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| Author | Jenny Lin |
| Updated | July 20, 2023 |
To transform to net zero, the world has started to expand the deployment of renewable energy. Although the supply chain costs and the material prices increased in 2022, the LCOE for a PV system is still lower than that of traditional generation, making solar the renewable energy with the highest installed capacity. As PV becomes increasingly competitive, it is gradually replacing the traditional energy sources.
In 2022, the Russia-Ukraine war woke up Europe to its dependence on natural gas and fossil fuel. The global shortage of natural gas and the rise of its price compelled countries to look for alternatives to maintain energy supply, seeking energy security through more diverse energy sources, thus, giving rise to a flourishing PV market. Europe's module demand is estimated at 55-70 GW this year and may increase to 90-110 GW during 2025 and 2026.
Global PV installed capacity continues to grow steadily. By 2030, the cumulative PV installed capacity may reach 6 TW, InfoLink projects in its recently published white paper, “Powering a Green Future: A forecast to 2030 for solar, wind, and energy storage.”As PV installed capacity increases, the development of energy storage is also picking up speed.
To achieve energy transition and secure energy supply and the environment, the EU is slowly raising requirements on the supply chain. In March, it announced the “Net-Zero Industry Act,” regulating the bloc to meet at least 40% of its clean-technology needs with local manufacturing capacity, hoping to strengthen the competitiveness and tenacity of its decarbonization technology. Also released in March, the “Critical Raw Materials Act” requires manufacturers to build their own safe and reliable supply chain to end the overdependence on raw material supplies from any single country. These materials are crucial to the green and digital twin transition of the 27-nation bloc. Meantime, the previously proposed ban on forced labor products is under deliberation. Some member countries, such as Germany and Lithuania, have started to require certificate of origin documentation, establish supervising systems, and examine products related to Xinjiang. Still proposals, these regulations will deal a huge blow to the heavily import-reliant Europe.
This year's Intersolar Europe saw the market adopting n-type and other novel products. Non-China manufacturers focus on modules with lower cell counts, black modules, and low-carbon modules. Europe has been the market that pays more attention to low-carbon products. Some module makers indicated the emission factor on their products, and several of them claimed to have completed the Simplified Carbon Evaluation (ECS, Evaluation Carbone Simplifiée).
The net-zero goals of the world become clearer amid the ongoing energy transition process, fostering the development of energy storage industry. Future energy storage technology will undoubtedly include AI, harnessing its power to analyze data and improve storage efficiency. With the help of AI, manufacturers optimize systems, extend battery lifespan, and enhance grid flexibility and security, accelerating the steady development of the energy storage industry. For example, the launch of the Evergen app makes battery energy storage systems (BESS) more convenient and intellectual. The AI technology of the app monitors weather forecasts and calculates how much energy should be saved. When the PV system installed cannot generate sufficient energy, the app will distribute the electricity stored. This innovation shows the increasingly significant role AI plays in the state of the art of energy storage technology.
In China, the FTM market displays stronger growth than the BTM market, thanks to policies encouraging energy storage integration that bolster the vigorous development of the FTM market. Meanwhile, the BTM market still has a long way to go due to the low electricity prices and unstable business model.
The U.S. is a relatively mature energy storage market. However, both FTM and BTM markets remain to be further developed, given varying business models and huge differences in installed capacity among states.
In Europe, electricity prices skyrocketed due to the energy crisis caused by Russia-Ukraine conflicts, further solidifying the government's push for energy storage and emphasizing the importance of energy security.
With renewable energy policy reforms and the continual expansions of international cell manufacturers, ESS installation will surge amid battery price declines. By 2030, global energy storage capacity may increase by 250 GWh and exceed 1,900 GWh, a 32.5-fold growth compared to a decade ago.
On the road to a net zero future, governments must revise and streamline policies to avoid stifling progress. Technology maturity and market demand help the PV industry fuel the rise of the energy storage industry. The government’s promotion and subsidy are especially vital as potent tools for propelling the growth of renewable energy.