Just like we would a smartphone or remote control car. Here are some reasons why consumers are investing in energy storage: How energy storage is used: Storage systems are installed at home. If the power from the grid goes out, the backup power storage system is used to allow the home to have electricity.
Investment is also pouring in to energy storage companies. In the first nine months of 2021, these companies raised $5.5bn in venture capital across 59 deals — up from $1.2bn across 91 deals in the same period of 2020, according to Mercom Capital Group. China dominates global production of lithium-ion battery cells.
Forecasts of battery demand are prompting the upsurge in the construction of large-scale manufacturing plants, or so-called gigafactories. “The numbers are changing so fast, people cannot keep up with how many gigafactories are in the pipeline,” says Finamore. Investment is also pouring in to energy storage companies.
The US utility-scale storage sector saw tremendous growth over 2022 and 2023. The volume of energy storage installations in the United States in 2022 totaled 11,976 megawatt hours (MWh)—a figure surpassed in the first three quarters of 2023 when installations hit 13,518 MWh by cumulative volume.
Policymakers in the United States and Europe continue to put forth measures meant to supercharge the sector toward a promising future. Even with near-term headwinds, cumulative global energy storage installations are projected to be well in excess of 1 terawatt hour (TWh) by 2030.
Technology risks: While lithium-ion batteries remain the most widespread technology used in energy storage systems, these systems also use hydrogen, compressed air, and other battery technologies. The storage industry is also exploring new technologies capable of providing longer-duration storage to meet different market needs.