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					</table><p>Production costs of solar modules saw a 42% drop in China over the past year, settling at $0.15 per watt, providing Chinese manufacturers with a substantial cost advantage over their international counterparts.</p>
<p><a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a>&#8216;s report, &#8216;Top of the Charts: Five Low-Carbon Tech Trends Worth Tracking,&#8217; highlights the decline in Chinese solar hardware costs and explores the rapid growth of renewable energy, endeavors to diversify the supply of battery raw materials, advancements in carbon capture and storage, and the increasing adoption of domestic heat pumps.</p>
<p>The report emphasizes the broadening scope of policies aimed at supporting the development of domestic supply chains for low-carbon technologies and the exploration of alternative sources for critical minerals to decrease global reliance on China.</p>
<p>Despite decreased solar module production costs, the report acknowledges that challenges persist, and costs may remain high in other sectors.</p>
<p>Malcolm Forbes-Cable, Vice President of Upstream and Carbon Management Consulting at Wood Mackenzie and co-author of the report, notes that addressing challenges, such as the $70 billion investment required for global carbon capture, utilization, and storage (CCUS) transport and sequestration infrastructure by 2030, necessitates collaborative global solutions.</p>
<div id="attachment_61472" style="width: 867px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-61472" class="wp-image-61472 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-4.png" alt="" width="857" height="509" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-4.png 857w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-4-300x178.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-4-768x456.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-4-650x386.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-4-624x371.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-4-600x356.png 600w" sizes="(max-width: 857px) 100vw, 857px" /><p id="caption-attachment-61472" class="wp-caption-text">Module type: M10 PERC. All prices are ex-works prices from the factory in the region in question. Source: Wood Mackenzie</p></div>
<p>As the leading global solar module powerhouse, China currently holds an 80% share of the world&#8217;s capacity, a dominance evident in the remarkable surge of domestic installations.</p>
<p>The impact of China&#8217;s prowess is particularly evident this year, with its domestic additions of solar capacity projected to be twice the combined additions of both the United States and the European Union.</p>
<p><strong>Renewables share by 2050</strong></p>
<p>The accelerating success of renewables, driven primarily by the rapid expansion of wind and solar energy, marks a transformative decade in power generation. Wood Mackenzie noted that by 2050 these renewable sources will contribute to over 50% of the global power supply, signifying a significant shift toward cost-effective and scalable power solutions.</p>
<p>This transition extends beyond energy production to the supply chain, as illustrated by lithium and cobalt, which exemplify the potential for reshaping the base materials.</p>
<p>The emergence of price signals is prompting new investments and expanding capacity, laying the groundwork for more extensive and diverse future value chains for base metals and battery raw materials.</p>
<p>According to the report, the next decade could substantially surge CCUS capacity from 80 million tons per annum (MTPA) to 500 MTPA.  This increase is attributed to evolving support mechanisms and regulatory changes, injecting significant momentum into the CCUS sector.</p>
<p>Europe&#8217;s thriving heat pump sector further underscores the momentum behind the transition to low-carbon alternatives. With year-on-year growth exceeding 30%, the sector is experiencing remarkable expansion, setting new records in terms of connections for both air- and ground-source heat pumps.</p>
<p>By injecting $130 billion into the solar sector in the current year, China is <a href="https://www.mercomindia.com/china-to-manufacturing-capacity-until-2026" target="_blank" rel="noopener">poised</a> to control over 80% of the global polysilicon, wafer, cell, and module manufacturing capacity within the next three years.</p>
<p>As outlined in another recent Wood Mackenzie report, the projection of over 1 TW of wafer, cell, and module capacity becoming operational by 2024 indicates that China&#8217;s augmented capacity will effectively satisfy worldwide demand until 2032.</p>
<p>In another report, Wood Mackenzie <a href="https://www.mercomindia.com/china-230-gw-solar-and-wind-2023" target="_blank" rel="noopener">said</a> China will install a record-breaking 230 GW of wind and solar capacity in 2023, more than twice as many installations as in the U.S. and Europe.</p>
<p>The expected addition far <a href="https://www.mercomindia.com/china-addition-solar-wind-2023" target="_blank" rel="noopener">exceeds</a> the 160 GW renewables target China had <a href="https://www.mercomindia.com/china-addition-solar-wind-2023" target="_blank" rel="noopener">set</a> for the year, up 13.5% from the actual installations in 2022.</p>


