Global energy storage: five trends to look for in 2024

The landscape for energy storage is poised for significant installation growth and technological advancements in 2024. Countries across the globe are seeking to meet their energy transition goals, with energy storage identified as critical to ensuring reliable and stable regional power markets. The demand for energy storage continues to escalate, driven by the pressing need to decarbonise economies through renewable integration on the grid while electrifying sources of consumption. 

In this dynamic environment, staying abreast of the latest market trends and developments is crucial for industry players. This insight explores five key trends shaping the energy storage market in 2024 that will shape how the industry continues to mature and progress forward. 

Fill in the form to download the report in full and read on for a short introduction to a few of these trends.  

Alternative technologies are poised to increase  

Alternatives to lithium are heating up as companies like Form Energy, EnerVenue, and ESS, Inc have manufacturing facilities under construction, and sodium-ion cell manufacturing has commenced in China. Developers are looking to diversify their options from traditional lithium-ion with non-lithium alternatives, driven by systems deemed to be safer, with no augmentation, and lower life cycle costs, amongst other attributes. 

Revenue certainty takes shape across regions  

Incentives in Latin America, long-term contracts in Europe, capacity markets in APAC, and revenue stacking in the US all point to the increasing importance of stable, guaranteed revenue streams, particularly for standalone storage systems. Capacity reform and implementation provides reliability to the grid and much-needed offtake revenue streams. The full report includes regional details on revenue trends. 

Permitting is becoming more challenging as battery fire safety comes under scrutiny 

The evolution of energy storage safety has been marked by a dynamic interplay between technological advancements, regulatory frameworks, and industry best practices. One significant catalyst for the improvement of energy storage safety has been the accumulation of operational experience – Wood Mackenzie has tracked 14.8 GW of operational capacity in the US as of Q3 2023, a 159% increase from just 2021.  

Although early adopters in the field helped refine best practices and learn to navigate regional safety regulations, this knowledge is not evenly distributed across the industry. This year, developers will be contending with the rapidly evolving learning curve of safety implementation in design, siting, and operations.  

Pressure to engage with local communities much earlier than in years past will only heighten in 2024, which increases costs, logistics, and labour for developers. These early-stage development challenges will persist well into this year, as the industry grapples with storage adoption at the local level. 

Also in  Global energy storage: 5 trends to look for in 2024… 

Distributed storage will continue to increase as more households aim to hedge against increasing retail prices, reduce their carbon footprint, and have back-up power available and permitting is becoming more challenging as battery fire safety comes under scrutiny. 

Our latest global energy storage report explores all these themes and more. Fill in the form at the top of the page for your complimentary copy.