Capturing value in the energy transition
The rapidly increase of renewable energy sources paves the way for storage solutions. New regulatory and political incentives programs force actors in the industry to prepare for the new set-up to defend their industry space.
Renewables are now surpassing traditional sources
The global energy crisis has triggered unprecedented momentum behind renewables, with the world set to add as much renewable power in the next 5 years as it did in the past 20. That corresponds to additional 2,400 GW renewables installed, equivalent to China’s current total energy production. Renewables will, based on the two main drivers; cheaper renewables prices and global concerns about energy security, surpass coal and become the largest source of global electricity generation by 2025.
“Renewables will overtake coal as the largest source of electricity generation by 2025”
Intermitted sources drive the need of energy storage
Solar PV and wind power provide energy intermittently, so as the share of renewables increases in generation, volatility of the system will increase. To prevent more frequent mismatch of supply and demand balancing systems are expected to grow in parity of the renewables. One flexible and scalable solution is battery storage systems that can respond to sudden drops in renewable energy generation.
Europe takes up the fight against current leaders
Global battery storage additions are growing to a tenfold by 2035. China will dominate the market, accounting for over half of global installations, although Europe is catching up with an expected market growth at a CAGR of ~16 percent, however still hindered by the energy crisis.
Regions want local resilience and competitiveness
China is also challenged as market leader of renewables by recent political incentives and policies in both US and EU, aimed at enhancing resilience and competitiveness in these areas. One example is the EU's Net-Zero initiative, which aims to strengthen the manufacturing of net-zero technologies within the EU, to provide at least 40% of the EU’s annual deployment of e.g. solar PV and battery storage technology.
Understanding the political and market dynamics
Transitioning towards localized initiatives and supplies will be increasingly crucial in the renewable energy landscape. It's not solely about gaining a larger market share, but also about comprehending the influences of political and market dynamics. Moving forward, it is essential to grasp the regulations and their wider implications to effectively combine local and global strategies, while also forming strategic partnerships and enhancing capabilities.