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Several trends worth paying attention to in the energy storage market in 2022

Storage Lithium Batteries     2022-01-06
 
 
 
According to industry estimates, by the end of 2030, the energy storage industry will have installed a total of 358 gigawatts (GW)/1,028 gigawatt hours (GWh), breaking the 1 terawatt (TW) threshold. 2022 is expected to bring continuous growth, mainly from the following Look at several aspects.
 
First: The cost of battery energy storage continues to fall
 
In recent years, improvements in materials and manufacturing processes are gradually advancing the reduction of battery energy storage costs. Compared with mainstream pumped storage technologies, cost competition has become more intense.
 
In battery energy storage projects, investment costs account for approximately 69%. Among them, the battery component cost accounted for the highest proportion, reaching 55%, followed by the BOS and EPC cost accounting for 12%/10%, respectively, and PCS accounting for 3%.
 
According to BloombergNEF data, the global average price of lithium-ion battery packs in 2020 is about US$137/kWh. By 2023, this price may drop to US$100/kWh, which is equivalent to a 89% drop since 2010.
 
Second: There is a lot of room for improvement in industry policies
 
As the deployment of renewable energy expands, the energy storage system, as the best partner, will play an active role in frequency modulation. Then, for the growing energy storage market, its policy and regulatory space will inevitably be further improved.
 
Take the US energy storage market as an example. In terms of policy, if the US continues to provide independent energy storage investment tax credits or optimizes all aspects of energy storage policies and supervision, then the US energy storage market will have a lot of room for growth in 2022. Secondly, a sound and orderly industry environment is also inseparable from the promotion of policy supervision.
 
Third: Long-term energy storage becomes more important
 
Energy storage plays an important role in the global promotion of the "energy revolution". Although the current global energy storage policy is showing a positive trend, those who are familiar with the energy storage industry know that the biggest problem with energy storage is that in addition to safety and cost, there is timeliness.
 
Taking the US energy storage market as an example, the average duration of all energy storage systems has increased by more than 2 hours. At the same time, there are more and more real situations in which 4-hour energy storage systems are combined with renewable energy. In the future, energy storage will inevitably use long-term energy storage technology. Only by overcoming the direction can the "energy revolution" be truly realized.
 
Fourth: Labor shortage poses a threat to continued growth
 
The rapid growth of energy storage will inevitably bring about labor shortages and shortages of technical talents. Although the industry currently provides employee training and universities offer professional courses, it is still difficult to provide a large number of technical talents in the short term.
 
In the face of a new type of industry, in addition to the difficulty of rapid advancement in technology, there are also factors such as people's way of thinking, training mode, and organizational structure. The energy revolution will inevitably present various challenges. How to promote industry talents to build the cornerstone of industry progress is still particularly important.
 
Fifth: The unbalanced supply of raw materials will still be a challenge in the short term
 
In the context of the high growth of new energy vehicles, the demand for lithium-ion batteries has hit a record high. According to a recent report, the global lithium-ion battery market is expected to grow from US$41.1 billion in 2021 to US$116.6 billion in 2030.
 
The continued growth of electric vehicles will intensify the pressure on the supply of raw materials next year. Recently, we can see that major power battery companies continue to increase their raw material capacity. However, short-term pressure and supply imbalance after expansion will be a major problem for the industry.
 
It is worth mentioning that the high growth of new energy vehicles also brings opportunities for energy storage. Studies have shown that by 2050, electric vehicles may increase energy use by 33% during peak power demand periods. Then, the large-scale energy storage system used to reduce the pressure on the grid and provide the necessary capacity for the fast charging of electric vehicles has become the key to solving the problem.
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