China’s Solar Module Production Costs Plunge 42% in 2023


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					</table><p>Energy storage installations worldwide are projected to reach a cumulative of 411 GW by the end of the decade, according to <u><a href="https://about.bnef.com/" target="_blank" rel="noopener">BloombergNEF (BNEF)</a></u>. In its 2H 2022 Energy Storage Market Outlook, BNEF saw an additional 13% of capacity by 2030 to its previous estimates.</p>
<p>The additional capacity accounts for roughly 46 GW and is primarily driven by recent policy developments. The most notable of these new policies include the U.S. Inflation Reduction Act (IRA), which provides more than $369 billion in funding for clean technologies, and the European Union&#8217;s <a href="https://mercomindia.com/eu-proposes-mandatory-rooftop-solar-for-all-new-buildings/" target="_blank" rel="noopener">REPowerEU</a> plan to make Europe independent from Russian fossil fuels before 2030.</p>
<p>With its large volumes of funds allocated for wind, solar, and storage tax credits, IRA has made way for the U.S&#8217;s acceleration in clean energy. The law will drive roughly 30 GW of energy storage build from 2022 to 2030, according to BNEF.</p>
<p>In Europe, Russia&#8217;s war against Ukraine impacted energy storage deployments. Record electricity prices have forced consumers to consider alternative forms of energy supply, driving the residential storage market in the near term.</p>
<p>The ambitions of renewable targets outlined in the REPowerEU plan and a renewed focus on energy security in the UK align with the significant utility-scale storage additions expected from 2025 onwards. From the previous forecast, BNEF has more than double energy storage deployments from 2025 to 2030 across Europe.</p>
<p>The report said an estimated 387 GW of new energy storage capacity will be added between 2022-2030 worldwide, equating to more than Japan&#8217;s entire power generation capacity from 2020.</p>
<p>By the decade&#8217;s end, the United States and China will remain the two largest markets, representing over half of the global storage installations. However, Europe is catching up with a significant ramp-up in capacity catalyzed by the continent&#8217;s current energy crisis.</p>
<p><strong>Pressures and Challenges </strong></p>
<p>The BNEF report said supply chain constraints could slow additions. In 2022, supply chain disruptions have resulted in lower utility-scale storage additions. Inflation, high transport costs, and raw material prices have made battery cells more expensive over the last year.</p>
<p>Helen Kou, an energy storage associate at BNEF and lead author of the report, said, &#8220;The energy storage industry is facing growing pains. Yet, despite higher battery system prices, demand is clear. There will be over one terawatt-hour of energy capacity by 2030. The largest power markets in the world, like China, the U.S., India, and the EU, have all passed legislation that incentivizes energy storage deployments.&#8221;</p>
<p>Regionally, Asia Pacific will lead storage build on a megawatt-basis by 2030, with momentum driven by the rapidly scaling market in China. But the Americas will add more capacity on a megawatt-hour basis as storage plants in the U.S. usually have more hours of storage. Even with its additional upside from recent policy advances along with the Middle East and Africa, Europe is set to lag behind its counterparts.</p>
<p style="text-align: center;"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-43101" src="https://mercomindia.com/wp-content/uploads/2022/10/Global-Cumulative-Energy-Storage-Installations-2015-2030-3.png" alt="Global Cumulative Energy Storage Installations 2015-2030" width="1098" height="726" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Global-Cumulative-Energy-Storage-Installations-2015-2030-3.png 1098w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Global-Cumulative-Energy-Storage-Installations-2015-2030-3-300x198.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Global-Cumulative-Energy-Storage-Installations-2015-2030-3-768x508.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Global-Cumulative-Energy-Storage-Installations-2015-2030-3-650x430.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Global-Cumulative-Energy-Storage-Installations-2015-2030-3-624x413.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Global-Cumulative-Energy-Storage-Installations-2015-2030-3-600x397.png 600w" sizes="(max-width: 1098px) 100vw, 1098px" /></p>
<p><strong>Batteries to dominate storage markets</strong></p>
<p>The evolving battery tech is driving the energy storage market. Currently, lithium-ion batteries account for the majority of installations. However, many non-battery technologies, such as compressed air and thermal energy storage, are under development.</p>
<p>BNEF expects batteries to dominate the market until the 2030s, owing to their price competitiveness, established supply chain, and significant track record. If new technologies can outcompete lithium-ion successfully, total energy storage uptake can be larger.</p>
<p>The forecast suggests that the majority of energy storage built by 2030 will be used to provide &#8220;energy shifting,&#8221; i.e., advancing or delaying the time of electricity dispatch. Customer-sited batteries, both residential and commercial, are also expected to grow at a steady pace. Germany and Australia are currently the leaders in this space, with sizeable markets in Japan and California.</p>
<p>BNEF forecasts that energy storage in homes and businesses will make up about one-quarter of global storage installations by 2030.</p>
<p>Yayoi Sekine, head of energy storage at BNEF, added: &#8220;With ambition, the energy storage market has the potential to pick up incredibly quickly. The nuts and bolts of how energy storage projects will materialize due to big policies like the US Inflation Reduction Act still need to be sorted. However, companies are already scaling up operations to capture the upside.&#8221;</p>
<p>A recent Lawrence Berkeley National Laboratory report said the U.S. had seen a drastic <a href="https://mercomindia.com/solar-plus-energy-storage-gains-market-share-in-residential/">rise</a> in PV plus storage installations, with 10% of all new residential PV installations and 5% of all non-residential installations, including battery storage, in 2021.</p>
<p>The U.S. energy storage market <a href="https://mercomindia.com/us-added-955-mw-energy-storage-installations/" target="_blank" rel="noopener">added</a> 955 MW and 2,875 MWh of new installations in the first quarter of 2022, taking the total grid-scale installations capacity to 2.3 GWh, according to a report released jointly by <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a> and the American Clean Power Association.</p>


Global Energy Storage Market to Grow 15-fold from 27 GW to 411 GW by 2030: BNEF

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