TrendForce: Global renewable energy installed capacity to increase by 72.4% in 2021

Constrained by the carbon neutrality goal and against the backdrop of falling system costs, global wind and solar installed capacity has shown a steady growth trend over the past five years. According to TrendForce statistics, the global cumulative installed capacity of renewable energy in 2021 is about 3,064GW (gigawatts), with an average annual growth rate of about 8-10%.

In 2021, the global energy storage market maintained rapid growth, with new installed capacity of 29.6GWh, a year-on-year increase of 72.4%. It is expected that the global energy storage market will usher in rapid development in the next 5-10 years, with new installed capacity of approximately 362GWh.

Judging from the current growth rate of energy storage markets in various countries, China is about to surpass Europe and the United States, with the main growth momentum coming from power generation. TrendForce believes that China's new energy storage will develop in the direction of scale and marketization, forming an energy storage structure with power generation as the main, policy-driven, energy storage mandatory, and grid side (transmission and distribution) and consumer side as supplements. By 2025, China's energy storage market is expected to exceed 100GWh.

In the United States, as the installed capacity of pumped hydroelectric storage is currently stagnant, future growth will focus on electrochemical energy storage. It is expected that the newly installed capacity in the United States will reach 136GWh in 2025. In Europe, the 2030 renewable energy installation target has been set, which will stimulate the demand for energy storage, and the newly installed capacity is expected to reach 54GWh in 2025.

Energy storage batteries and energy storage converters are the core markets, and the industry chain is highly concentrated

Overall, the global energy storage industry chain competition pattern is arranged by concentration as follows: energy storage batteries, power conditioning systems (PCS), and system integration. With the accelerated layout of Chinese energy storage battery manufacturers BYD and CATL, the cost advantage of energy storage systems has become more prominent, and the market share of Chinese companies has continued to expand. In terms of technology, Chinese energy storage battery manufacturers mainly use lithium iron phosphate, while overseas manufacturers mainly use ternary lithium batteries. However, due to the safety hazards of ternary lithium batteries in recent years, the market acceptance is generally lower than that of lithium iron phosphate batteries.

Most energy storage PCSs come from solar inverter manufacturers, and PCS is expected to maintain the competitive landscape of solar inverters in the future.