Global energy storage market: H1 2024 installation figures

Global energy storage installed capacity grew 93.8% YoY in the first half of 2024, coming in at 64.9 GWh. A total of 57.3 GWh came from utility-scale storage (including C&I), up 118% year-on-year. Meanwhile, 7.6 GWh came from the residential sector, up 7.7% year-on-year.

Utility-scale storage still dominates the Chinese energy storage market, which is mainly driven by the policy mandating storage ratio. The market added 34.9 GWh of utility-scale storage capacity (including 2.87 GWh of C&I), an increase of 97% year-on-year. The auction progress in the second half of 2024 should be closely monitored. The annual installation is expected to reach 72.8 GWh, up 40% year-on-year.

The US market is sustaining rapid growth. As the grid-connection procedure gradually improved, the market added 12.1 GWh of utility-scale energy storage capacity in the first half of 2024, up 188%. Project approval progress and interest rate reduction should be monitored in the second half. Annual utility-scale storage installation in the US is projected to reach 43 GWh, up 88.6% year-on-year.

Benefiting from California’s NEM 3.0 policy, the rate of pairing residential PV with storage in California has increased, driving the continued growth of residential storage across the US. Residential storage installations reached 1.3 GWh in the first half of the year, an increase of 19.6% year-on-year. In the second half, attention should be paid to California’s policy developments and the effects of the Southern California PowerPair program (pilot launched in May 2024). It is expected that annual residential storage installations in California will reach 3 GWh, up 50% year-on-year.

The residential storage market is still in an adjustment period in Europe, while large-scale storage is gradually increasing. In the first half of the year, residential storage installations reached 4.3 GWh, a year-on-year decrease of 16%. By country, Germany’s residential storage installation stood at 2.3 GWh in the first half, a decrease of 11.3% year-on-year. Given the moderate level of policy support and persistently high interest rates, the economics of residential storage is modest. It is expected that Germany’s residential storage installations will experience negative growth throughout the year, with an estimated total installation of 4.5 GWh, a decline of 18.5% year-on-year.

In Italy, residential storage installation came in at 0.8 GWh, a decrease of 59.1% year-on-year, mainly due to a surge in installations in the first quarter of 2023 before policy support tapered off, leading to a high comparison base period. As the Superbonus policy gradually phases out, Italy’s residential storage market is expected to return to a stable development state, with annual residential storage installations estimated at 2 GWh, down 26% year-on-year. In the utility-scale storage market, installations in the first half of 2024 reached 3.5 GWh, a year-on-year increase of 70%. Looking ahead to the second half, attention should be focused on the progress of Enel’s 1.6 GW project in Italy and the recovery of the UK market. It is expected that Europe’s utility-scale storage installations will reach 10 GWh this year, an increase of 51.5% YoY.

In the emerging utility-scale storage markets, Saudi Arabia’s 1.3 GWh Red Sea Project has come into operation in the first half of the year. The Indian market is still in the early stages of development, with installations reaching 0.32 GWh in the first half. Looking ahead to the second half, attention should be paid to the progress of utility-scale storage projects in Chile. If progress goes smoothly, Chile is expected to add 1.5 GWh of installations in the second half.

In the residential storage sector, Pakistan has come into the spotlight in the first half of the year. The country has demand for residential storage due to a fragile power supply system and high electricity prices. However, the high prices of lithium batteries reduced residents’ willingness to purchase in the early stage. It was not until the second half of 2023, when lithium-ion battery prices dropped significantly, that the Pakistani residential storage market began to grow. Installations reached 0.4 GWh in the first half of 2024, with annual installations expected to approach 0.8 GWh.

Trends and outlook for 2024

Given the production schedules of manufacturers for the second half and the market conditions in various regions, InfoLink expects the global energy storage market to maintain the growth momentum. It is projected that global energy storage cell shipments will reach 270 GWh in 2024, a year-on-year increase of 37%. Energy storage system shipments are expected to reach 200 GWh, a year-on-year increase of 38%. Energy storage system installations are projected to reach 153 GWh, an increase of 46% YoY.

About the author:

Robin Song is an energy storage analyst at InfoLink Consulting, focusing on lithium ion battery supply and demand analysis. He also provides insights on energy storage market trends. He previously worked for a leading lithium-ion battery manufacturer, where he provided market and investment analysis.