The global new energy storage sector is currently undergoing a period of rapid expansion. According to the China Energy Storage Alliance (CNESA), the cumulative installed capacity of new energy storage worldwide reached 45.7 GW in 2022. Moreover, the annual new installations reached 20.4 GW, indicating a significant increase in the adoption of energy storage technologies.
China, Europe, and the United States are expected to continue leading the global energy storage market in 2022, collectively accounting for 86% of the market share. This represents a 6 percentage point increase from the same period in 2021, highlighting the growing importance of these regions in driving the energy storage industry.
Looking ahead, the compound annual growth rate (CAGR) of new installed capacity for electrochemical energy storage is projected to be 63.7% from 2022 to 2027. This indicates that the industry is poised for substantial growth and presents attractive opportunities for investment and development.
In terms of electrochemical energy storage, the global installed capacity reached approximately 97 GWh in 2022. CNESA predicts that it will increase significantly to 1,138.9 GWh by 2027, reflecting the strong momentum and adoption of this technology. This is expected to be accompanied by a CAGR of 63.7%, further emphasizing the tremendous potential in the electrochemical energy storage market.
Within the domestic market, there have been notable developments in energy storage projects. The prices of lithium carbonate, a key component in energy storage systems, experienced a rapid decline from January to March 2023. This price reduction has led to an acceleration of domestic energy storage bidding projects since March.
According to statistics from the energy storage and power market, the bidding capacity of domestic electrochemical energy storage reached approximately 27 GWh from January to May 2023. In May alone, the domestic capacity reached around 9 GWh, indicating a significant increase in energy storage installations during this period. These numbers highlight the growing adoption of energy storage technologies within the domestic market and the increasing importance of energy storage in supporting the transition to a cleaner and more sustainable energy system.
Moving to the United States market, the installation of energy storage projects from January to May 2023 has been influenced by fluctuations in supply chain prices and interest rates. As a result, the process of installation and grid-connection projects has been relatively slow during this period.
However, in terms of grid connection planning, as of April 2023, it is expected that 9 GW of electrochemical energy storage will be connected to the grid in 2023, followed by 13.5 GW in 2024. This indicates a positive outlook for energy storage in the United States, with significant capacity additions expected in the coming years. It is anticipated that 2023 will be a pivotal year for actual installations and grid connection projects in the United States, signaling an increasing focus on leveraging energy storage to enhance grid reliability and support the integration of renewable energy sources.
In summary, the global new energy storage sector is experiencing rapid expansion, with significant growth in installed capacity and new installations. China, Europe, and the United States continue to be the key drivers of this growth, accounting for the majority of the global market share. The compound annual growth rate for electrochemical energy storage is projected to be substantial, indicating a strong market outlook. Domestically, the domestic market has seen a surge in energy storage bidding projects, driven by declining lithium carbonate prices. In the United States, although supply chain and interest rate fluctuations have impacted installation processes, there are optimistic prospects for grid connection planning, with substantial capacity additions expected in the coming years. Overall, the global energy storage market is poised to play a crucial role in enabling the transition to a more sustainable and resilient energy system.
