Energy storage is an important technology for building a more sustainable and electrified world. Energy storage is the process of storing surplus energy generated at a certain time and saving it for later when demand is higher.
Energy storage is positioned to be a key enabler for emerging technology in many industries. Battery energy storage is critical to achieving clean energy goals by providing better utilization of renewable resources while improving grid reliability and price stability.
As the need for renewable energy grows, we must find effective ways to store this energy so that the energy can be available to consumers when they need it most. Throughout 2024, we can expect to see four trends for energy storage.
Greater Battery Storage Capacity
The U.S. Energy Information Administration states that in 2024, U.S. battery storage capacity is expected to nearly double. Since 2021, U.S. battery storage capacity has grown. By the end of 2024, it could increase by 89% if developers bring all the energy storage systems that they have planned by their intended commercial operation dates. Additionally, by the end of 2024, developers currently plan to expand U.S. battery capacity to more than 30 gigawatts.
Cost Reduction
The growth of the battery manufacturing industry has created lower prices and a greater availability of batteries. Energy storage costs have quickly changed over the years. The National Renewable Energy Laboratory projects a decrease in battery storage costs in the next few years. This is due to increased supply, improved manufacturing efficiencies, and Inflation Reduction Act tax incentives. Factors such as industry demand, supply chain constraints or expansions can impact the predicted costs for energy storage. These price reductions will benefit stationary storage and electric vehicle (EV) applications.
Battery Energy Density
Increasing battery energy density is shrinking system footprints, but the increasing heat loads brought about by more batteries in smaller spaces will require better thermal management systems. To manage this heat, system providers can turn to liquid cooled battery modules for greater efficiency and longevity.
EV Sales Surge
EV sales are predicted to see another record-breaking surge in 2024. According to Bloomberg, in 2024, global EV sales are expected to increase by 21%, reaching 16.7 million units. To support the EV expansion, the power grid will require support from Energy Storage Systems to provide EV power buffering. Without energy storage systems supporting EV charging infrastructure our grid may struggle to manage this increased load.
Energy Storage is Part of our Future
Although energy storage is a critical part of our sustainable future, there are several challenges faced by the industry. Increased demand for renewable energy is causing more energy storage installations to be built, with increased power density. This generates more heat which needs to be managed. Additionally, energy storage projects can be expensive, so energy storage companies need to identify and communicate long-term benefits and identify cost-saving measures to their customers. It is also important to implement safety precautions for energy storage systems, especially in large-scale installations, to mitigate cybersecurity threats and physical threats such as leaks or fires.
nVent's portfolio of enclosures, advanced climate control and liquid cooling, and electrical distribution systems help to connect and protect Battery Energy Storage Systems. Our expertise in cooling and managing power in data centers has us well-positioned to support our energy storage customers with innovative solutions.
These predicted 2024 energy storage trends support our transition to renewable energy and the global commitment to reduce greenhouse gas emissions. It is important that we continue to navigate the challenges of expanding energy storage as we build a more sustainable and electrified world.