Where will this come from? By Investing.com

Investing.com – Energy storage is expected to grow 34-fold by 2050, according to UBS.

The current capacity of about 270 GW is expected to rise to more than 9,000 GW to meet the demands of an energy mix increasingly dominated by renewable energy sources. By 2030, energy storage capacity is expected to grow eight-fold to more than 2,000 gigawatts.

The expansion of energy storage is seen as a crucial element to address the intermittent nature of renewable energy sources such as solar and wind. UBS’s analysis is in line with a broader consensus among various reports that forecast significant growth in energy storage through 2030 and beyond.

Notably, the IEA’s 2024 report noted a significant upward revision in renewable energy projections for 2050, including a 30% increase in solar capacity from the 2023 report and an eleven-fold increase from the 2015 report.

“We view this as a sign that energy storage requirements are not adequately estimated and we may see further upward revisions,” UBS analysts said in a note.

The bank also points to the changing dynamics of energy storage coupled with renewable assets, with estimates suggesting that storage capacity should represent around 20% of total renewable capacity.

This shift is further demonstrated by previous forecasts by the UBS China Utilities team, which forecast an increase in the ratio of storage to renewable assets from 10% in 2020 to 20-30% by 2030.

The report explores a variety of energy storage technologies that could contribute to this growth, and assesses their advantages, disadvantages and commercial viability.

“In our view, the types of storage implemented are likely to vary across regions, including due to these factors,” the analysts said.

While pumped hydropower currently makes up the majority of energy storage and is not expected to grow significantly due to geographic constraints, battery storage systems are expected to see significant growth, UBS notes.

This growth is due in part to advances in the electric vehicle industry and resulting cost reductions, as well as the modular and flexible nature of battery systems.

“The batteries have a wide range of sizes (residential to utilities), the batteries are modular, and they can be placed anywhere they are needed,” UBS analysts said.

However, the significant expansion required in energy storage comes with challenges, particularly limitations of some electrochemical batteries. These factors include reliance on critical raw materials, geopolitical risks, water-related production issues, concerns about age, safety and the economics of storage lasting longer than four hours.

“Other technologies could emerge as disruptors,” analysts note, such as gravity batteries, compressed air, compressed carbon dioxide, and liquid air storage, along with alternative battery types such as sodium-ion batteries, iron-air batteries, solid-state batteries, and flow batteries. .