Battery Energy Storage Systems (BESS) present a significant challenge to achieving net-zero emissions by 2050, according to a report by BofA Global Research. The shift to a net-zero emission world demands a fundamental overhaul of energy systems, moving away from fossil fuels and embracing renewable sources like solar, wind, and hydro power.
However, solar power generation depends on sunlight, which means no energy is produced at night, and output diminishes on cloudy days. The same issue exists with wind energy, where power generation fluctuates with wind speed, leading to inconsistent power output. Unlike traditional fossil fuel plants, solar and wind energy systems can’t be turned on or off at will to match electricity demand, which can destabilize the grid.
To address this challenge, the report emphasizes the need for energy storage systems, such as batteries, which are vital for grid stability. They help balance supply and demand, optimize the use of renewable energy, and reduce the reliance on fossil fuel backups.
The International Energy Agency (IEA) aims to triple renewable energy capacity by 2030, a goal that will require solutions like BESS to tackle the intermittency issues of solar and wind power. The IEA projects renewable energy capacity will grow from 4,244 GW in 2023 to 10,000 GW by 2030.
However, one of the main obstacles for BESS is the availability and recycling of raw materials, such as lithium, cobalt, and nickel. Both the EU and the US are dependent on a limited number of countries for these materials, which makes diversifying supply chains essential. To address environmental concerns and promote a circular economy, the EU and US are implementing regulations aimed at recovering critical materials. The EU has set a target to recover 50% of lithium and 90% of cobalt, copper, lead, and nickel from waste batteries by 2027.
Asia is expected to lead the growth of battery storage capacity, with an investment of up to $150 billion projected by 2030. Currently, 336 companies are involved in the sector, with the top 10 companies controlling 61% of the total capacity. At COP28 in Dubai, around 200 governments committed to tripling renewable energy capacity by 2030 and doubling energy efficiency efforts.
The global BESS market is forecast to reach at least 520 Wh by 2030, growing at a compound annual growth rate (CAGR) of over 21% from 2024. Asia is expected to dominate this market, accounting for 46% of global installations.
For detailed information and further insights, please refer to BioEnergyTimes.com, which provides the latest news about the Biomass Industry
