In 2023, the energy storage industry is undergoing significant transformation driven by three major trends: marketization, integration, and globalization. 2023 marks a critical period for the energy storage market. According to data cited by Ningde Times Chairman Zeng Yuqun, the demand for energy storage in 2030 is expected to exceed 1 terawatt-hour (TWh). The era of terawatt-hour-scale energy storage is upon us. With the rapid growth of the energy storage industry, it has become one of the most vibrant sectors. Companies from various backgrounds, including solar, electric power, and lithium-ion batteries, are entering the energy storage race. Additionally, cross-industry enterprises like Wuliangye, Longjit Environmental Protection, Xuetian Salt Industry, Shenghong Group, Wenteng Electric, and ST Kaiyuan from the education sector are accelerating their entry into the energy storage industry.
1. Marketization: The Drive Toward Commercialization
1.1. A Pivotal Year
2023 is a crucial period for the energy storage market, with forecasts indicating that demand for energy storage in 2030 will exceed 1 terawatt-hour (TWh), ushering in the era of terawatt-hour-scale energy storage.
1.2. Diverse Industry Participation
The energy storage sector has become a dynamic arena, attracting companies from various sectors such as solar, electric power, and lithium-ion batteries. Even cross-industry players like Wuliangye, Longjit Environmental Protection, Xuetian Salt Industry, Shenghong Group, Wenteng Electric, and ST Kaiyuan from the education sector are entering the energy storage market.
1.3. Shifting Competitive Landscape
Li Bingwen, Director of Strategic Market and Product Management at Tianhe Energy Storage, notes that the industry is transitioning from an introductory phase to a period of rapid growth, with large-scale applications on the horizon. This transition introduces new variables to the industry’s competitive landscape.
1.4. Emerging Marketization Trends
Key developments in marketization include:
- Policy-Driven Growth: Ongoing policy initiatives fuel marketization.
- Cost Reduction: Decreasing raw material prices and energy storage system costs.
- Innovative Models: Exploration of new business models.
2. Integration: Solar and Energy Storage Synergy
2.1. Solar Industry Momentum
China’s photovoltaic industry has seen impressive growth, consistently leading the world in annual installed capacity and cumulative capacity. Photovoltaics are now integral to renewable energy.
2.2. The Benefits of Integration
Combining solar and energy storage yields numerous advantages:
- Grid Stability: Enhances grid reliability.
- Economic Optimization: Maximizes energy generation and consumption efficiency.
- Environmental Sustainability: Reduces carbon footprint, supporting clean energy goals.
3. Globalization: Energy Storage Goes Global
3.1. Shaping the Global Energy Landscape
Major economies, including the United States, Germany, Italy, the United Kingdom, Japan, and Australia, dominate the global electrochemical energy storage market, accounting for over 90% of new global installations.
3.2. Opportunities Abroad
In Europe, residential and commercial energy storage markets are thriving due to rising natural gas and electricity prices. Germany leads in the European residential energy storage market.
The United States has witnessed remarkable growth, driven by regional factors, particularly in California and Texas.
Conclusion
The energy storage industry in 2023 is defined by marketization, integration, and globalization. These trends are reshaping the energy landscape, providing opportunities for innovation and sustainable energy solutions.
Stay informed about the latest developments in the energy storage sector as it continues to evolve.
Marketization: The Road to Commercializing Electrical Energy Storage
The Challenge of Utilization
Hu Dong, Chief Technical Expert at the State Grid National Electric Power Science Research Institute, highlights the importance of clear electricity pricing models in optimizing energy storage utilization. When pricing models are absent or insufficient, energy storage at new energy installations may fall short of expected utilization hours.
Commercialization Progress
Despite challenges, the commercialization of electrical energy storage is advancing. Policy developments, upstream optimizations, product innovation, and business model exploration are driving this progress. Energy storage is increasingly viewed as a key element in building new power systems.
A Promising Example
Shandong Province’s introduction of independent energy storage stations into a market-based mechanism has revitalized energy storage station operations. The initiative has seen significant participation in spot market transactions, indicating the profitability of independent energy storage models.
Falling Costs
Energy storage system prices have notably decreased, signifying a more cost-effective era. Recent procurement prices for energy storage systems demonstrate this trend, with competitive prices around 1 yuan per watt-hour.
Integration: The Synergy of Solar and Energy Storage
The Rise of Photovoltaics
China’s photovoltaic industry has seen unprecedented growth, cementing its position as a global leader in capacity and technology.
The Benefits of Solar-Energy Storage Integration
Combining solar and energy storage offers substantial advantages, including enhanced grid stability, economic optimization, and environmental sustainability. This integration is becoming a standard practice in various regions.
Globalization: Expanding Horizons for Energy Storage
Shaping the Global Energy Landscape
Leading economies dominate the global electrochemical energy storage market, with a significant share of installations.
Thriving Markets Abroad
In Europe, rising energy costs have spurred growth in residential and commercial energy storage markets. Germany stands out as a leader in the residential sector.
The United States, driven by regional dynamics, particularly in California and Texas, has experienced impressive market growth.
Conclusion
The energy storage industry in 2023 is characterized by dynamic changes in marketization, integration, and globalization. These trends are reshaping the energy landscape, providing opportunities for innovation and sustainable energy solutions. Stay informed to navigate this evolving industry effectively. As two major components of new energy, solar and energy storage are increasingly working together in a deeply integrated manner. Many solar companies are entering the energy storage sector, and numerous enterprises are releasing solutions for solar and energy storage integration. The trend of globalizing energy storage is becoming increasingly apparent. With supply chain advantages, Chinese battery companies have become pillars of the global energy storage industry. Meanwhile, Chinese energy storage products are rapidly entering mainstream countries in Europe and the Americas, with Chinese energy storage companies competing in the global market.
