Overseas energy storage and power generation demand

Global electricity output is set to grow by 50 percent by mid-century, relative to 2022 levels. With renewable sources expected to account for the largest share of electricity generation worldwide in the coming decades, energy storage will play a significant role in maintaining the balance between supply and demand.

Mainland China accounts for most of the global energy storage demand, driven in the near term by regional requirements for new utility-scale wind and solar projects to include energy storage capacity. However, the Chinese market is entering an era of change.

To support the global transition to clean electricity, funding for development of energy storage projects is required. Pumped hydro, batteries, hydrogen, and thermal storage are a few of the technologies currently in the spotlight.

“The growth in global electricity demand is set to remain robust through 2026, despite an uncertain economic backdrop,” said Keisuke Sadamori, IEA Director of Energy Markets and Security. “The strong expansion of renewables and nuclear is steadily reshaping electricity markets in many regions.

The global power system will be dominated by two mega-trends over the rest of the decade: solar's share in the electricity mix rising rapidly as it continues its exponential growth, and robust electricity demand growth as electricity replaces other forms of energy powering the global economy.

Global electricity demand is expected to expand at one of the fastest sustained paces in over a decade despite ongoing economic pressures, according to a new IEA report, with renewables, natural gas and nuclear all contributing to meet the additional demand.