental impact of metal extraction, but also lower costs and increase the safety of the materials used. In India, the solar photovoltaic-battery combination is now competitive with new coal-fired power plants. In a few short years, this will be the case in China and against gas-fired power plants in the USA, according to Fatih Birol, Director of the IEA.

Alternative and Complementary Solutions

In addition to batteries, several other energy storage solutions are being explored for their potential to offer flexibility to the power grid. Pumped-storage systems associated with hydroelectric dams and electricity-to-hydrogen technologies are examples of solutions that can complement battery storage. Although more costly and complex to implement, these technologies offer promising prospects for long-term energy storage.

Network flexibility and demand management measures

To effectively integrate increased storage capacities, it is crucial to improve the flexibility of the power grid. Demand management measures, such as variable tariffs and cross-border interconnections, are essential for optimizing renewable energy consumption. These strategies not only reduce costs for consumers, but also stabilize the grid during fluctuations in energy production.
The ambition to triple the share of renewable energies by 2030 poses substantial challenges, but also significant opportunities. Government and industry initiatives will need to be supported by appropriate policies and increased international cooperation to achieve energy storage and efficiency objectives.

Ameresco has completed a 50 MW battery storage system to support Nucor’s expansion in Arizona, marking one of the largest behind-the-meter industrial projects in the United States.
SUNOTEC expands in the Bulgarian market with seven projects combining battery and solar, totalling 763 MWh of storage and 115 MWp of photovoltaic capacity.
Danish fund Copenhagen Infrastructure IV transfers half of its stake in the UK-based Coalburn 2 project to AIP Management, strengthening AIP's energy storage portfolio in the United Kingdom.
Lyten has completed the acquisition of the Northvolt Dwa site in Poland, Europe’s largest energy storage system factory, and plans to deliver its first commercial units before the end of 2025.
SNG Holdings launched trial operations of a 2MW/6MWh energy storage facility in Gotemba, backed by Digital Grid and PHOTON, ahead of commercial commissioning scheduled for November.
The Winchester project will combine 160 MW of storage with two 80 MW solar plants in Cochise County, with delivery expected in early 2027.
Greenflash Infrastructure has acquired a 200 MW standalone storage project in Texas, marking a strategic asset transfer aimed at reinforcing local grid reliability.
Gotion High-Tech presented in Saudi Arabia a modular 20 MWh storage solution aimed at strengthening the country's energy capacity under its Vision 2030 strategy.
The Japanese developer has commissioned a storage unit in Karatsu and plans to deploy 80 facilities by the end of 2026, relying on agreements with local governments and industrial partners.
Energy Plug, Malahat Battery Technology and Quantum eMotion sign strategic agreement to develop quantum-secured energy storage systems, including a NATO-aligned defence initiative.
Greenflash Infrastructure has finalised the acquisition of Rock Rose, a 200 MW energy storage project located in Fort Bend County, to strengthen its ERCOT market portfolio.
SALA Energy commissions its first grid-scale battery storage facility using sodium-sulfur batteries, supported by both public and private financing.
Utility-scale battery storage system costs continue to fall across Asia-Pacific, but the pace of reductions is expected to slow significantly by 2029, according to Wood Mackenzie projections.
StarCharge has secured a 500MWh energy storage order through a strategic agreement with ENERGY INVESTMENT LLC, strengthening its position in rapidly evolving Eastern European markets.
The Vilvoorde site in Belgium now hosts 400 MWh of operational capacity on a total 800 MWh project, marking a key milestone for electricity storage on the continent.
Idemitsu Kosan has commissioned a 15MW/48MWh energy storage facility in Himeji, marking the start of its deployment in grid-scale storage with Japanese public funding.
The Australian government awarded contracts to 20 renewable and storage projects, surpassing the initial 6GW goal under the fourth round of the Capacity Investment Scheme.
The Padua Complex will deliver 400 MW/1.8 GWh capacity with Tesla's support, at a strategic node of the Texas grid, following legislative action to strengthen energy reliability.
Salt River Project will partner with ESS to install a 50 MWh long-duration energy storage system in Pinal County as part of its capacity expansion plan to meet rising demand.
GoldenPeaks Capital and Envision have signed a memorandum of understanding to deploy up to 1 GWh of next-generation battery energy storage systems across several European markets.

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