World Bank, US to grow 40% energy storage yearly
The World Bank’s ESMAP and the US Department of Energy, energy storage deployment in emerging markets are expected to grow 40% a year over the next decade, up from 2GW currently installed in emerging markets, resulting in about 80GW of new storage capacity. This will open up new markets and offer tremendous opportunities.
“International Finance Corporation, IFC, expects the energy storage sector will grow significantly in coming years, leading to economies of scale. It has been tracking the storage market over several years; and continues to support energy storage deployment in emerging markets,” according to a recent study commissioned by IFC.
The report says,“To date, we have engaged by means of early-stage venture capital investments, helping to prepare the market for mainstream investments. Some of our noteworthy investments included, Microvast, a China-based manufacturer of especially fast-charging lithium-ion batteries; Fluidic Energy, a manufacturer of zinc-air batteries used to power telecom towers; and AST, from India, which deploys photovoltaic (PV) solar plus batteries to power telecom towers.”
It adds,“While we have observed a remarkable transformation of the market in the last couple of years, with energy storage growing to become part of the mainstream power sector in emerging markets, challenges remain for taking this to scale. Financing appears to be the most pressing of these challenges.
Although energy storage costs are expected to continue decreasing in the years to come, their current levels remain relatively high, enough to restrict access to affordable financing across emerging markets. Innovative investment mechanisms, in coordination with improved industry standards and stronger government support, will be needed to unlock the transformative potential of energy storage.”
The IFC has ambitious goals for creating and opening up markets for clean energy. Supporting energy storage technology is a strategic focus as a means of extending the reach and uses of renewable energy beyond intermittent power.
Energy storage will be a key third component in IFC’s clean energy asset mix, in addition to generation and efficiency. The World Bank Group’s Scaling Solar Programme, which has made it easier and faster to procure solar PV in emerging markets, may be extended to energy storage once costs fall further. Storage technology is well-suited for a similar standardised procurement approach.
