Energy storage technology will become more accessible in emerging markets in the coming decade, enabling a significant scale-up of renewable energy as a clean source of electricity generation, says a new research from World Bank Group.
The report commissioned by IFC and the World Bank-administered Energy Sector Management Assistance Program projects a 40-fold increase in developing countries’ stationary energy storage capacity by 2025, with more than 80 gigawatts (GW) expected to be added over that time period to today’s ’s 2 GW of installed electricity storage capacity.
“Energy storage technology will be critical in the expansion of renewable energy in remote and rural areas that lack grid infrastructure or reliable electricity supplies,” said IFC executive vice president and CEO Philippe Le Houérou.
“By dramatically expanding the capacity to store energy, these technologies will help countries meet their renewable energy targets, support the demand for clean energy, and help bring electricity to the 1.2 billion people who currently lack access,” Le Houérou added.
The expansion of battery and other stationary storage technology would make it possible for emerging markets to deploy solar photovoltaic and wind-powered electricity with less need for fossil fuel-fired power plants to provide backup when it is cloudy, rainy, or still.
Stationary energy storage can support utility-sized, distributed, and remote power systems such as micro-and nano-grids, providing the means to capture and redeploy energy generated from renewable sources on a continuous 24/7 basis.
Riccardo Puliti, senior director and head of Energy and Extractives at the World Bank, said the development of energy storage markets was important as countries work to implement the COP-21 international climate agreement.
“The World Bank Group is committed to creating the right environment to attract investment in the energy storage market,” Puliti said. “Continued innovation in energy storage technology and financing are vital to empower countries to meet the climate-smart targets set in the Paris agreement.”