2024 will be a record year for energy storage in the world

Trendforce predicts that in 2024, new energy storage setups will hit 74 GW/173 GWh, growing by 33% and 41% compared to the previous year. Most of these installations, about 85%, will be in China, the United States, and Europe.

Due to an excess supply of lithium carbonate battery cells, their prices have dropped significantly from $0.12/Wh in early 2023 to below $0.06/Wh. These lower prices are anticipated to persist for quite some time.

Increases in individual sectors

Forecasts for 2024 indicate modest growth of 5% and 11% in the home energy storage sector compared to the previous year, reaching a total value of 11 GW/20.9 GWh. However, in commercial and industrial settings, a substantial increase of up to 128% and 153% year-on-year (8 GW/19 GWh) is expected in 2024.

The industrial-scale energy storage segment is projected to grow by 33% and 38% (55 GW/133.7 GWh). This growth is largely fueled by the decline in lithium prices, which enhances the profitability of industrial-scale energy storage facilities and speeds up the development of tender markets. Moreover, the increasing willingness of countries to support energy storage systems at the grid level is a significant contributing factor.

Threats to the further development of the sector

Although the energy storage sector continues to experience significant growth, there are several risks that could impede progress. Chief among these are geopolitical tensions that could disrupt shipping routes, leading to delays in supply chains.

Furthermore, certain local governments are grappling with substantial financial pressures, which could affect their ability to issue tenders for energy storage projects and prolong the time it takes to implement these projects.

Additionally, there’s a noticeable decrease in purchasing power among households, which could hinder growth in the home energy storage sector.

Source: trendforce.com