Despite policy headwinds earlier in the year, energy storage additions in China and the US are set to continue growing this decade.
The removal of storage mandates in China for renewables and the absence of offsetting drivers were big concerns. However, a new energy storage target was set in September, underlining the commitment of the world’s second largest economy to the sector. China also aims to accelerate the shift from mandates to market-driven growth through the spot market launch and the provincial compensation scheme.
In the US, federal policy shifts brought uncertainty due to frequent changes in import tariffs and new restrictions on the use of equipment from China. Still, market players are quickly adapting to the new environment, supported by domestic battery manufacturing initiatives by leading Korean firms. With slower-than-expected battery demand for electric vehicles, battery makers are shifting focus to stationary energy storage.
Global Energy Storage Boom: Three Things to Know
