Global energy storage demand explosion in 2025: why is now the best time for layout?

1.The energy storage market has entered a period of rapid growth

In 2025, the global energy storage industry will usher in a new turning point. With the large-scale integration of new energy into the grid, countries are accelerating the construction of energy storage systems. Especially in the United States, Europe, and Southeast Asia, the demand for grid stability continues to increase. Therefore, energy storage is no longer an option, but the core of new energy systems.

1.1 Increase in penetration rate of new energy

Wind power and photovoltaic installed capacity are growing rapidly, but their power generation fluctuates greatly. Therefore, energy storage has become a key technology for balancing the power grid and peak shaving and valley filling. Meanwhile, as the cost of renewable energy continues to decline, the economic viability of energy storage is also becoming stronger.

1.2 Policies continue to drive the industry forward

The United States is expanding its IRA policy incentives to subsidize energy storage projects. Europe has also announced plans for the construction of a new power grid. Many regions in China have introduced “source network load storage” policies, requiring the allocation and storage of new energy. These policies have led to a rapid increase in the number of energy storage projects.

Energy storage system

2.Which energy storage technologies are most popular in the market?

At present, lithium battery energy storage still dominates. But more new technologies are emerging and gradually becoming competitive.

2.1 Electrochemical energy storage: the most widely used

Lithium iron phosphate (LFP) batteries have become the preferred choice for energy storage systems due to their high safety, long lifespan, and low cost. Many large energy storage power plants use LFP systems. In addition, sodium ion energy storage has also begun to enter the market and has attracted attention due to its low cost.

2.2 Physical energy storage: becoming an important force in regulating the power grid

Pumped storage is the most mature physical energy storage method. Although the construction period is long, it can provide high power output. In addition, compressed air energy storage is being adopted by more countries due to its large scale and long lifespan.

3.Business model welcomes new opportunities

Energy storage is not only a technological device, but also a new business model.

3.1 Industrial and commercial energy storage has become a hot topic

As electricity prices rise, more and more factories are installing commercial and industrial energy storage systems. Enterprises can use energy storage to reduce peak electricity prices and obtain peak shaving benefits. So, there is huge potential for growth in this field in the future.

3.2 Accelerated popularization of household energy storage

The new energy home system (photovoltaic+energy storage+inverter) is very popular. Especially in Europe and Japan, many households install energy storage to reduce electricity bills and serve as a backup power source for power outages.

4.Why is investing in future energy storage worth it?

Energy storage is the deterministic track for the next decade. Because the power grid must be upgraded, and energy storage is the core.

4.1 The cost of energy storage continues to decline

With the expansion of battery manufacturing scale, the cost of energy storage systems has been decreasing year by year. This makes the project return faster and attracts more investors.

4.2 Carbon neutrality targets drive long-term industry growth

Global efforts are being made to reduce carbon emissions. Energy storage can improve the utilization efficiency of new energy, so demand will continue to grow.