Over USD 58bn committed to long-duration storage since 2019, says WoodMac

Governments and companies have committed more than USD 58 billion (EUR 55bn) to long-duration storage energy (LDES) projects globally over the past three years as they can help enable a grid with more renewables, Wood Mackenzie said last week.

Together, these projects represent 57 GW of capacity, which is three times the world’s energy storage capacity installed in 2022, the research firm adds.

LDES projects worth USD 30 billion are currently under construction or in operation, according to its report.

Most LDES technologies, however, are still emerging and will face challenges to scale before 2030, with the only mature solution, pumped hydro storage, expected to dominate the market till the end of the decade.

Wood Mackenzie also sees different enthusiasm about LDES in different parts of the world. Policy support in China is driving an acceleration of vanadium redox flow batteries and compressed air energy storage.

“This year, we’ve seen the world’s largest redox flow battery energy storage system, 100 MW/400 MWh, connected to the grid in Dalian, China. The city of Zhangjiakou also saw the world’s largest compressed air energy storage project, 100 MW/400 MWh, start its operations,” said Wood Mackenzie analyst Kevin Shang.

The US is also developing its LDES industry, while most countries in Europe have been less active, with the exception of the UK, which is looking to support industry players.

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